 |
The Market Oracle |
|
By: LewRockwell
Don Miller writes: An ill person may have diabetes or an infection. When an economy becomes ill people lose their jobs and watch the value of their homes and stock portfolios fall.
By: Joseph_Russo
We trust that all those who have engaged in trading markets for any period of time will conclude that it is an unrealistic expectation that any single or group of trading strategies can work to perfection all of the time. Price action is elusive more often than not. As a result, losses are a most assured and inevitable part of the entire trading process. However, unwelcomed but anticipated nonetheless, cumulative debilitating losses need not dominate ones trading experience. Similar to a professional baseball player’s batting average, highly successful trading strategies need only perform with consistency a small percentage of the time in order to deliver phenomenal benchmarked measures of success.
By: Joseph_Russo
First, we wish to state for the record that there is no meaningful difference in the intermediate and long-term market opinions held by the astute Mr. Prechter and those held by this analyst. Secondly, we would like to note that we hold the utmost respect for Mr. Prechter’s talents, skills, contributions, and achievements in both his publishing empire, and in his eloquent and brilliant sharing of Elliott Wave Theory. Without Mr. Prechter, this analyst would not exist in this venue.
By: LewRockwell
Michael S. Rozeff writes: Two major government economists, Christina D. Romer and Ben Bernanke, have done influential research on the Great Depression. Both implicate the State-run gold standard of that era, which differed from the pre-1914 gold standard, as a major culprit in the Great Depression. (See here and here.) Their work parallels that of other economists such as Barry Eichengreen and Peter Temin on the negative role of the interwar gold exchange standard. There is an emerging or existing consensus among economists about the negative effects of the gold-exchange standard.
By: Christopher_Quigley
"The causes of wealth are something totally different from wealth itself. A person may possess wealth i.e. exchangeable value; if, however, he does not possess the power of producing objects of more value than he consumes, he will become poorer. A person may be poor, if he, however possesses the power of producing a larger amount of valuable articles than he consumes, he becomes rich.
By: LewRockwell
Michael S. Rozeff writes: The terms "fiscal and monetary policy" annoy me. The fact that fiscal and monetary policy even exist annoys me. They are the terms that mean government control over the economy. That annoys me too.
By: Global_Research
Prof. John Kozy writes: Classical/neoclassical economics has consistently protected the wealth of the privileged; it has preserved the status quo. This is capitalism's intent, and the evidence for it is overwhelming. It has impeded the improvement of the human condition for two hundred years, and unless it is scrapped, it will continue to do so. No mere change in government can stop it.
By: Paul_L_Kasriel
Congress is about to consider legislation that could result in a tax on the burning of fossil fuels. Some argue that such a tax would result in increased prices of a wide variety of goods and services and reduced aggregate output. I do not want to get into the argument as to whether the burning of fossil fuels is contributing to global warming or whether global warming is globally harmful. Rather, I want to discuss the issue of taxing pollution in general. In other words, I want this to be a discussion about economic theory, not political-economic theory.
Read full article... Read full article...
By: Mike_Shedlock
In case you are new to this story, Gregory Mankiw, professor of economics at Harvard, proposed negative interest rates in It May Be Time for the Fed to Go Negative.
At one of my recent Harvard seminars, a graduate student proposed a clever scheme to [make holding money less attractive].
By: Mike_Shedlock
Paul Krugman is back in his usual form of preaching sheer idiocy with his piece Time for bottles in coal mines.
By: LewRockwell
Michael S. Rozeff writes: An economics debate of very great importance is surfacing. Is the government's economic rationale for bailing out the banks valid? If it is not, then the entire case for the bank bailouts fails. On one side of the debate are Austrians using Austrian economics, on the other side are Keynesians using Keynesian economics.
By: Mick_Phoenix
Who's that knocking on the door? Who's that ringing the Bell?
It's time for another visit by your friendly Collection Agency to offer timely advice and to remind you of his previous excellent record. You should all know by now that the Collection Agency doesn't pull any punches and has ensured that subscribers have been well ahead of developments in the global macro economy.
By: Professor_Emeritus
"Thank Heaven for little Keynesian Nobel laureates... without them what would little Keynesian Treasury secretaries do?..." At the long last we got the official explanation how we got into this mess. In his March 2, 2009, column in The New York Times under the banner title Revenge of the Glut Paul Krugman tells us, quoting the authority of the Chairman of the Fedreal Reserve Ben Bernanke, that it is all the fault of the Asians. They save damn too much. They test the endurance of unhappy Americans who bankrupt themselves in trying to work off all that darned excess saving fast enough before it can do more damage. Even though they do their level best, they could not keep up with the prodigious output of the Asians and "global savings glut" is the result.
By: Paul_L_Kasriel
Mainstream economists and the mainstream media continue to embrace John Maynard Keynes' notion of the "paradox of thrift." While most economists subscribe to the view that the pace of long-run economic growth is a function of productivity and thrift (saving), short-run growth can be retarded by too much thrift. According to this view, if households in the aggregate decide to cut back on their current spending, i.e., save more, aggregate economic demand will be negatively affected. Hence, the paradox of thrift. A little later in this commentary, I will try to dispel the notion that thrift retards growth in aggregate demand in the short run.
By: Mike_Shedlock
In one of the more ridiculous Keynesian theories to date, Gauti B. Eggertsson at the New York Fed comes to the conclusion Tax Cuts Will Deepen The Recession . Simple logic would dictate that letting people and businesses keep more of their money would be a good thing but amazingly Eggertsson comes to the opposite conclusion.
By: Money_and_Markets
Jack Crooks writes: There is a battle being waged now in the world of economics. This battle is fierce. And no matter who wins, the impact will be felt far and wide. I dub this epoch struggle: “Godzilla vs. King Kong”
I'm not sure who will win, but I do have a favorite.
Read full article... Read full article...
By: Mike_Shedlock
Krugman seems particularly proud of a piece he wrote a decade ago. His new remake, Hangover Theorists , is as wrong now as it was then. Let's take a look.
The hangover theory , which I wrote about a decade ago, is still out there. The basic idea is that a recession, even a depression, is somehow a necessary thing, part of the process of “adapting the structure of production.” We have to get those people who were pounding nails in Nevada into other places and occupation, which is why unemployment has to be high in the housing bubble states for a while.
Read full article... Read full article...
By: Mike_Stathis
Before I begin, I recommend you bookmark my archive on this site so you can easily find my new posts http://www.marketoracle.co.uk/UserInfo-Mike_Stathis.html
By: Gerard_Jackson
For years I have been stressing the media's lousy economics. For those readers who think I have been exaggerating the situation allow me to introduce you to Bernard Salt, a partner in the well known accounting firm of KPMG. According to Mr Salt
It was a no-brainer in the 1950s: half the working age population was not engaged in the paid workforce. Change based on the role of women was always going to transform our society over the course of a generation.
Read full article... Read full article...
