Keith Hennessy on Bush and the financial crisis.

Keith Hennessy on Bush and the financial crisis.

One of my students asked “How involved was President Bush with what was going on?” I smiled and responded, “What you really mean is, ‘Was President Bush smart enough to understand what was going on,’ right?”
The class went dead silent. Everyone knew that this was the true meaning of the question.

I used to joke about someone explaining the collapse of Lehman to Bush and him asking how big a tax cut do we need to save Lehman?

Bitcoin represents what ought to be the final refutation of the efficient-markets hypothesis

Bitcoin represents what ought to be the final refutation of the efficient-markets hypothesis

But in the case of Bitcoin, there is no source of value whatsoever. The computing power used to mine the Bitcoin is gone once the run has finished and cannot be reused for a more productive purpose. If Bitcoins cease to be accepted in payment for goods and services, their value will be precisely zero.

According to the efficient-markets hypothesis (EMH), which still dominates the analysis of financial markets, this should be impossible. The EMH states that the market value of an asset is equal to the best available estimate of the value of the services or income flows it will generate. In the case of a company stock, this is the discounted value of future earnings. Since Bitcoins do not generate any actual earnings, they must appreciate in value to ensure that people are willing to hold them. But an endless appreciation, with no flow of earnings or liquidation value, is precisely the kind of bubble the EMH says can’t happen.

Quiggin hits the nail on the head with this one. Bitcoin should be called bubblecoin.

“Democracy Has Descended Into Institutionalized Bribery”: An Interview with David Graeber

“Democracy Has Descended Into Institutionalized Bribery”: An Interview with David Graeber

We’re taught that democracy was like a scientific breakthrough. People discovered democracy, as if people didn’t know how to count beforehand. But what you see when you look at the anthropological record, are countless examples of egalitarian decision making.

Anheuser-Busch heir resigns life-long NRA membership

Anheuser-Busch heir resigns life-long NRA membership

The NRA I see today has undermined the values upon which it was established. Your current strategic focus clearly places priority on the needs of gun and ammunition manufacturers while disregarding the opinions of your 4 million individual members.

They get more money from manufacturers. Dues from individual hunters and sportsmen are meaningless to the bottom line of the NRA.