tag:blogger.com,1999:blog-3758330678390419129Sat, 04 Jul 2009 12:42:15 +0000http://www.economicpolicyjournal.com/rw@economicpolicyjournal.com (Robert Wenzel)Blogger2708125tag:blogger.com,1999:blog-3758330678390419129.post-8330202786067824666Sat, 04 Jul 2009 10:31:00 +00002009-07-04T08:42:15.118-04:00According to NYT, bloggers in China are "feasting" on the exploits of Mr. Zhao Danyang. He is being viewed as just this side of a pump and dump stock market operator.Mr. Zhao is the Chinese money manager who bid $2.1 million to have lunch with Warren Buffett. He had that lunch in late June. To the lunch he brought along annual reports of a Chinese supermarket firm, WuMart. Since word on this was http://www.economicpolicyjournal.com/2009/07/humble-mr-zhao.htmlrw@economicpolicyjournal.com (Robert Wenzel)0tag:blogger.com,1999:blog-3758330678390419129.post-4120328765402222041Sat, 04 Jul 2009 01:17:00 +00002009-07-03T21:29:54.919-04:00It's really amazing where you find Goldmanites. Writes Peter Brimelow:Dusty Rhodes, the former Goldman Sachs executive whom [William F. Buckley], with his snobbish weakness for the wealthy, installed in a vague (probably power-balancing) role at [National Review].Maybe that's how WFB learned this habit. Brimelow again:The fascinating news that the ageing William F. Buckley, beset by bladder http://www.economicpolicyjournal.com/2009/07/goldman-sachs-penetrates-national.htmlrw@economicpolicyjournal.com (Robert Wenzel)0tag:blogger.com,1999:blog-3758330678390419129.post-7488897697555589540Sat, 04 Jul 2009 00:44:00 +00002009-07-03T21:03:50.054-04:00The markets are closed, and there will also be no economic numbers for a couple of days. It's a good time to wander over to Taki's Magazine. There sits Tom Woods' reply, to a smart alec post by Wonkette that attempts a drive by shooting of Michelle Bachmann, Ron Paul, Woods and Austrian economics (though Wonkette forgot to roll the windows down).Woods takes the opening provided by Wonkette and http://www.economicpolicyjournal.com/2009/07/whats-really-wrong-with-left.htmlrw@economicpolicyjournal.com (Robert Wenzel)1tag:blogger.com,1999:blog-3758330678390419129.post-6483414447795928858Sat, 04 Jul 2009 00:08:00 +00002009-07-03T20:24:07.589-04:00...has some speculating that an iceberg is about to hit Palin.This wouldn't be a surprise to Bill Anderson, one of the best observers of current day events there is. In October last year, he wrote:Even though the Democrats have been pretty successful in helping to run up Sarah Palin’s negative ratings, nonetheless the Obama camp is afraid that she will be a political force in the future. I http://www.economicpolicyjournal.com/2009/07/curious-sarah-palin-resignation.htmlrw@economicpolicyjournal.com (Robert Wenzel)0tag:blogger.com,1999:blog-3758330678390419129.post-2817154229555016304Fri, 03 Jul 2009 23:07:00 +00002009-07-03T20:31:24.982-04:00The Washington Post is taking a lot of heat for its planned exclusive "salon" at the home of WaPo publisher Katharine Weymouth, where for as much as $250,000, the Post offered lobbyists and association executives off-the-record access to "those powerful few" — Obama administration officials, members of Congress, and even the paper’s own reporters and editors.But this kind of stuff goes on in D.C http://www.economicpolicyjournal.com/2009/07/wapo-access-scandal-all-about-how-you.htmlrw@economicpolicyjournal.com (Robert Wenzel)0tag:blogger.com,1999:blog-3758330678390419129.post-8600066121723067254Fri, 03 Jul 2009 15:31:00 +00002009-07-03T12:05:36.920-04:00Ambrose Evans-Pritchard is viewing a recent Fitch rating comment about Russia in the most negative light.Fitch says that banks will need to raise $60 billion in fresh capital if the “pessimistic scenario” unfolds. True.Bad loans could reach 40%, although analysts are flying blind since bank disclosure “does not always capture all asset quality problems.”But a $60billion raise shouldn't be that http://www.economicpolicyjournal.com/2009/07/russias-imploding-banks.htmlrw@economicpolicyjournal.com (Robert Wenzel)1tag:blogger.com,1999:blog-3758330678390419129.post-7907182606764456129Fri, 03 Jul 2009 10:12:00 +00002009-07-03T06:20:46.593-04:00AliceSchroedrerWarrenBuffettAlice Schroeder recently toured China to promote her Warren Buffett biography, Snowball. It wasn't like a U.S book tour, she writes:The rock-star treatment I received on my recent book tour in China makes sense only if viewed through the lens the Chinese apply to American culture: Its importance is relative to whether it can make you rich.Which is why Warren Buffett is no mere Oracle in China; hehttp://www.economicpolicyjournal.com/2009/07/buffett-biographer-as-rock-star.htmlrw@economicpolicyjournal.com (Robert Wenzel)0tag:blogger.com,1999:blog-3758330678390419129.post-763918759176645919Fri, 03 Jul 2009 09:54:00 +00002009-07-03T06:07:31.658-04:00A spike in oil prices to their highest level this year on Tuesday was caused by a rogue broker, Steven Perkins, who placed a massive bet in the Brent oil market, triggering almost $10m (€7m) of losses for his company, PVM Oil Associates. Prices rose in one hour from $71 to $73.5, the highest level for the year, according to FT. In total, futures contracts for more than 16m barrels of oil changed http://www.economicpolicyjournal.com/2009/07/steven-perkins-perks-up-oil-market.htmlrw@economicpolicyjournal.com (Robert Wenzel)0tag:blogger.com,1999:blog-3758330678390419129.post-3848668650582230062Fri, 03 Jul 2009 02:05:00 +00002009-07-02T22:13:34.493-04:00The printing presses at 2 p.m. Pacific Time began to roll out the first of nearly 29,000 IOUs totaling more than $53 million, most of the first IOU's are destined for residents around the state still awaiting income-tax returns.Some banks have agreed to honor the paper, including Bank of America and Wells Fargo, which will do so until July 10. "We are reluctant to take this step, but are doing sohttp://www.economicpolicyjournal.com/2009/07/california-begins-printing-ious.htmlrw@economicpolicyjournal.com (Robert Wenzel)1tag:blogger.com,1999:blog-3758330678390419129.post-5185965618351077199Fri, 03 Jul 2009 01:53:00 +00002009-07-02T21:58:42.749-04:00New York Knicks basketball player Eddie Curry has earned $34 million since 2005. Yet, this week, Bayview Loan Servicing filed a foreclosure notice with Curry re his house. According to the filing, Curry is behind on $217,502 in payments on a $3.7 million mortgage.Last fall, Curry asked the Knicks for an advance on his salary. He wanted an $8 million advance, they gave him $2 million.Not http://www.economicpolicyjournal.com/2009/07/only-in-nba.htmlrw@economicpolicyjournal.com (Robert Wenzel)0tag:blogger.com,1999:blog-3758330678390419129.post-6740853512714566725Fri, 03 Jul 2009 01:28:00 +00002009-07-02T21:36:11.942-04:00The California State Controller's Office has announced that it may issue registered warrants, or IOUs, for some payments as early as today.The Federal Reserve has issued a warning that states in part:These warrants will not be subject to the normal, federal check-hold limits and therefore could be subject to extended holds.The Fed goes on:The State of California will likely return unpaid any http://www.economicpolicyjournal.com/2009/07/federal-reserve-issues-warning-on.htmlrw@economicpolicyjournal.com (Robert Wenzel)3tag:blogger.com,1999:blog-3758330678390419129.post-8812517063506622683Fri, 03 Jul 2009 00:34:00 +00002009-07-02T20:48:21.464-04:00Pope Benedict XVI’s first social encyclical will be published next week Tuesday. Word is it will be heavy on economics.Caritas in Veritate (Love in Truth) has been delayed over a year, according to Edward Pentin, because the Pope wasn't happy with the contents. Pentin writes:Economics, by his own admission, isn’t his strongest field, even though his writings on the subject before he was elected http://www.economicpolicyjournal.com/2009/07/pope-as-economist.htmlrw@economicpolicyjournal.com (Robert Wenzel)1tag:blogger.com,1999:blog-3758330678390419129.post-4955185069780661993Thu, 02 Jul 2009 19:10:00 +00002009-07-02T16:45:59.563-04:00Bob Murphy sent me the following email, in reference to my post below on savings:date: Thu, Jul 2, 2009 at 11:30 AMsubject:you're luckyI was going to criticize your post on savings, but Firefox won't let me....Something like, "If I put $10 a week into a jar on my dresser, you're saying that's not saving?"My answer to Murphy is that as a professional economist to call that "savings" is misleading.http://www.economicpolicyjournal.com/2009/07/confusion-about-savings.htmlrw@economicpolicyjournal.com (Robert Wenzel)7tag:blogger.com,1999:blog-3758330678390419129.post-4251457703980849614Thu, 02 Jul 2009 14:46:00 +00002009-07-02T11:04:48.762-04:00If anyone thinks the Securities and Exchange Commission's goal is investor protection, they should read this WaPo article by Zachary Goldfarb.The goal of the SEC is the same as that of all government agencies:1. To protect their turf2. Expand their turfSEC investigator Genevievette Walker-Lightfoot clearly had Bernie Madoff in her sights. She knew something was up, outlined her suspicions and http://www.economicpolicyjournal.com/2009/07/real-goal-of-sec.htmlrw@economicpolicyjournal.com (Robert Wenzel)1tag:blogger.com,1999:blog-3758330678390419129.post-6208351680802137099Thu, 02 Jul 2009 14:12:00 +00002009-07-02T10:16:03.812-04:00The seminar I mentioned in an earlier post, about Carbon Emissions Trading, is online.Regular EPJ commenter "No Axe" has linked to it in a comment:http://eurexchange1.emea.acrobat.com/p41395981and calls it a decent primer.http://www.economicpolicyjournal.com/2009/07/carbon-emissions-trading-seminar.htmlrw@economicpolicyjournal.com (Robert Wenzel)0tag:blogger.com,1999:blog-3758330678390419129.post-8613031295371288858Thu, 02 Jul 2009 13:40:00 +00002009-07-02T10:09:10.723-04:00The Commerce Department has released the latest savings numbers. They show that savings have jumped to 6.9% of income. I suspect that part (if not most) of this increase is really a greater demand by individuals and corporations (and banks) to hold cash, rather than an increase in savings. But, it doesn't appear that Commerce computers understand "increased demand to hold cash," som it is being http://www.economicpolicyjournal.com/2009/07/convoluted-calculation-of-savings.htmlrw@economicpolicyjournal.com (Robert Wenzel)6tag:blogger.com,1999:blog-3758330678390419129.post-3715284499175970870Thu, 02 Jul 2009 13:09:00 +00002009-07-02T09:19:59.574-04:00Moody's cut Ireland's government bond ratings to Aa1, down from Aaa previously, and said the outlook was negative, leaving the door open for further cuts.Last month, Standard & Poor's rating on Ireland for the second time this year, dropping the rating to AA from AA+ and said the outlook remains negative. Fitch Ratings downgraded Ireland's credit rating.Ireland's deficit will soar to 10.8 percenthttp://www.economicpolicyjournal.com/2009/07/moodys-cuts-irelands-credit-rating.htmlrw@economicpolicyjournal.com (Robert Wenzel)0tag:blogger.com,1999:blog-3758330678390419129.post-1678834958562316983Thu, 02 Jul 2009 12:42:00 +00002009-07-02T08:54:27.830-04:00There's a fascinating Kate Kelly story at WSJ detailing the infighting that went on before William Dudley was finally named president of the New York Fed.Treasury Secretary Geithner appears to have been Dudley's top sponsor. During the selection process, Geithner knocked down Rodgin Cohen, who specialized in banking law at Sullivan & Cromwell LLC, as a strong candidate for the job, arguing, http://www.economicpolicyjournal.com/2009/07/geithner-logic.htmlrw@economicpolicyjournal.com (Robert Wenzel)2tag:blogger.com,1999:blog-3758330678390419129.post-7616749176981394319Thu, 02 Jul 2009 12:28:00 +00002009-07-02T08:34:45.952-04:00No surprise here.The ECB remains a key player in the global inflation racket, and they can create a lot on new money at an ECB interest rate of 1%.Since October, the ECB has cut its main interest rate by 325 basis points to the lowest ever. And, it has massively expanded its money printing operations by providing "liquidity" to the banking system.Last week alone, the ECB pumped in €442.2billion http://www.economicpolicyjournal.com/2009/07/ecb-leaves-rates-unchanged-at-1.htmlrw@economicpolicyjournal.com (Robert Wenzel)0tag:blogger.com,1999:blog-3758330678390419129.post-2055794191296182396Thu, 02 Jul 2009 02:05:00 +00002009-07-01T22:22:43.605-04:00Citigroup's announcement that it has boosted interest rates on up to 15 million U.S. credit-card accounts has some focused on Treasury Secretary Geithner. How interventionist will the Obama Administration become, given they own a one-third stake in Citi? Will they force a roll back of the rate hike, especially since it appears that the hike was instituted now, in part, ahead of the kick in of http://www.economicpolicyjournal.com/2009/07/all-eyes-on-geithner.htmlrw@economicpolicyjournal.com (Robert Wenzel)0tag:blogger.com,1999:blog-3758330678390419129.post-5739979109701868620Wed, 01 Jul 2009 23:09:00 +00002009-07-01T21:05:52.798-04:00A new half-cent sales tax in Los Angeles County goes into effect today, raising the county's rate to 9.75%. But the measure passed by voters in November might generate about $1.8 billion less than originally estimated becasue of the economic downturn.What other tax will they raise to make up the shortfall?http://www.economicpolicyjournal.com/2009/07/los-angles-sales-tax-hits-975.htmlrw@economicpolicyjournal.com (Robert Wenzel)0tag:blogger.com,1999:blog-3758330678390419129.post-5913321531118611841Wed, 01 Jul 2009 22:04:00 +00002009-07-01T19:04:39.937-04:00Another major step in the demise of the dollar as the world's reserve currency has just taken place.The Executive Board of the International Monetary Fund (IMF)has approved a framework today for the issuance of notes to member countries and their central banks. The notes will not be denominated in dollars, but in SDR's and are clearly an alternative to Treasury notes for central banks and others http://www.economicpolicyjournal.com/2009/07/international-replacement-for-treasury.htmlrw@economicpolicyjournal.com (Robert Wenzel)5tag:blogger.com,1999:blog-3758330678390419129.post-2598163672171898207Wed, 01 Jul 2009 19:30:00 +00002009-07-01T16:30:53.581-04:00The Richard Feynman YouTube video that I recently posted created quite a few emails and also quite a few links to the post, so it's time to pass along a Richard Feynman story that is most likely not yet out there in the general public.I have this hobby of trying to guess what influences have worked on people to make them the people they are today. With practice, you can become amazingly accurate http://www.economicpolicyjournal.com/2009/07/richard-feynmans-designated-impostor.htmlrw@economicpolicyjournal.com (Robert Wenzel)0tag:blogger.com,1999:blog-3758330678390419129.post-1842323835991516642Wed, 01 Jul 2009 17:44:00 +00002009-07-02T20:52:55.923-04:00It's a warm day here in Washington D.C. which means the sidewalk climatologists are out in force. The sidewalk claimatologists are easy to spot. They work in pairs, carry clipboards and smile as though they are excited to see you. They usually are about college age and have one other distinct charecteristic that they are unaware of. They are totally clueless about the climate and environment. Buthttp://www.economicpolicyjournal.com/2009/07/why-are-these-kids-on-sidewalk.htmlrw@economicpolicyjournal.com (Robert Wenzel)3tag:blogger.com,1999:blog-3758330678390419129.post-7153305671297847586Wed, 01 Jul 2009 13:20:00 +00002009-07-01T09:38:14.780-04:00Government bailouts mean the power to direct taxpayer money for personal gain can just be a phone call away. WaPo provides a current day case study:Sen. Daniel K. Inouye's staff contacted federal regulators last fall to ask about the bailout application of an ailing Hawaii bank that he had helped to establish and where he has invested the bulk of his personal wealth.The bank, Central Pacific http://www.economicpolicyjournal.com/2009/07/bank-bailout-power-moves.htmlrw@economicpolicyjournal.com (Robert Wenzel)0