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I seem to be the odd one out on this one but I’m sticking to my guns… interest rates can only go up.  This week should be a defining moment in this subprime mess… just as soon as the Fed makes its decision.

I’m expecting the rates to be held while the market is doing otherwise.  Have you ever seen a spoiled child react when they get that rare rejection?  We might be seeing a market ‘fit’ sooner that later.

Back in the late 90′s and early 2000 the rage was making a quick buck in the stock market. You could throw a dart at a moving stock ticker and still make money. Authors, talk show hosts, and other ‘experts’ abounded in their availability and willingness to share their winning methods. Day trading became the new buzzword, as a new breed of its constituents threw caution to the wind and staked their fortunes on the concept that profit was just an abstract idea and that it created itself out of thin air. (more…)

President Truman must be rolling in his grave.  We have become a society enthralled with the notion that responsibility lies…… way over there.  Burn yourself on HOT coffee at McDonalds?  Easy, just sue them for serving you hot coffee.  Suffer hearing loss from listening to your iPod to loud?  No problem, stick it to Apple for creating ADJUSTABLE volume controls. (more…)

I’d like to begin a conversation about the outlook for global economic stability over the next decade. Specifically, I have in mind analyzing a group of individual countries and considering the possible outcomes that would result from a severe economic slowdown or failure of each – independently. What would happen if China ran into serious trouble? What impact might the negative national savings rate in the U.S. have on the global economy if it cripples the U.S. economy? (more…)

Lower Gas Prices! Yes! Ok many of us have noticed that gas prices have come down significantly over the last weeks; or at least some of us have noticed that it is costing us between $5 and $15 LESS than usual – depending on whether your car likes to sip gas or knockout a gallon or two every street light.

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Some random thoughts…

How do you quantify a human’s ability to create? To Innovate? Within the framework of employment, how does the neoclassical view account for this value?

If I were a manager with a neoclassical economic view, I would probably analyze the marginal costs and benefits of laying one employee off. I would do the same with a varying number just the same.

The Library of Economics & Liberty mentions that, “a theory that explains the layoff decision by the changing tastes of managers for employees with particular characteristics will not be a neoclassical theory”.

The Logic of Collective Action, written by Mancur Olson, is an in depth discussion of groups and the dynamics involved in their formation, ability to attract members and ability to provide any benefit. He takes a very logical approach to analyzing groups. Step by step he puts the main components of a group together to give a clear understanding of the purpose and function of groups. His thoughtful review and subsequent dismissal of both traditional and orthodox group theories is more than adequately bolstered with strong arguments and compelling evidence. (more…)