Accounting versus Economics

Companies are reporting profits this year. There was a slew of them today. Guess what? It’s a mirage. As Arthur Laffer correctly points out in today’s WSJ, incentives matter. Companies can organize their accounting practically any way they want.  They …

Uh-Oh, Market Down Again; Momentum

These breaks get momentum. I remember during the week before the crash in 1987. My wife had won an awards trip to Palm Desert. We were relaxing with corporate people and each day the market was tanking. One executive asked …

D-Day, H-Hour

This weekend, I was in New Orleans, Louisiana. I was installed as a trustee on the board of the National World War Two Museum. It is our nations’ repository for World War Two History. Originally envisioned by author Stephen Ambrose, …

Recreating a Trading Pit

Markets have gone electronic. Floor traders are dinosaurs. They went electronic for many reasons. Anyone can provide a variety of benefits to open outcry versus electronic markets and vice versa-no need to hash all that here. There are some practical …

Tasteless Trader Joke

Years ago, the trading floor had the best jokes.  Some were really funny, many were tasteless.  No one with a thin skin could work on the trading floor. Literally everything was on limits from physical frailties and oddities to jokes …

The Chitown Hustle-Blago on Trial

Impeached Governor Rod Blagovich trial starts tomorrow.  He allegedly tried to sell a Senate seat.  That seat was “golden” according to him.  Before the trial starts, I think that it pays to understand a little background about Chicago.  Corruption is …

End the Ratings Cartel-Use the Groundswell

When you put a comedian in the Senate, these are the kinds of bills you get.  Franken wants to strengthen the bond ratings cartel.  In the 1930’s, the government performed a sweeping financial overhaul.  One of the things that they …

Fama speaks.

Can’t really add to this. Professor Fama should get the next Nobel Prize for Economics.

Krugman is in Fantasy World.

Sorry, I still wonder how the heck this guy got a Nobel.  Princeton Professor Paul Krugman says we haven’t spent enough.  He is all set to say something like this, “Because the Republicans fanned the fear flames of deficits, the …

National World War Two Museum-New Orleans, Louisiana

This week end, the National World War Two Museum in New Orleans, Louisiana is having a black tie soiree. It is a fundraiser for the museum, and if you are near NOLA, or want to go, buy tickets here.  It …

In Flanders Fields…

Little late with this. 11 hour drive from Northern MN to Chicago. Traffic horrible. But not any more horrible than what our guys are experiencing all over the world. I posted this to my Facebook page, but I really love …

WOW, shocker for salt water economists

The Harvahd Business Review reports that when government engages in stimulus, businesses cut back spending! The study is pretty comprehensive, starting in 1967. When you practice economics at the alter of Keynesism, you believe that government spending primes the pump, …

Thanks, big shout outs

Thanks to Takeareport.com for including us in their blogroll. Thanks to Pajamasmedia.com for including us in their blogroll.

Vacation

Headed up to Minnesota for a few days, so I won’t be blogging. No electricity (solar powered) or running water where I am headed. Just mosquitos and black flies. See you next Tuesday. I am sure I will wet a …

Memorial Day and Presidents

Memorial Day was originally called “Decoration Day”. It started after the Civil War to remember the dead soldiers that fought. It wasn’t until 1967 that the federal government officially called it “Memorial Day”, and it wasn’t until 1968 that they …

M-3 Money Supply Down

Years ago on Thursday afternoon, all the financial traders of the world used to wait in anticipation of the Federal Reserve release of the weekly money supply numbers.  It was a big deal, especially in the 1970’s when the Fed …

Figure(s) of the Day-UPDATED

Two figures of the day today. One is American Idol. I mention it because a guy from the CME Trading Floor started a company in his backyard called “Wuli Records”. There was a kid who used to jam in his …