Here we go again….  I just posted about the broken window fallacy on Saturday, and here comes Eric Zencey writing in the NY Times trying to claim that “If you get into a fender-bender and have your car fixed, G.D.P. goes up” and that “Hurricane Katrina produced something like $82 billion in damages in New […]

When will the recession end?

Good series of articles in the NY Times today titled When Will the Recession Be Over? It’s a good read with differing views, but the bottom line consensus is “not soon”. gk

We should’ve elected Ron Paul

Ron Paul knows economics.  He knows how the free market system is supposed to work.  I say “supposed to” because we haven’t had a free market system in the US for almost 100 years. And yet people say the dumbest things, like “this proves the free market system doesn’t work without regulation” and “we need […]

How’s that working for you?

Back in January, I posted a short article basically saying that it was way too early to call a bottom in financial stocks.  I had been reading an article on by Doug Kass where he made the case that it was time to buy the financial sector, via XLF.   While I agreed with much of his analysis, […]

Disconnected again

After the bell tonight, Alcoa released their first quarter earnings.  Earnings dropped 54%, from $662 million (75 cents/share) last year, to $303 million (37 cents/share) this year.  According to Bloomberg analysts were expecting earnings to be 50 cents/share. Since they missed expectations big time, you’d think shares would drop, but no, shares of Alcoa are up […]

Wall Street Chaos

Just had to pass this on.  Excellent write up of the financial issues facing Wall Street and (though I disagree with some of it) Allan Sloan does a good job of breaking down a complex subject.  Highly readable and highly recommended. gk