Ezra Klein, reviewing Michael Lewis’ The Big Short, on the financial meltdown: Like the poor, idiots will always be with us. In fact, we’ll frequently be among them. The seductions of group-think, the tendency to trust experts, the incentives for employees to go along with their bosses rather than contradict them and the need to [...]

Those of us who predicted lenders would avoid US Treasuries during the financial meltdown we initially somewhat surprised to see investors flocking to them. It’s the result of a supposed “flight to quality”, and nothing at the time seemed less risky than buying US Treasury bonds, since the Treasury sells its bonds in a currency [...]

Those of us who truly believe in limited government* tend to be simultaneously amused and irritated hearing the folks at CPAC speak of limited government as though it’s a principle they truly support. Yesterday, the Libertarian Party’s Executive Director Wes Benedict, monitoring the CPAC festivities from afar, said some of the things that many of [...]

Seems many Republicans are looking to change their narrative. Just in case there is an actual economic recovery (I’m personally still betting double-dip), they want to start blaming Obama for the deficits and spending rather than the pathetic jobs numbers. To this, Kevin Drum asks: Well, at least we’ve been prepared. If the economy sucks, [...]

Politicians all try to sell spending by underselling the true cost: 1) They determine a plan to spend money, sell it as low spending. 2) Despite pundits claiming it will be much higher than projected, they claim it’s not true. 3) When the spending is actually measured, it’s often higher than pundits’ estimates. We’ve all [...]

When I heard there was going to be a Hayek vs. Keynes rap battle, I was amused. And then I watched it, and realized it’s actually pretty good. Enjoy.

from RJ Matson, NY Observer Hat Tip: Ritholtz, The Big Picture

Just 247 days after topping $ 11 trillion and 414 days since passing the $ 10 trillion mark, America’s national debt is now above the eye-popping level of twelve trillion dollars: It’s another record-high for the U.S. National Debt which today topped the $12-trillion mark. Divided evenly among the U.S. population, it amounts to $38,974.34 [...]

When Ludwig von Mises first arrived in the United States after escaping from Nazi Europe, and pretty much up until the present day, he was essentially ignored by the mainstream economics community in the United States. It was only through the assistance of American businessmen that he was able to get a job teaching at [...]

Obama says that he won’t sign a healthcare bill that adds one dime to the deficit. I hope he’s right about that, because the people who are financing that deficit are a tad bit worried about the prospect: And yet, there was budget director Peter Orszag rushing to a lunch with Chinese bureaucrats on a [...]

From The Economist, Buttonwood (their financial op-ed analyst): This only adds to my worries about the Weekend at Bernie’s aspects of this recovery (and kudos to “Hedge fund guy” who first used the analogy). The Japanese spent much of the 1990s propping up their economy and sticking sunglasses on its face; every time they let [...]

Want a laugh? Well go back one year to this column, and ruminate on whether it could be possible for the author to be any more wrong… There have been 11 recessions since the Great Depression. And we’re nowhere close to being in the 12th one now. This isn’t just a matter of opinion. Words [...]

“Washington is shifting the burden of bad choices today onto the backs of our children and grandchildren, America has a debt problem and a failure of leadership.” — Senator Barack Obama (Ill), 2006 We need to raised the debt ceiling above $ 12 Trillion. — President Barack Obama, 2009.

Does this look to you like we’re headed out of a recession yet?

Here in California, our state decided to offer a tax credit to buyers of new housing construction. Unsurprisingly, $10K in free money gave the housing market a bit of a kick in the pants, particularly new construction. Now they’ve run out of money. And in a complete and utter coincidence, which nobody could possibly have [...]

The spike in car buying has caused automakers to ramp up production (via John Stossel): Many auto industry analysts and dealers expect sales volumes to fall now that the program is over. They worry that many people who took advantage of the program were merely accelerating purchases they would have made later in the year. [...]

Continuing his George Costanzaesque presidency, Obama has decided to reappoint Ben “Helicopter” Bernanke to another term on the Fed. Here’s what Obama had to say: Ben approached a financial system on the verge of collapse with calm and wisdom; with bold action and outside-the-box thinking that has helped put the brakes on our economic freefall [...]

Congressman Jeb Hensarling nails it: H/T: Club For Growth

This morning, we learned that the Car Allowance Rebate System, known more popularly as the “Cash for Clunkers” program was running out of money after only a few days in operation: The government’s “cash for clunkers” program, aimed at boosting stagnant auto sales, is almost out of money, putting its future in question, according to [...]

At Cafe Hayek, a letter to the editor by Andy Morriss to the Wall Street Journal is posted: Holman Jenkins asks “Does Obama Want to Own the Airlines?” (Business World, July 8). I am sure he does not. Rather than own them, the president and his congressional allies want to control the airlines — a [...]