America is Bankrupt and Being Repossessed
So far in this presidential election cycle I have seen both Gary Johnson and Ron Paul bluntly declare that the most serious problem we faced as a nation was that we are bankrupt. After hearing this comments I started reflecting on the nature and effects of bankruptcy,...Obama’s Jobs Plan: Economic Destruction Becomes Policy
Once again, a professional politician who believes that wealth comes from spending borrowed money has abused the patience of our nation and proposed another mechanism for wasting an enormous amount of money on a vaguely defined program which will accomplish nothing of...
On National Debt, Default is Inevitable
Much attention has been focused on the size of the national debt as a whole; roughly $14.4 trillion. That number is astonishing, but the sheer size of the debt actually hides the true horror which is in store for the economy and future generations. The debt has many...
The Failure of Stimulus
Imagine a plot of land in the desert, consisting only of mesquite scrub and dust. If you assembled a system of sprinklers on this desert land, and ran them heavily enough, you could make the desert green with grass, corn, or even water loving willow trees. But then...Supply and Da Man
U.S. markets closed off today, while foreign markets ended generally positive. A bright spot in the US economy was the release of new home sales, which were estimated to be up 7.3% in April, to 323,000 new homes sold. This represents the fourth month in a row of increasing new home sales, but we're coming off a dismal low. In 2005, 1.4 million new homes were sold.
The housing market reflects a classic supply/demand equation. The supply of housing far outstrips demand, and with a glut of foreclosed homes still in the market, the housing market is unlikely to return to 2005 levels for several years.
The markets seemed to be more concerned with the nation of Greece's ability to service it's debt. Keep in mind that about the only difference between Greece and the United States is 270 million people. Investors have yet to figure that out.
Chrysler today repaid $7.6 billion in government loans to the United States and Canada. Perhaps this will [...]
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