Quote of the week
“The slide back to the spending compromises will start slowly, and begrudgingly, but as the grassroots pressure begins to rise in the face of the free-falling economy, compromises will be made. And in no time at all, the government will again find itself falling off the spending wagon and, figuratively speaking, standing naked in a restaurant bathroom with a porn star and a face covered with cocaine.” – David Galland
by David Galland
“Over the last year, the only thing that has kept it from getting downright dire has been the government’s unhesitant intervention… its unleashing trillions of dollars of new money into the economy and supporting failed institutions with trillions more by buying up toxic mortgages, offering purchase incentives, suppressing interest rates, offering tax credits, and so forth.” more… [It was quite difficult to pull a single summarizing quote out of this piece, although the above quote of the week was from it as well. In any case, I highly recommend this article for its wit, entertainment value, and especially its good analysis.]
by Mark A. Calabria
“First of all, there really needs to be a public debate over the Fed’s 2% target. After all, a 2% rate of inflation over, say, 30 years erodes almost half of one’s wealth. How that can seriously be viewed as `price stability’ is beyond me. While a 2% rate of inflation is not going to bring the economy to a halt, it is still a massive theft of wealth over the long haul.” more…
by Jon Stewart via James Burnett
“There are terrorists and racists and Stalinists and theocrats, but those are titles that must be earned. You must have the resume. Not being able to distinguish between real racists and tea partiers, or real bigots and Juan Williams and Rich Sanchez is an insult — not only to those people, but to the racists themselves, who have put forth the exhausting effort it takes to hate. Just as the inability to distinguish between terrorists and Muslims makes us less safe, not more.” more… [To further his tunnel analogy – what if you just don’t want to use the tunnel?]
- The Bain Report
- Four failed banks this week.
- Amazon Best Sellers: #1 Decision Points by George W. Bush; #2 Diary of a Wimpy Kid: The Ugly Truth by Jeff Kinney; #3 Broke: The Plan to Restore Out Trust, Truth, and Treasure by Glenn Beck.
- Failure Friday
- Bill Bonner: The Absurdity of Central Planning
Politics and Such
- Department of Justice comes out against patenting genes.
- Bernanke’s explanation of QE2.
- The Huffington Post calls QE2 “stimulus” by another name.
- Rally For Sanity fun “Is Obama a Keynesian?” The fun is where people think Keynesian means Kenyan. (video 1:54).
And now the numbers…
DOW Jones Industrials – 11,444.08 (+325.59/2.93%)
S&P 500 – 1,225.85 (+42.59/3.60%)
VIX – 18.26 (-2.94/-13.87%)
CSI 300 (China) – 3,520.798 (+140.815/4.17%)
BSE 500 (India) – 8,405.13 (+368.25/4.58%)
MICEX (Russia) – 1,540.11 (+16.72/1.10%)
BOVESPA (Brazil) – 72,606.578 (+1,933.281/2.74%)
Nikkei 225 (Japan) – 9,625.99 (+423.54/4.60%)
RICI (Commodities) – 3,690.09 (+169.93/4.83%)
Gold/oz – 1,397.70 (+40.10/2.95%)
Silver/oz – 26.748 (+2.184/8.89%)
Copper/lb – 394.85 (+21.50/5.76%)
Oil/bbl (Brent) – 88.11 (+4.96/5.97%)
Wheat/bu (CBT) – 728.75 (+11.50/1.60%)
Corn/bu – 601.75 (+19.75/3.39%)
Rough Rice (CBOT) – 14.98 (+0.255/1.73%)
EUR-USD – 1.4032 (+0.0085/0.61%)
USD-JPY – 81.26 (+0.86/1.07%)
USD-HKD – 7.7506 (-0.0002/-0.00%)
USD-BRL – 1.6799 (-0.0191/-1.12%)
NZD-USD – 0.7955 (+0.029/3.78%)
3 Month Treasury – 0.11 (UNCHG)
2 Year Treasury – 0.37 (+0.03/8.82%)
10 Year Treasury – 2.53 (-0.07/-2.69%)
30 Year Treasury – 4.12 (+0.14/3.52%)
3 Month LIBOR – 0.29 (UNCHG)
U.S. Public Debt (official) – 13,723,439,668,440.20 (+64,627,211,050.70/0.47%)
Baltic Dry Index (BDIY:IND) – 2,495.00 (-183.00/-6.83%)
Yikes, what a week. The whole family was sick on Tuesday. Baby Girl was sick from Sunday night through Tuesday night, and Little Wife is still a little sick. And I’m not talking cold. I was up at 4AM Tuesday morning driving the porcelain bus. And really, the whole thing still lingers. But hey, the worst of it is over!
I’m actually pretty tired tonight so I’m going to cut it short. Breakfast at Classic Cup tomorrow. In fact, all of the Washtenaw County Liberty Breakfasts will be held at the classic cup. They are still the first and third Saturday of each month starting at 8AM.
Have a great weekend!