The past week provided clear lessons not just in how central bankers have a limited ability to positively influence the economy but also how they are limited in their capacity to deliver the shortsighted policy actions that investors currently crave. The developments should provide new reasons for investors and economy watchers to abandon their faith in central bankers as super heroes capable of saving the economy.
The employment report released on Friday confirmed that the U.S. ... (more)
Welcome to Capital Account. The CEO of RBS warned about a huge fine facing the bank due to the Libor scandal; meanwhile HSBC set aside $2 billion to cover regulatory problems, including Libor-rigging and money laundering. We often cover regulation violations by the big banks, but today will talk about a litany of absurd small business regulations that could be crushing... (more)
Is a blowout bust coming for high-flying Internet stocks? There was the disappointing Facebook IPO, but many people wrote that off as due to managerial errors at the Nasdaq. But those errors must have persisted, because the stock has been down nearly 40%, reaching a low point. Every talking head is muttering about the problem of how Facebook is going to pay its bills.
An isolated case or a foreshadowing of widespread disaster? If events play out in the way of the dot-com bust of a... (more)
In today's political climate, the more implausible the claim, the more likely it is to stick. One that seems to be sticking now is that government today is small by historical standards and constantly shrinking.
Run that one by the man on the street — looted by the tax man, harassed by police, hounded by regulators — and he will scoff. Now comes the highbrow journalist with a nuanced view to correct him, citing all kinds of complex data.
Welcome to Capital Account. The US economy slowed in the second quarter: GDP rose at 1.5% on an annualized basis according to the Commerce Department. The Wall Street Journal points out that this current economic 'recovery' is the second weakest rebound post World War II. Cue speculation about the Federal Reserve taking more action, or talk of how government GDP number... (more)
In Holland, Mich., a 13-year-old entrepreneur thought he would be able to sell hot dogs and financially help his disabled parents with the purchase of a food cart. Unfortunately, city zoning officials have shut down his business, based on an ordinance that prohibits competition to brick-and-mortar restaurants from mobile food vendors. The Mackinac Center's own Anne Sch... (more)
This could apply to almost every product for adults on the market, if the criteria is will swallowing said product hurt a child, then basically everything should be banned. Notice though, you don't see these people calling for fluoride to be banned from children's toothpaste, toothpaste which is literally sweetened with all sorts of artificial sweeteners and made to taste like candy! In that case, one small warning is apparently enough! - Chris, InfoLib
Welcome to Capital Account. Another day with record lows for the US Treasury, both the 10-year and the 2-year. Could this be the biggest bubble we have ever seen? We talk to famed investor Dr. Marc Faber, Publisher of the Gloom Boom and Doom Report. He joins us from Agora Financial's symposium in Vancouver.
As the global economic slowdown continues, we a... (more)
Over the past 35 years, the number of fires in the United States has fallen by more than 40% while the number of career firefighters has increased by more than 40% (data).
(N.B. Volunteer firefighters were mostly pushed out of the big cities in the late 19th century but there are a surprising number who remain in rural areas and small towns; in fact, more in total than career firef... (more)
Wow, this was absolutely eye opening, now it makes sense why I've been seeing firefighter trucks everywhere on the road where there's a car accident, I'm always expecting to see some burned out automobile but instead it's just a common crash. I never realized they're literally just showing up to make it seem like they're doing something! This is a must read! - Chris
A global super-rich elite has exploited gaps in cross-border tax rules to hide an extraordinary £13 trillion ($21tn) of wealth offshore – as much as the American and Japanese GDPs put together – according to research commissioned by the campaign group Tax Justice Network.
James Henry, former chief economist at consultancy McKinsey and an expert on tax havens, has compiled the most detailed estimates yet of the size of the offshore economy in a new report, The Pri... (more)
Socialist drivel. Not having your money stolen by the government is not "hoarding," most everything these people are doing is perfectly legal, what these socialist control freaks want is a global fascist government where there are no "tax havens" and everyone is looted to the fullest extent. The solution to the "problem" in this article is let everyone move their cash off shore and avoid taxes, not bring everyone under a global fascist state. - Chris
Many readers will be aware that last week in a speech President Obama said "If you've got a business -- you didn't build that. Somebody else made that happen." There have been many comments on this already — most of them I’ve seen have been negative — but I’m still going to add a few words, because I find the comment so troubling.
If the credit for a business person’s success belongs to “somebody else,” who is that somebody else? ... (more)
The 2001 tax relief bill (EGTRRA), drastically reduced the impact of the death tax over the course of a decade, so that it was eliminated entirely for one year in 2010 — a good year to die, joked a number of pundits. The bill lowered marginal rates and increased the applicable exclusion amount, but it also included a provision allowing individuals to carry over exclusion dollars that were unused by their spouse at the time of his or her death. This “portability” measure effecti... (more)
People can't get enough of predictions. There is that basic human desire to know the future and capitalize on it. People especially like hearing predictions that confirm their view of the world. Hearing prognostications that match up with your own makes you feel smart. And in turn, you view the predictor as smart for confirming your bias.
The big question: are we headed for deflation, inflation, hyperinflation, stagnation, stagflation or Obamanation?
