30 November 2008

Liquidity Preference

I'm not so sure about this idea of Arnold Kling's.

If it gets pricier to stay liquid with Treasury securities then it will be less attractive to acquire said securities. However, this does not solve the counter-party trust issues. If firms still don't trust each other they will still demand some type of collateral. If it's too expensive to use Treasury securities then what will be used? Cash?

18 November 2008

U.S. Auto Industry Bailout

Should not be done. That's what I have to say. I won't elucidate my own thoughts why; just read this fine post from Will Wilkinson and we'll be on the same wavelength.

Let them fail, let them fail, let them fail. Purge the inefficient producers and move on to the next stage.

14 November 2008

The Future?

From an AP article talking about the economic downturn:
Bush and other leaders from the Group of 20 nations, representing the world's
richest economies plus major developing nations such as China, Brazil and India,
were expected to agree during two days of talks to set up a new "college of
supervisors" to oversee the global financial system. The group would include
financial regulators from many nations.

A flashing thought ran through my mind: this sounds ominously like nascent one world government.

Maybe I'm just a nut.

11 November 2008

Tangents

It's odd how the mind wanders. I was watching television when I saw a suit against the drug Seroquel. I'd never heard of it, so off to Wikipedia for knowledge. While reading about Seroquel's uses (antipsychotic drug used for schizophrenia and bipolar disorder) I read about other drugs used to treat the same conditions. Benzodiazapenes are mentioned, and lorazepam in particular. Now I used to take lorazepam for anxiety and panic attacks. So now my focus moves to lorazepam and it's uses and side-effects. This brings me to a disorder I've not heard of before: depersonalization disorder (DPD). After reading about it for a bit I acknowledge various similarities between DPD and the way I often feel. And finally I come across this quote in the Wikipedia article:
I find myself regarding existence as though from beyond the tomb, from another world; all is strange to me; I am, as it were, outside my own body and individuality; I am depersonalized, detached, cut adrift. Is this madness?
So, the point? I'm not sure what the point is, but I know that reality and consciousness are wildly difficult things to fully comprehend and understand; and that is a great thing.

Woe America

“My house is underwater, so I’m not doing too much impulse shopping or any renovation. But I’m not cutting back on this,” said Ray Lopez, a database administrator, as he placed a $24 petite sirah on the counter. “Life’s too short.”
...says a man about wine. I'm not cutting back on the booze either....only I'm drinking Miller Lite instead of fine wine. And it could very well be Keystone soon. I bet cheap beer is a counter-cyclical asset.

From a story in the New York Times.

10 November 2008

Rebel Fever!

If you're a Runnin' Rebel fan then you need to put this site on your list of those to visit daily:

The Rebel Blog

With college basketball starting up and a hot Runnin' Rebels squad to watch all season, this is one of your best sources for Runnin' Rebel info. The posts are splendid. Take this one for example.

I've been visiting this site for the past two seasons, and will continue to visit as long as it remains up.

06 November 2008

Many heads are better than one

I've never heard of this theory before and I was trying to explain this concept to my dad just last night. Aggregated intelligence, a truly amazing thing.

Condorcet rigorously demonstrated that, in large elections, many heads are better than one. Consider a contest between two candidates. Each voter has some information about which candidate will be better, but no individual can be sure that his or her information is accurate. If any one individual has to make the decision, he or she would choose according to the information available. However, there is a significant probability that the decision would be incorrect.

On the other hand, if each person's information is somehow correlated with the truth, then, even though no single individual is well-informed, the electorate in the aggregate is very well-informed. Condorcet's theorem demonstrates that if people vote according to the information they have at hand--even if it is scarce or incomplete--then, in large elections, the outcome will be the same as it would be if all voters were perfectly informed. That is, elections successfully aggregate information and produce results better than any individual acting alone.

Thanks to Greg Mankiw for finding this piece at Forbes.

04 November 2008

Truly an historic moment...

"Barack Obama will be the next president of the United States"


from the Economist...

02 November 2008

Ouch!

Thomas Sowell slams Barack Obama and the Democrats.

After this man has wrecked the economy and destroyed constitutional law with his judicial appointments, what can he do for an encore? He can cripple the military and gamble America's future on his ability to sit down with enemy nations and talk them out of causing trouble.

A thought...

from the Economist on Barack Obama:

"There is no getting around the fact that Mr Obama’s résumé is thin for the world’s biggest job. But the exceptionally assured way in which he has run his campaign is a considerable comfort. It is not just that he has more than held his own against Mr McCain in the debates. A man who started with no money and few supporters has out-thought, out-organised and out-fought the two mightiest machines in American politics—the Clintons and the conservative right."

[emphasis added]

Ha-Ha!

What a coincidence

I wonder if he hangs out with Joe the Plumber.

Time Banks

Here is a short post about time banks. I've thought about something like this before, but have never heard of it actually taking place. I like the idea of building social bonds through it's use. Instead of just trading services explicitly (like with money), participants would seem to gain cultural experiences and social interaction that could make people happier and more satisfied.