Movie Futures

The CFTC approved futures on box office receipts today.  While I agree with trading as many markets as possible to get efficient price discovery, I am not sure this one is applicable to that theory. Certainly, there are a lot …

CBOE IPO

The Chicago Board Options Exchange goes public this week. It is the last major exchange in the US to go public.  The CBOE missed the going public party by exchanges earlier this decade because of internal wrangling between them and …

College, Jobs, and What You Study

Senator John McCain in his acceptance speech for the 2008 Republican Presidential nomination said, “Education is the Civil Rights of our time.” He is correct. It’s not the civil rights in the same way that it was in 1960. Public …

All These Reform Measures Miss the Point

The Financial Regulation bill is horrible. It achieves nothing except giving politicians a chance to pat themselves on the back. They can go on television and say they are doing something. However, they have done nothing except increase costs, decrease …

Cash is King

No doubt if you have been following the stock market, you have heard that cash is accumulating on the balance sheets of companies. However, “Cash” is not the same as cash accumulating in your bank account.  “Cash” in accounting terms …

More Federal "Aid", means SPENDING

Obama appealed for more federal aid.  This innocuous phrasing sounds like we are trying to send money to earthquake victims in Haiti.  In reality, it’s to bail out profligate spending by state and local governments.  Governments think that they are …

Lots of "english" on that US Goal

England takes its “football” very seriously. This goal had to kill them. I can see the brooding in pubs happening all over the country. The English side played a lot prettier game than the American side. I am not an …

Career Politician Makes Him Market Savant

Bart Chilton is a career Democratic politician.  He has never worked in the private sector. Not even a college graduate.  No economics background.  Yet, he is a major force in finance as a commissioner of the CFTC.  The WSJ profiles …

Been Pondering the Low Rate Policy Awhile

I am uncomfortable with the quantitative ease and ultra low rate policy the Federal Reserve is pursuing. It has not proven to be inflationary yet. Also, modern economic theory would point policy in the direction of low rates. Essentially, the …

Union Pension Fund

Unions are supposedly looking out for their members. Supposedly, they create higher incomes, help union members save for retirement.  I don’t buy that argument in this day and age.  It might have been true in 1900, but times are far …

Substitutes

Retail sales took another tumble this morning, down 1.2%. Consumers are adjusting. Some would say, unemployment is high, no surprise that consumers are not spending. However, macroeconomic numbers like the diesel fuel index, shipping indexes have been rising, so many …

Out of Touch With Reality

http://www.youtube.com/watch?v=A0rO4GczfzU Presidential Press Secy Robert Gibbs says the CEO of a company can’t act without talking to his board! What an idiotic statement. Clearly, Mr. Gibbs has never been in private industry. The CEO of a company is only accountable …

Congratulations Chicago Black Hawks!!!!!!!!

WOW! What a night. Congratulations to the Chicago Black Hawks. You guys really made Chicago happy. The wounds of hundreds of thousands long suffering hockey fans were repaired last night. The Black Hawks were one of the worst, if not …

Mario Gabelli Drinks the Kool Aid

On CNBC’s Squawk Box this morning at 7:13 AM CDT, Mario Gabelli said he wanted to see a tax on hedge funds, high frequency traders(HFT), and other traders that are in/out traders. I smell a rat. What possible benefit does …

Fannie and Freddie are Government Jobs

If Fannie and Freddie were private organizations, they could have a private pay scale. As taxpayer funded entities, why are they being paid like private enterprise? It’s a fair question. Pre-crash, they were private but had the implicit guarantee of …

Focus on Supply, not Demand

Interest rates are at 0% for banks, and will remain there for a while.  The Federal Reserve has kept it’s printing press in high gear. The Congress has passed spending bill after spending bill designed to prime the pump for …

Oil, it Spills

Let’s try to cut through all the hyperbole in the oil debate. It’s better to look at reality, especially through the lens of economics. Here are some facts: Green jobs are not economical. They are heavily subsidized by taxpayers. In …

Why Government Jobs Don't Work

This is truly a scandal.  Neil Cavuto uncovers census worker scandal.  James O’ Keefe also uncovered census worker scandal.  This is just one example of why the multiplier of government spending in the economy is 0.  Governments cannot “invest”, they …