As day after day brings to light the damage caused by the credit and banking crisis of our times, man's natural reaction focuses on solving such real problems. Yet, most investors cling to their misplaced optimism in the ability of government employees to provide solutions, despite ample evidence that points to the opposite, and despite the fact that these same persons and institutions are responsible for creating this crisis in the first place.
The crisis we face is not merely one of a bankrupt monetary system, but also a crisis of ideas that contributed to the relativism of our times and the collective arrogance of those unable to distinguish between money, credit and capital or those wishing to suspend the laws of scarcity via sophisticated finance. In the process, a few have enriched themselves beyond description while the fate of most is one of continuing impoverishment. This is not a failure of capitalism but a result of the intellectual and moral poverty that grips our world. In the end, the medicine being administered, whether via inflationism, further regulation or direct and indirect nationalization of banking, is likely to contribute to further malaise - for we have focused on solving a problem without either understanding its nature or identifying its genesis.
Financial history will someday record this year in the same manner in which past financial disasters are embedded in the memory of our parents and grandparents. As it was then, the genesis of the problems started years earlier, yet very few recognized it at the time. As it always happens, even the "experts" are surprised by the severity of the ongoing pain necessary to correct the imbalances built over many years. Recoveries from economic disasters demand a period of cleansing that last many years. More often than not, the ensuing problems are aggravated even further by the invariable financial and regulatory meddling by well-intentioned bureaucrats.
Today's deliberate destruction of money and savings, via inflationism, is an attack on private property and an attack on freedom as we know it. We stand at the vanguard of what could be a violent period of upheaval - one of many that history has witnessed.
~ Anthony Deden, Sage Capital Zurich AG, Edelweiss Fund 2007 Annual Report, March, 2008
Jul 31, 2008
Ludwig von Mises on inflation
Inflationism is not an isolated phenomenon. It is only one piece in the total framework of politico-economic and socio-philosophical ideas of our time. Just as the sound money policy of gold standard advocates went hand in hand with liberalism, free trade, capitalism and peace, so is inflationism part and parcel of imperialism, militarism, protectionism, statism and socialism.
~ Ludwig von Mises, On the Manipulation of Money and Credit, p. 48
~ Ludwig von Mises, On the Manipulation of Money and Credit, p. 48
Nassim Taleb on journalists
Most journalists do not take things too seriously: After all this business of journalism is about pure entertainment not search for truth, particularly when it comes to radio and television. The trick is to stay away from those who do not seem to know that they are just entertainers (like George Will... ) and actually believe that they are thinkers.
~ Nassim Taleb, Fooled by Randomness, 2nd Edition, p. xxvii
~ Nassim Taleb, Fooled by Randomness, 2nd Edition, p. xxvii
Jeremy Grantham: "I am officially scared"
I am officially scared. In 2000, we had a technology bubble. But this is massive, a massive credit crisis and a bubble in global housing, global equity and global land.
~ Jeremy Grantham, GMO investment manager, "Even the pros may be stuffing the mattresses," ChicagoTribune.com, July 29, 2008, by Gail Marks Jarvis
~ Jeremy Grantham, GMO investment manager, "Even the pros may be stuffing the mattresses," ChicagoTribune.com, July 29, 2008, by Gail Marks Jarvis
Marc Faber on the coming global bust
The Fed has created a bubble in everything - stocks in emerging market, real estate everywhere in the world, commodities, art. The only asset class that is down is the U.S. dollar.
It is quite likely that the current synchronized global economic boom and the universal, all-encompassing asset bubble will lead to a colossal bust. [With commodity prices so inflated, I expect an] increase in international tensions [over resources].
~ Marc Faber, "Even the pros may be stuffing the mattresses," ChicagoTribune.com, July 29, 2008, by Gail Marks Jarvis
It is quite likely that the current synchronized global economic boom and the universal, all-encompassing asset bubble will lead to a colossal bust. [With commodity prices so inflated, I expect an] increase in international tensions [over resources].
~ Marc Faber, "Even the pros may be stuffing the mattresses," ChicagoTribune.com, July 29, 2008, by Gail Marks Jarvis
George Bernard Shaw on politicians
He knows nothing; and he thinks he knows everything. That points clearly to a political career.
~ George Bernard Shaw, Major Barbara (1907)
Jul 29, 2008
Jim Grant on why politicians do not attack Wall Street over the credit crunch (2008)
Wall Street is off the political agenda in 2008 for reasons we may only guess about. Possibly, in this time of widespread public participation in the stock market, "Wall Street" is really "Main Street." Or maybe Wall Street, its old self, owns both major political parties and their candidates. Or, possibly, the $4.50 gasoline price has absorbed every available erg of populist anger, or -- yet another possibility -- today's financial failures are too complex to stick in everyman's craw.
I have another theory, and that is that the old populists actually won. This is their financial system. They had demanded paper money, federally insured bank deposits and a heavy governmental hand in the distribution of credit, and now they have them. The Populist Party might have lost the elections in the hard times of the 1890s. But it won the future.
~ James Grant, "Why No Outrage?," The Wall Street Journal, July 19, 2008
I have another theory, and that is that the old populists actually won. This is their financial system. They had demanded paper money, federally insured bank deposits and a heavy governmental hand in the distribution of credit, and now they have them. The Populist Party might have lost the elections in the hard times of the 1890s. But it won the future.
~ James Grant, "Why No Outrage?," The Wall Street Journal, July 19, 2008
Paul Gigot on the lesson of Fannie Mae and Freddie Mac
The abiding lesson here is what happens when you combine private profit with government power. You create political monsters that are protected both by journalists on the left and pseudo-capitalists on Wall Street, by liberal Democrats and country-club Republicans. Even now, after all of their dishonesty and failure, Fannie and Freddie could emerge from this taxpayer rescue more powerful than ever. Campaigning to spare taxpayers from that result would represent genuine "change," not that either presidential candidate seems interested.
~ Paul A. Gigot, editorial page editor, The Wall Street Journal, "The Fannie Mae Gang," July 23, 2008
~ Paul A. Gigot, editorial page editor, The Wall Street Journal, "The Fannie Mae Gang," July 23, 2008
Franklin Raines responds to WSJ op-ed questioning Fannie Mae's risk levels
Shame on you. The Wall Street Journal, of all publications, has the opportunity and responsibility to provide leadership and shed light on the Enron debacle. At the very least, markets jittery about Enron need calm, trustworthy, responsible voices to clarify complex issues, get the facts, get them right, and put them in the proper context.
Unfortunately, in your Feb. 20 editorial about Fannie Mae, you only fan fears with your glib, disingenuous, contorted, even irresponsible attempt to tar our company with the Enron brush. At best, the editorial betrays a complete lack of knowledge or understanding about our business. At worst, you chose the thrill of a good smear job over the hard work of reporting or writing opinion pieces grounded in facts.
~ Franklin D. Raines, CEO, Fannie Mae, "Don't Tar Us With an Enron Brush," The Wall Street Journal, February 25, 2002
Unfortunately, in your Feb. 20 editorial about Fannie Mae, you only fan fears with your glib, disingenuous, contorted, even irresponsible attempt to tar our company with the Enron brush. At best, the editorial betrays a complete lack of knowledge or understanding about our business. At worst, you chose the thrill of a good smear job over the hard work of reporting or writing opinion pieces grounded in facts.
~ Franklin D. Raines, CEO, Fannie Mae, "Don't Tar Us With an Enron Brush," The Wall Street Journal, February 25, 2002
Franklin D. Raines on why Fannie Mae is no Enron (2002)
There are many lessons to be learned from the Enron debacle. One is the importance of careful fundamental analysis of major companies. Fannie Mae welcomes and, indeed, we seek out, that type of analysis.
Another lesson from Enron is that corporate behavior is fundamentally a product of the culture of the company. At Fannie Mae we take pride in the tone we set at the top, in our risk management focus, in our commitment to integrity and intellectual honesty and in the values of our people.
~ Franklin D. Raines, CEO, Fannie Mae, "Don't Tar Us With an Enron Brush," The Wall Street Journal, February 25, 2002
Another lesson from Enron is that corporate behavior is fundamentally a product of the culture of the company. At Fannie Mae we take pride in the tone we set at the top, in our risk management focus, in our commitment to integrity and intellectual honesty and in the values of our people.
~ Franklin D. Raines, CEO, Fannie Mae, "Don't Tar Us With an Enron Brush," The Wall Street Journal, February 25, 2002
Bill Fleckenstein on the government's efforts to rescue Fannie Mae and Freddie Mac
The government's efforts will not create a bottom for financial stocks because of the fundamental problem in this country: People carry too much debt against homes that are sinking in value, homes they really couldn't afford in the first place and homes that have become all the more burdensome due to the inflation that's ravaging their paychecks. That the implosion of the housing debt bubble is dragging the economy down with it will just put additional pressure on jobs and the ability to service housing debt.
~ Bill Fleckenstein, "The Repugnant Bailout Nation," Contrarian Chronicles, MSN.Money, July 28, 2008
~ Bill Fleckenstein, "The Repugnant Bailout Nation," Contrarian Chronicles, MSN.Money, July 28, 2008
Henry Hazlitt on inflation and credit expansion
If a government resorts to inflation, that is, creates money in order to cover its budget deficits or expands credit in order to stimulate business, then no power on earth, no gimmick, device, trick or even indexation can prevent its economic consequences.
~ Henry Hazlitt, “'Indexing': The Wrong Way Out,” The Freeman, May 1977
~ Henry Hazlitt, “'Indexing': The Wrong Way Out,” The Freeman, May 1977
Jul 27, 2008
Phil Duffy on the housing bill attempting to rescue Fannie Mae and Freddie Mac
You and I have just assumed responsibility for the irresponsible actions of these organizations and their investors. This has very little to do with home buyers and everything to do with bailing out bankers and investors. It has no effect on existing home owners. They already have their mortgages. It doesn’t matter to them if their mortgager goes out of business. The case that is being made for home buyers of the future is that they can’t do without Fannie Mae and Freddie Mac. But the market would move in to fill the role currently being played by these organizations. The market would be more prudent, but it is a lack of prudence that has caused the housing bubble and the demise of these government sponsored enterprises (GSEs).
Certainly the action by Congress with Fannie Mae and Freddie Mac, the bailout of Bear Stearns and hundreds of other interventions in the market have nothing to do with free enterprise and constitutional government. So what label accurately describes the nature of our current government? This was an issue addressed by Friedrich von Hayek, the author of The Road to Serfdom (Hayek was the co-winner of the 1974 Nobel Prize for Economics). He pointed out that socialism and fascism have many similarities. Certainly if the government owned Fannie Mae and Freddie Mac outright, that would be socialism. The government ‘sponsors’ but doesn’t own these entities. We the people don’t own them either, although we are forced to fund them. They will still be owned by private investors who will benefit at the expense of the rest of us. That describes a system called fascism. Surveillance of ordinary citizens is also a characteristic of fascist nations. As difficult as it may be to accept, our government is becoming increasingly fascist by any objective measure. We can no longer claim to be a constitutional republic because we refuse to be limited by our own Constitution.
Having lived through the World War II days and grown up in its aftermath when the question was asked, “How could Nazi Germany have occurred?”, I remember how we lulled ourselves to sleep. It couldn’t happen here. The problem was in the inherent nature of German stock (today we would call that DNA). We were biologically different, or so we convinced ourselves. The truth is that we are on the road to serfdom.
Phil Duffy, July 27, 2008
Certainly the action by Congress with Fannie Mae and Freddie Mac, the bailout of Bear Stearns and hundreds of other interventions in the market have nothing to do with free enterprise and constitutional government. So what label accurately describes the nature of our current government? This was an issue addressed by Friedrich von Hayek, the author of The Road to Serfdom (Hayek was the co-winner of the 1974 Nobel Prize for Economics). He pointed out that socialism and fascism have many similarities. Certainly if the government owned Fannie Mae and Freddie Mac outright, that would be socialism. The government ‘sponsors’ but doesn’t own these entities. We the people don’t own them either, although we are forced to fund them. They will still be owned by private investors who will benefit at the expense of the rest of us. That describes a system called fascism. Surveillance of ordinary citizens is also a characteristic of fascist nations. As difficult as it may be to accept, our government is becoming increasingly fascist by any objective measure. We can no longer claim to be a constitutional republic because we refuse to be limited by our own Constitution.
Having lived through the World War II days and grown up in its aftermath when the question was asked, “How could Nazi Germany have occurred?”, I remember how we lulled ourselves to sleep. It couldn’t happen here. The problem was in the inherent nature of German stock (today we would call that DNA). We were biologically different, or so we convinced ourselves. The truth is that we are on the road to serfdom.
Phil Duffy, July 27, 2008
Jul 26, 2008
Lewis Mumford on war
War is both the product of an earlier corruption, and a producer of new corruptions.
~ Lewis Mumford
~ Lewis Mumford
Jul 23, 2008
Thomas Paine on patriotism
It is the responsibility of the patriot to protect his country from its government.
~ Thomas Paine
~ Thomas Paine
Jul 22, 2008
Christopher Mayer on the GSE ticking time bomb (2002)
An explosive concoction has been created with the GSEs. The GSEs have increasingly dangerous levels of debt, coupled with an implicit government guarantee that seems to encourage even more debt. In the case of Fannie and Freddie, they are publicly traded companies accountable to shareholders for delivering earnings growth that is going to be increasingly difficult to deliver as they grow to the limits of their market. Thus, they are faced with the prospect of lower earnings growth or of finding a way to expand into other (riskier) areas of consumer finance—and further spreading the threat of nationalization beyond just the mortgage market.
The only way to correct this problem is the same way all socialistic practices are corrected—the government’s involvement must be severed completely. Just because the GSEs have led a charmed life so far is no reason to infer that their future will always be so bright. Socialism is not dead; it is alive in institutions like the GSEs, which are for all practical purposes government agencies.
It has often been said that there are no free lunches. Surely, Americans cannot continue to subsidize (indirectly) mortgage finance without cost. What most Americans cannot see is that such subsidization of the mortgage industry has led to the assumption of a great deal of risk on the part of the taxpayer. The longer the GSEs are able to expand as they have, the more certain it becomes that someday taxpayers will have to bear the cost of such excess. Like Russian roulette, the longer you play, the more certain it becomes that you will bear the risk for playing.
~ Christopher Mayer, “Mortgage Market Socialism,” The Free Market, March 2002
The only way to correct this problem is the same way all socialistic practices are corrected—the government’s involvement must be severed completely. Just because the GSEs have led a charmed life so far is no reason to infer that their future will always be so bright. Socialism is not dead; it is alive in institutions like the GSEs, which are for all practical purposes government agencies.
It has often been said that there are no free lunches. Surely, Americans cannot continue to subsidize (indirectly) mortgage finance without cost. What most Americans cannot see is that such subsidization of the mortgage industry has led to the assumption of a great deal of risk on the part of the taxpayer. The longer the GSEs are able to expand as they have, the more certain it becomes that someday taxpayers will have to bear the cost of such excess. Like Russian roulette, the longer you play, the more certain it becomes that you will bear the risk for playing.
~ Christopher Mayer, “Mortgage Market Socialism,” The Free Market, March 2002
Yuri Maltzev on the post-Cold War superpowers
Strip away the pomp and pretense, and superpowers can be seen as centralized Leviathans that have grown rich and militarily powerful by looting their own vast populations. Sometimes their respective interests require them to oppose each other, as they did in the Cold War. Other times--when, for example, they face "internal" independence movements that threaten the superpower model itself--they work in tandem.
~ Yuri Maltzev, "Chechnya Destroyed," The Free Market, March 1995
~ Yuri Maltzev, "Chechnya Destroyed," The Free Market, March 1995
Jim Grant on leverage
Ignorance about tomorrow is a constant of human affairs. Submission to this truth is what’s variable. In finance, submission entails a healthy fear of leverage.
~ James Grant, editor, Grant's Interest Rate Observer
~ James Grant, editor, Grant's Interest Rate Observer
Queen Christina of Sweden on merit
Extraordinary merit is a crime never forgiven.
~ Queen Christina of Sweden (1632-1654)
~ Queen Christina of Sweden (1632-1654)
Jul 20, 2008
John Templeton on philanthropy
As a philanthropist, I feel that love can mean helping people discover their own abilities, including thrift, responsibility, and character.
~ Sir John Templeton
~ Sir John Templeton
Peter Schiff on the need for limited government in the U.S.
My business works better here. I could try to run the business from overseas, say the Cayman Islands or Australia, but I have friends and family here. I'm optimistic.
I've supported political candidates in the U.S., including Ron Paul, who ran for the Republican presidential nomination this year. I'm not writing America off. But I'm trying to educate people so that they understand that when this economy does collapse, it is not because of capitalism but that it's because of too much government.
To really rebuild the economy, we are going to need cooperation from government and the government is going to have to get out of the way and make itself a much smaller burden on society, which means major reductions in government spending, taxes and regulations.
~ Peter Schiff, President, Euro Pacific Capital, "Gloom and Doom? Nah; Just for the U.S.," Barron's, June 30, 2008, by Lawrence C. Strauss
I've supported political candidates in the U.S., including Ron Paul, who ran for the Republican presidential nomination this year. I'm not writing America off. But I'm trying to educate people so that they understand that when this economy does collapse, it is not because of capitalism but that it's because of too much government.
To really rebuild the economy, we are going to need cooperation from government and the government is going to have to get out of the way and make itself a much smaller burden on society, which means major reductions in government spending, taxes and regulations.
~ Peter Schiff, President, Euro Pacific Capital, "Gloom and Doom? Nah; Just for the U.S.," Barron's, June 30, 2008, by Lawrence C. Strauss
Leonardo da Vinci on liberty
The chief gift of nature is liberty.
~ Leonardo da Vinci as quoted by Will Durant in The Renaissance, Volume V of The Story of Civilization
Leonardo da Vinci on truth
The truth of things is a supreme food for fine intelligences, but not for wandering wits.
~ Leonardo da Vinci as quoted by Will Durant in The Renaissance, Volume V of The Story of Civilization
Jul 19, 2008
Songs - Personal favorites
Adams, Bryan:
Bareilles, Sara:
Branch, Michelle:
Fogelberg, Dan:
Huey Lewis & The News:
Journey:
Lifehouse:
Lit:
Loggins, Kenny:
Mayer, John:
Rice, Chris:
Rush:
Spin Doctors:
Styx:
Thomas, Rob:
Three Dog Night:
Zevon, Warren:
Lost Classics...
Ace:
ELO:
Holmes, Ruper:
Lynn, Cheryl:
Ozark Mountain Daredevils:
Player:
Pointer Sisters:
Rea, Chris:
Rice, Chris:
Rufus and Chaka Kahn:
Thin Lizzie:
Love songs...
BBMak:
Bread:
Crow, Cheryl (with Sting):
Davis, Paul:
McCartney, Jesse
McCartney, Paul & Wings:
Perry, Steve:
Player:
Rice, Chris:
The Beatles
Benetar, Pat
Hit Me With Your Best Shot
You Better Run
I’m Gonna Follow You
Blue Oyster Cult
Burnin’ For You
Bowie, David
China Girl
Collins, Phil
Commodores
Duran Duran
Earth, Wind & Fire
Grand Funk
Some Kind of Wonderful
Joel, Billy
Movin’ Out
Little River Band
It’s a Long Way There
The Night Owls
Man on Your Mind
McCartney, Paul
Queen
You’re My Best Friend (You Make Me Live)
Stefani, Gwen
- Can’t Stop This Thing We Started
- Diana
- Do I Have to Say the Words
- Heat of the Night
- It’s Only Love (live version solo, live version with Tina Turner)
- Run To You
- Somebody
- Take Me Back (live version)
- The Only Thing That Looks Good On Me Is You
Bareilles, Sara:
Branch, Michelle:
- All You Wanted
- Are You Happy Now?
- Breathe
- Everywhere
- Goodbye to You
- Til I Get Over You
- The Game of Love (with Carlos Santana)
- I’m Feeling You (with Carlos Santana) (live version)
- Baby I’m A Want You
- Goodbye Girl (David Gates) (movie mix)
- Guitar Man (live version)
- Here Come Those Tears Again (live version)
- Saturday in the Park
- Baby, It’s Tonight
- Compared To Nothing
- Stranger To Myself
- Tell the Truth
- Time For Letting Go
- My Favorite Mistake
- Always on Your Side (with Sting)
- Bringing on the Heartbreak (live acoustic version)
- Love Bites (live version)
- Pour Some Sugar On Me (live version)
- Two Steps Behind
- ‘Ol 55
- On The Border
- After the Thrill is Gone
- Take It to the Limit
- One of These Nights
- Get Over It (live version)
- Hotel California
- New Kid in Town
- Pretty Maids All in a Row
- Try And Love Again
- I Can’t Tell You Why
- Those Shoes
- King of Hollywood
- Witchy Woman (live version)
- Honky Cat
- Rocket Man
- Benny and the Jets
- Harmony
- Dirty Little Girl
- All the Young Girls Love Alice (1973 live version, live version)
- Funeral For A Friend/Love Lies Bleeding
- Candle in the Wind
Fogelberg, Dan:
- Same Auld Lange Syne
- Hard To Say (live version)
- Leader of the Band
- Run For the Roses
- Blue Morning Blue Day
- Waiting For a Girl Like You
- Let’s Get It On
- Hold On My Heart (live version)
- Jesus He Knows Me
- Misunderstanding
- Throwing It All Away (inside the Genesis tour, live version)
- Sara Smile
- Gimme What You Got
- New York Minute
- The Boys of Summer
- The Heart of the Matter
- The Last Worthless Evening
Huey Lewis & The News:
- Do You Believe in Love?
- If This Is It
- Back In Time
- Walking on a Thin Line
- Beat It (with Eddie Van Halen) (live version)
Journey:
Lifehouse:
Lit:
Loggins, Kenny:
- I’m Alright
- Turn Me Loose
- The Kid is Hot Tonite
- Always On My Mind
- Working for the Weekend
- When It’s Over
- Lucky Ones
- Gimme Back My Bullets (live version)
- Simple Man
- That Smell (Pulp Fiction music video)
- Don’t Mean Nothing
- Angelia (When Harry Met Sally mix)
- Hold On To the Night (live version)
- Satisfied
- Should’ve Known Better
- When You’re Gone (Nine/Rose music video, live version, live acoustic version)
Mayer, John:
- Bigger Than My Body
- Clarity
- Daughters
- Dreaming With a Broken Heart (live version)
- Neon
- No Such Thing
- Say
- Slow Dancing in a Burning Room
- Something’s Missing
- Vultures
- Waiting on the World to Change
- Why Georgia
- Your Body is a Wonderland
- American Pie
- Hurts So Good
- Hand to Hold on To
- Wild Night
- It’s a Mistake
- Overkill
- Far Away
- How You Remind Me
- If Everyone Cared
- Next Contestant
- Photograph
- Rockstar
- Savin’ Me
- Someday
- American Girl (live version)
- Breakdown (live version)
- I Won’t Back Down (live version)
- Into the Great Wide Open
- Mary Jane’s Last Dance
- Stop Draggin' My Heart Around (with Stevie Nicks)
- Comfortably Numb
- Have a Cigar
- Money
- Pigs
- There’s No Way Out of Here (David Gilmour)
- Wish You Were Here (live version)
- Young Lust (adult content) (live version)
- Message in a Bottle (live version)
Rice, Chris:
- When Did You Fall (Harry Potter mix)
Rush:
- Trees
- Limelight
Spin Doctors:
- Jimmy Olsen's Blues
- Little Miss Can’t Be Wrong
- Pocket Full of Kryptonite
- Dirty Work
- FM
- My Old School
- Peg
- Reelin' In the Years
- Rikki Don't Lose That Number
Styx:
- Crystal Ball (live version)
- Don't Let It End
- The Best of Times (live version)
- Your Fooling Yourself
- Steamroller
- You’ve Got a Friend
- Everybody Wants to Rule the World
- Head Over Heels
Thomas, Rob:
Three Dog Night:
- Joy to the World
- One
- Never Been to Spain
- Mama Told Me Not to Come
- Bungle in the Jungle
- Sunday Bloody Sunday (live version)
- Pride (in the name of love)
- With or Without You
- One
- Beautiful Girls
- Ice Cream Man (live version)
- Jamie's Crying (music video, live version, Popeye sync)
- Just a Gigolo (David Lee Roth)
- Running With The Devil (music video, live version)
- You Really Got Me (music video, live version)
Zevon, Warren:
Lost Classics...
Ace:
- How Long Has This Been Going On?
- You’re the Only Woman
ELO:
- Strange Magic
Holmes, Ruper:
- Escape (Pina Colada Song)
Lynn, Cheryl:
- Got To Be Real
- When the Going Gets Tough the Tough Get Going
Ozark Mountain Daredevils:
- Jackie Blue
- If You Wanna Get To Heaven
- You Can’t Change That (with Raydio)
Player:
Pointer Sisters:
Rea, Chris:
Rice, Chris:
Rufus and Chaka Kahn:
- Tell Me Something Good
- You’re So Vain (tribute to The Bachelor's Brad Womack)
- Could It Be I’m Falling in Love
- Don’t Talk To Strangers
- Afternoon Delight
- Stuck in the Middle with You
- My Maria
Thin Lizzie:
- The Boys Are Back in Town
- Jailbreak
Love songs...
BBMak:
Bread:
- Baby I’m A Want You
- Goodbye Girl (David Gates) (movie mix)
Crow, Cheryl (with Sting):
Davis, Paul:
- I Go Crazy (live version)
- Sweet Life
McCartney, Jesse
McCartney, Paul & Wings:
Perry, Steve:
Player:
Rice, Chris:
- When Did You Fall (Harry Potter mix)
The Beatles
Benetar, Pat
Hit Me With Your Best Shot
You Better Run
I’m Gonna Follow You
Blue Oyster Cult
Burnin’ For You
Bowie, David
China Girl
Collins, Phil
Commodores
Duran Duran
Earth, Wind & Fire
Grand Funk
Some Kind of Wonderful
Joel, Billy
Movin’ Out
Little River Band
It’s a Long Way There
The Night Owls
Man on Your Mind
McCartney, Paul
Queen
You’re My Best Friend (You Make Me Live)
Stefani, Gwen
Jul 18, 2008
Lew Rockwell on the market's ability to deal with the credit crisis
Consider the fate of mortgage lenders and homeowners. The markets became wise to the fact that loose credit led to a fantastic bubble and that trillions in traded mortgages might not be serviceable in an environment of downward price pressure. Companies that once were seen as valuable and liquid are suddenly seen as unstable and wasteful. Their stocks are shorted by sellers. Their price crashes. Reality is revealed.
This is not an attack. It is not a result of malign "rumor mongering." It is not even regrettable from an economic point of view. Truth is a precondition for economic recovery. Bad investments need to be avoided. Good ones need to replace them. That is the very core of what all this economic activity is about. If the informed guesses of traders turn out to be wrong, there is a profitable opportunity for other traders to guess more accurately. To dampen this spirit is to do nothing but prop up illusions and perpetuate error.
What can the State contribute to this cause? It can get out of the way. It is not necessary to somehow demonstrate the superiority of markets over state planning. This is demonstrated every single second of every day. The politicians blather while the markets act with confidence and wisdom to achieve real results. The only positive contribution that politicians can make is to make the market a freer environment for resources to travel to their most profitable production lines.
~ Lew Rockwell, "The Greatness of the Market in a Crisis," LewRockwell.com, July 18, 2008
This is not an attack. It is not a result of malign "rumor mongering." It is not even regrettable from an economic point of view. Truth is a precondition for economic recovery. Bad investments need to be avoided. Good ones need to replace them. That is the very core of what all this economic activity is about. If the informed guesses of traders turn out to be wrong, there is a profitable opportunity for other traders to guess more accurately. To dampen this spirit is to do nothing but prop up illusions and perpetuate error.
What can the State contribute to this cause? It can get out of the way. It is not necessary to somehow demonstrate the superiority of markets over state planning. This is demonstrated every single second of every day. The politicians blather while the markets act with confidence and wisdom to achieve real results. The only positive contribution that politicians can make is to make the market a freer environment for resources to travel to their most profitable production lines.
~ Lew Rockwell, "The Greatness of the Market in a Crisis," LewRockwell.com, July 18, 2008
Ludwig von Mises on war and idealogy
To defeat the aggressors is not enough to make peace durable. The main thing is to discard the ideology that generates war.
~ Ludwig von Mises, Human Action (1949)
~ Ludwig von Mises, Human Action (1949)
Jul 11, 2008
Kevin Duffy on the shareholders of Fannie Mae and Freddie Mac
I’m shedding absolutely no tears for the nearly wiped out shareholders of Fannie Mae and Freddie Mac. Equity owners are last in line in the capital structure. Fan/Fred were leveraged 50x, so their equity was always a lottery ticket masquerading as long-term investment. Shame on these so-called "investors" for taking on such risk. Why did they? Because they thought the taxpayer would come to their rescue. They got what they deserve, as Mencken would say, “good and hard.”
~ Kevin Duffy, Bearing Asset Management, July 11, 2008
~ Kevin Duffy, Bearing Asset Management, July 11, 2008
OFHEO director: GSEs "are adequately capitalized"
OFHEO has been monitoring and continues to monitor closely Fannie Mae, Freddie Mac and the mortgage and financial markets. As one would expect, we are carefully watching the Enterprises’ credit and capital positions.
As I have said before, they are adequately capitalized, holding capital well in excess of the OFHEO-directed requirement, which exceeds the statutory minimums. They have large liquidity portfolios, access to the debt market and over $1.5 trillion in unpledged assets.
~ James B. Lockhart, Director, Office of Federal Housing Enterprise Oversight (OFHEO), Press Release, July 10, 2008
As I have said before, they are adequately capitalized, holding capital well in excess of the OFHEO-directed requirement, which exceeds the statutory minimums. They have large liquidity portfolios, access to the debt market and over $1.5 trillion in unpledged assets.
~ James B. Lockhart, Director, Office of Federal Housing Enterprise Oversight (OFHEO), Press Release, July 10, 2008
Jul 9, 2008
Ken Heebner: Investors are overly pessimistic
People are bearish and the problems aren't as bad as they think.
~ Ken Heebner, portfolio manager, CGM Focus Fund, as appeared on CNBC, July 9, 2008
~ Ken Heebner, portfolio manager, CGM Focus Fund, as appeared on CNBC, July 9, 2008
Lord Acton on democracy and elections
The one pervading evil of democracy is the tyranny of the majority, or rather of that party, not always the majority, that succeeds, by force or fraud, in carrying elections.
~ Lord Acton, The History of Freedom and Other Essays (1907)
~ Lord Acton, The History of Freedom and Other Essays (1907)
Jul 8, 2008
Robin Williams on divorce
Ah yes, divorce, from the Latin word meaning to rip out a man's genitals through his wallet.
~ Robin Williams
~ Robin Williams
Iris Murdoch on love
Falling out of love is chiefly a matter of forgetting how charming someone is.
~ Iris Murdoch
~ Iris Murdoch
Ambrose Bierce on politics
Politics, n. A strife of interests masquerading as a contest of principles. The conduct of public affairs for private advantage.
~ Ambrose Bierce, The Devil's Dictionary (1906)
~ Ambrose Bierce, The Devil's Dictionary (1906)
Jul 7, 2008
Jon Markman: Wait until S&P 500 slips below 1,000 to buy
I'm afraid there are no white knights on the horizon, as only time, apparently, can heal these wounds. I hate to sound like a pessimist, but you may wish to wait until the Standard & Poor's 500 Index slips under 1,000 to begin buying with confidence again.
~ Jon Markman, "Bad times for good companies," MarketWatch.com, July 7, 2008
(The S&P 500 closed Thursday, July 3 at 1262.90.)
~ Jon Markman, "Bad times for good companies," MarketWatch.com, July 7, 2008
(The S&P 500 closed Thursday, July 3 at 1262.90.)
Satyajit Das on the deleveraging process
All we are describing is how the system sheds excess debt. It's not actually a crisis. It's the natural process of destruction of leverage. A company has debt, can't refinance it, has to sell the asset or go bankrupt, and the process goes on until the debt reaches a manageable level. It's a process that central banks can smooth out by lowering rates, but they cannot actually shorten because they cannot force anyone to lend.
~ Satyajit Das, financial derivatives expert, "Bad times for good companies," MarketWatch.com, July 7, 2008, by Jon Markman
~ Satyajit Das, financial derivatives expert, "Bad times for good companies," MarketWatch.com, July 7, 2008, by Jon Markman
John Maynard Keynes on bankers
A sound banker, alas, is not one who foresees danger and avoids it, but one who, when he's ruined, is ruined in a conventional and orthodox way along with his fellows, so that no one can really blame him.
~ John Maynard Keynes, 1931
~ John Maynard Keynes, 1931
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| American Bankers Association 1875-1950 |
Satyajit Das on unwinding the credit bubble
We've had a party for 15 years, and the house is a mess. You can't clean it up in 10 minutes once you discover your parents are coming home. You're screwed, and you have to face up to the fact that you're screwed.
~ Satyajit Das, financial derivatives expert, "Bad times for good companies," MarketWatch.com, July 7, 2008, by Jon Markman
~ Satyajit Das, financial derivatives expert, "Bad times for good companies," MarketWatch.com, July 7, 2008, by Jon Markman
Leonard Read on the libertarian movement
Once an individual who would advance liberty has settled on self-perfection as correct method, the first fact to bear in mind is that ours is not a numbers problem. Were it necessary to bring a majority into a comprehension of the libertarian philosophy, the cause of liberty would be utterly hopeless. Every significant movement in history has been led by one or just a few individuals with a small minority of energetic supporters.
~ Leonard E. Read
~ Leonard E. Read
Jul 5, 2008
Lew Rockwell on government
A core problem with government is that its managers believe that all reality will conform to their wishes if they issue the right orders, pass the right laws, and put the right people in charge.
~ Llewellyn H. Rockwell, Jr., “Grand Theft Society,” July 1, 2008
~ Llewellyn H. Rockwell, Jr., “Grand Theft Society,” July 1, 2008
Jul 3, 2008
Bernard Baruch on voting
Vote for the man who promises least; he'll be the least disappointing.
~ Bernard Baruch
~ Bernard Baruch
Ron Paul on personal freedom and the Internet
The most basic principle to being a free American is the notion that we as individuals are responsible for our own lives and decisions. We do not have the right to rob our neighbors to make up for our mistakes, neither does our neighbor have any right to tell us how to live, so long as we aren’t infringing on their rights. Freedom to make bad decisions is inherent in the freedom to make good ones. If we are only free to make good decisions, we are not really free.
Socialist ideologies blur this line between self reliance and government control because the mistakes of the individual are spread to everyone else. Thus the government becomes very interested in your decisions and way of life, with the justification that you could make a mistake others will have to pay for. The end result is, of course, that everyone loses privacy and control over their own lives. Whether they realize it or not, they are no longer truly free.
~ Ron Paul, Personal Freedom and the Internet (June 30, 2008)
Socialist ideologies blur this line between self reliance and government control because the mistakes of the individual are spread to everyone else. Thus the government becomes very interested in your decisions and way of life, with the justification that you could make a mistake others will have to pay for. The end result is, of course, that everyone loses privacy and control over their own lives. Whether they realize it or not, they are no longer truly free.
~ Ron Paul, Personal Freedom and the Internet (June 30, 2008)
Jul 2, 2008
Kevin Duffy on government: illusion and reality
Government is the illusion that we can all live at the expense of everyone else, and the reality that a small band of thieves can live at the expense of the rest of us.
~ Kevin Duffy, Bearing Asset Management, July 2, 2008
~ Kevin Duffy, Bearing Asset Management, July 2, 2008
James Madison on the right to bear arms
Americans have the right and advantage of being armed — unlike the citizens of other countries whose governments are afraid to trust the people with arms.
— James Madison, Federalist No. 46 (January 19, 1788)
— James Madison, Federalist No. 46 (January 19, 1788)
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| James Madison 1902-1903 |
Whitney Tilson on Warren Buffett's Berkshire Hathaway
I sleep well. It's not going to double overnight, but we think it will in five years, which is a 15 percent compounded annual rate. It's the stock you want to own.
~ Whitney Tilson, principal at New York-based hedge fund T2 Partners, "Buffett's Berkshire Has Worst First Half Since 1990," Bloomberg, July 2, 2008
~ Whitney Tilson, principal at New York-based hedge fund T2 Partners, "Buffett's Berkshire Has Worst First Half Since 1990," Bloomberg, July 2, 2008
Jul 1, 2008
Henry Brook Adams on politics
Practical politics consists in ignoring facts.
~ Henry Brook Adams, The Education of Henry Adams (1907)
~ Henry Brook Adams, The Education of Henry Adams (1907)
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