WC Varones

Don't lend your hand to raise no flag atop no ship of fools

On Mizzou, Clairemont McKenna, Yale, etc.

Don't send your kid to any college that has any kind of Grievance Studies department. He'll come out broke, stupid, and insufferable.

Pennsylvania Blue Cross gives customers the Obamacare Shocker

This arrived in the mailbox of a self-employed friend in Pennsylvania.

$1803 per month for health insurance!  That's 41% of median Pennsylvania household income!  And then there are thousands of dollars in out-of-pocket health care costs on top!  How is a family supposed to pay for food and shelter?

Obamacare is all about destroying entrepreneurism and the upward mobility of the middle class, and forcing people into indentured servitude to the corporations and the state.  Government workers don't have to pay $1803 per month.

Is Kashkari a chump?

Former Vampire Squidster and TARP bailout bagman Neel Kashkari named President of Minneapolis Dirty Fed.

Bye-ku for Joe Biden

Hillary's poll bounce
Left me nowhere to go but
To the Villages!

CalPERS to lower return targets -- but only if it has a really big year first

The officers that run the largest U.S. pension fund are proposing to lower their investment goals for the first time in four years, a move that could lead to higher contributions for government workers as well as cities and counties across California.

The plan from the California Public Employees’ Retirement System, which will be considered by its board next week, would trigger a reduction in the fund’s current 7.5% return assumption following profitable years when it earns more than expected.


The new proposal outlines a range of scenarios where Calpers would lower its return assumptions in years when investing profits top internal goals by 4% or more.
Mmmmm-hmmmmm.... So you're coming off one of the biggest stock market rallies in history, stocks and bonds are both near all-time high prices, but you're not going to do anything unless your balanced portfolio goes up another 11.5% in a year.

Waiters gone bad

La Jolla Light:
After leaving work at NINE-TEN Restaurant around 11:30 p.m. Wednesday, Sept. 30 and walking south on Draper Avenue, a man came around the corner by the post office wearing a Halloween mask, hooded sweatshirt and baggy pants and aiming a handgun at me while shouting at me to give him my purse.
I wonder if he showed up for his shift the next day.

Scrooge McDuck explains the Federal Reserve

Stanford girls are smart

What's wrong with this picture?

The ever-amusing Krugmanesque Professor Menzie Chinn, arguing that data demonstrate that deficits are good for economic growth:

German engineering

Hillary crashes biotechs by threatening price controls

Biotechs were off to a flat start this morning, until this.

Here's the tweet (not sure about the time stamp which shows 7:26 p.m. tonight which hasn't happened yet unless maybe that's the Benghazi time zone):

Barron's and Economist Magazine call for MOAR free money

The Economist used to be a sensible, free-market-oriented news magazine, but has in recent years fallen in love with all manner of central planning, including twice endorsing leftist Barack Obama for President.  This week's call for still more centrally-planned zero interest rates is no exception:
On its own, therefore, the balance of probabilities argues against a rise. But the clinching argument against the hawks is that they ignore a fundamental asymmetry of risks. If the Fed waits too long to tighten, then inflation will rise above 2%. Were that to happen, the Fed has unlimited capacity to raise rates and could do so safe in the knowledge that it had pushed the American economy to its speed limit. If rates then had to rise steeply, the central bank would at least have more room to respond to future troubles by cutting again.

Raising rates too soon would be much costlier. A slowdown in growth could turn low inflation into deflation. To perk the economy back up, the Fed would have little option but to restart quantitative easing. That sort of backtracking is precisely the fate that has befallen other central banks which moved to tighten too swiftly (see article). Years of rock-bottom interest rates in Japan might have been avoided had the Bank of Japan been a little more patient in 2000, when it lifted rates in response to quickening growth (and higher stockmarkets) despite falling prices.

Low interest rates have risks. But premature rate increases can make them a near-permanent feature of economic life. For months Fed statements have declared that inflation will soon return to 2%. There is little harm in waiting to be sure.
This fear of "asymmetric risks" is what has created the reality of asymmetric policy: years of global ZIRP, flirting with NIRP, and trillions of dollars created out of thin air. If non-zero interest rates do eventually create a crisis, it won't be the fault of the increase, but of the central planners who distorted the economy and created massive imbalances by forcing rates to zero for so long.

And here's Wall Street mag Barron's pleading for more of the same.
Related Posts Plugin for WordPress, Blogger...

Contact Us

e-mail: wcvarones *at* yahoo *dot* com

Blog Archive