The stock market swung wildly this past week, with the final result the S&P 500 down 3.1%, and the Nasdaq 100 down 3.9%. Everybody knows a major reason why: The Federal Reserve is winding down its aggressive monetary stimulus, and now the question is will they increase interest rates, and if so, how soon? QE3 is […]
Archives
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The Fed giveth, and the Fed taketh away? Is a bursting stock market bubble going to be the October Surprise?
11 Oct 2014
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There is an old saying which I think is largely true: He who lives by the crystal ball eats lots of broken glass. Certainly predicting the future is difficult for those without the divine revelatory skills of Joseph or Daniel in the Bible. Yet, there is another saying which also has a lot of truth […]
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Bastiat is rolling over in his grave, and shredding whatever remains of his attire on the shards of all the broken windows, because Mr. Obama’s former Treasury Secretary and the former President of Harvard, Larry Summers, says there is a free lunch with intelligent spending in infrastructure by the government. He cites the recent report […]
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Tish Warren found out that she was the wrong kind of Christian for Vanderbilt. The fact that she was not a fundamentalist, and that her group (affiliated with InterVarsity Christian Fellowship) generally welcomed a very broad range of Christian ideals did not matter much to university leadership. It didn’t matter to them if we were […]
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Chart of the Day–Longest tenured jobs
23 Sep 2014
I find very intriguing the right hand side of the chart (HT to Mark Perry @ Carpe Diem). What do you think explains this? Your answer should to some degree use the 2nd Law of Economics: Incentives Matter! And be nice please….
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We often debate the role of government in the economy, with most of your Berean bloggers taking a skeptical view of government beyond the biblical role of avenger of evil that God calls out in Romans 13. Government is an institution that, while populated by people marred by the fall, is nevertheless ordained by God […]
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Mr. Obama used his weekend address to try and refocus attention away from disastrous foreign policy news and to something that can motivate his base. Even Democrats are attacking his “hands off” approach, with Senator Dianne Feinstein calling him “too cautious.” So its only natural that Mr. Obama would like to change the subject. […]
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It’s a Whopper of a tax bill!
26 Aug 2014
Breaking financial news today is Warren Buffett’s financing of Burger King’s buyout of the Tim Horton restaurant chain. As part of this transaction, Burger King will move its corporate HQ to Canada, known as a Tax Inversion. Tax Inversions are increasingly popular with U.S. based companies, while being increasingly unpopular with U.S. politicians, since the […]
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John Cochrane is a tremendously talented economist and professor of finance @ Chicago’s Booth School of Business. He’s probably forgotten more arcane financial reasoning than I know; but that doesn’t stop us from critically examining his thinking. In today’s WSJ, Mr. Cochrane cheers the Fed’s balance sheet expansion as a good thing for the economy. […]
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Moving to the Left–Why it is essential to Love God with all our Minds, as well as our Hearts
26 Jul 2014
In Wednesday’s Politico, Thomas Ricks writes about how he is turning left politically mid-life, outlining a growing disillusionment with American military, government and economic results. Much of his criticisms I don’t fault, such as his specific criticisms of how and why we fought in Iraq (a subject I won’t delve into here). But he also […]