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Thursday, 26 August 2010 19:30 |
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Wednesday, July 07, 2010 by John S. Chamberlain http://www.mises.org
Take cover when you hear a political leader talking about economic affairs. You can bet a bad decision is incoming. Luckily for the leaders, their meddling usually has a slow, erosive effect on the economy. Every so often, however, the great ones manage to land a real whopper that takes them down along with their whole country. Here are ten examples from history.
1. Charge Too Much and You Die
In the year 301, the Roman emperor Diocletian issued the Edictum De Pretiis Rerum Venalium, i.e., the Edict on Prices of Foodstuffs, which rebalanced the coinage system and set maximums on wages and the prices of many types of goods, especially food. The penalty for selling above the stipulated prices was death. Copies of the edict were inscribed on stone monuments all over the empire. Here's a tip for future dictators: never inscribe your blunders on stone unless you want people to laugh at you for the rest of eternity. The edict was a disaster. Sellers withdrew their goods, unwilling to sell at the fixed prices or even risk being falsely accused of selling beyond the maximum and thus be subject to execution. Workers responded to the wage edicts by vanishing or sitting around doing nothing. Eventually the edict was ignored and became a subject of derision and mockery which permanently lowered the prestige and authority of the empire. |
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Thursday, 26 August 2010 19:30 |
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Wednesday, July 07, 2010 by John S. Chamberlain http://www.mises.org
Take cover when you hear a political leader talking about economic affairs. You can bet a bad decision is incoming. Luckily for the leaders, their meddling usually has a slow, erosive effect on the economy. Every so often, however, the great ones manage to land a real whopper that takes them down along with their whole country. Here are ten examples from history.
2. Shearing the English Wolf
You know you are doing something wrong when your enemies become folk heroes like Robin Hood. Common sense is to tax the weak and give money to the strong, but after his failure in forestry policy King John of England decided to try the reverse. He relieved the knights of the realm from their military service requirements, but then ordered them to pay instead a hefty "scutage" (shield) tax. Soon, there were 10,000 Robin Hoods trying to kill him and going about it in an organized fashion. Signing the humiliating Magna Carta in 1215 bought him some time, but by the next year he was living on the lam. After his folly-won treasure was washed away in a mistimed river crossing, he went crazy and died soon after. |
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Wednesday, 24 February 2010 18:02 |
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The Housing Crisis Continues...
The mortgage and housing crises resulted from overleveraging housing assets by both individual Americans and the financial industry. The Dolts in DC - following their practice of blaming individual Americans because we are "stupid" and businesses because they are "greedy" - refuse to recognize that it is their policies and legislation that form the root cause of these failures.
We the People are not stupid and businesses are only greedy if the Dolts in DC allow it.
Today, both your ability to earn an income from your work or your small business and to keep some of it for yourself and your family are at greater risk than at any time in the history of America. The "giant sucking sound" you hear is the Dolts in DC spending money we don't have on stupid (it applies to them) programs we don't need.
Step out of the fog of conventional wisdom and recognize that unless you gain control of every penny possible you will soon be the indentured servant of lenders and the government.
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Get out of debt.
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Dump your 401(k) or equivalent, IRAs, and any investment program that guarantees only that it guarantees nothing.
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Put your money into savings programs that guarantee the return of your money and don't be overly concerned about the return on your money (Will Rogers advised this in the ‘20s - boy was he right then - and now!)
Tuesday, February 23, 2010
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Wednesday, 17 February 2010 21:15 |
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From the National Ethics Bureau...
Rogue Advisors on Parade.
 Recent crimes and consequences in the
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Wednesday, 17 February 2010 21:09 |
Advisors optimistic about 2010
Advisors are optimistic heading into 2010, with the majority focusing on acceleration and growth in the wake of the recent recession, according to a survey by Curian.
Nearly 70 percent of the 1,804 advisors polled said that their business mindset heading into 2010 was one of acceleration and growth. Meanwhile, less than one quarter said their main focus for the year would be reconstructing their asset and client bases.
When asked what type of support they will need to grow their business, most advisors answered "marketing" followed by "total account development and cross selling."
According to Dan Maurer, senior vice president of marketing at Curian, when it comes to marketing support, advisors prefer working with companies that can provide customized materials that will help attract new clients. "At the crushing end of the tech bubble, advisors were scared and unsure of what was going on, and they weren't taking the steps to maintain their business. The organizations that gave them products put their heads in the sand, too."
In addition, 70 percent of respondents planned to increase their use of separately managed accounts in 2010, while 60 percent said they would increase their use of variable annuities and 56 percent expected to use life insurance more often.
Finally, 65 percent said their clients are seeking more conservative investments, while 60 percent said their investors are looking for guaranteed income.
In addition, 70 percent of respondents planned to increase their use of separately managed accounts in 2010, while 60 percent said they would increase their use of variable annuities and 56 percent expected to use life insurance more often.
Finally, 65 percent said their clients are seeking more conservative investments, while 60 percent said their investors are looking for guaranteed income.
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Wednesday, 17 February 2010 21:06 |
Hospitals struggle with rising cost of uncompensated care
Each year, American hospitals face billions of dollars in unpaid medical costs, and costs will likely rise if no action is taken.
According to the New York Times, "the cost of doing nothing in Washington translates into tens of billions of dollars each year in medical bills that go unpaid by patients with little or no insurance. Nationwide, the cost of unpaid care for hospitals, which includes charity care as well as money that could not be collected from patients, was around $36 billion in 2008. It is expected to spiral higher."
A related article in the Wall Street Journal recently said, "Hospitals stocks have dropped as much as 20 percent from their January peaks" a portion of which is due to the fact that a health overhaul would have reduced uncompensated care, which makes up more than 20 percent of revenue for some hospital operators. |
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Wednesday, 17 February 2010 21:03 |
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Confidence fell unexpectedly among U.S. consumers during February after reaching a two-year high, as concerns over the state of the job market linger.
The Reuters/University of Michigan preliminary consumer sentiment index fell to 73.7 from 74.4 in January.
The index reached a 30-year low of 55.3 in November 2008, but has been improving steadily ever since.
The measure of current conditions, which measures Americans' perceptions of their own finances and whether it's a good time to make large purchases such as cars and houses climbed to 84.1 from 81.1 the previous month.
Meanwhile, the index of expectations six months from now fell to 66.9 from 70.1 in January. |
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Wednesday, 17 February 2010 21:02 |
Survey: Economists predict slower growth by end of the year
Economists in the private sector believe the economy will continue to grow at a faster-than-expected pace during the first three quarters of 2010, before slowing at the end of the year, according to a survey today by the Federal Reserve of Philadelphia.
For the year, economists increased growth estimates for annualized real gross domestic product (GDP) to 3 percent from earlier projections of 2.4 percent.
The survey found that most expect growth to be greater than expected during the next two quarters, but estimates were downwardly revised at the end of the year. |
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Wednesday, 17 February 2010 20:58 |
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Friday, February 12, 2010
From ProducersWeb.com
Polls: Americans split on future of health reform
Recent polls show just how divided America has become over the future of health care reform.
U.S. Republicans have recently been pushing for bills backed by President Barack Obama that are intended to reform the $2.5 trillion health system to be to be ditched, meaning the process would have to start from the beginning.
According to a Washington Post/ABC News poll this week, two-thirds of Americans want to see Democrats and Republicans cooperate to pass comprehensive health care reform. In fact, 80 percent backed a ban on insurance company limits on people with pre-existing conditions, while 72 percent supported employers being required to pay for health insurance. However, 60 percent said that current legislation in the Senate and House bills was too complicated, while roughly the same number were concerned with the bills' costs. |
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