Category Archives: Economics

Economics

Banks, Capitalism, and Failure

Posted on by

My post on Cyprus generated a lot of discussion. My take is not that what happened in Cyprus was fair to existing depositors, it wasn’t. In essence what I am saying is that capitalism needs failure in order to succeed. Without accountability for bad decisions, capitalism simply cannot work. Since banks have little accountability compared to other business ventures, they tend to blow up in spectacular ways. In the start-up world there is an idea of “Fail Fast.” Meaning you want to try things quickly and see if they work or fail. You want to make changes due to negative Continue reading →

Paul Krugman and His Beloved Deficits

Posted on by

A recent article by Paul Krugman on government deficits was brought to my attention (H/T Ad Orientem): Dwindling Deficit Disorder Krugman asserts the usual about how government spending really is good for us. Put it this way: Smart fiscal policy involves having the government spend when the private sector won’t, supporting the economy when it is weak and reducing debt only when it is strong. – Paul Krugman What a lot of these proponents don’t get, or don’t want to get due to their political beliefs, is expanding government spending often causes a ton of unintended consequences that hurts businesses. Sometimes Continue reading →

Harry Browne’s Books – Re-Issued in Kindle Format

Posted on by

My apologies for not blogging about this much sooner, but it fell off my radar and I was recently reminded. Many of Harry Browne’s books have been re-issued in electronic format for the Kindle and other e-readers. Now you can read his timeless writings in a modern format you keep in your back pocket! Fail-Safe Investing - A finely written simple guide to the Permanent Portfolio. How You Can Profit from the Coming Devaluation - The book that launched Harry Browne’s career in investing writing. Contains a great overview of how modern monetary systems work. You Can Profit from a Monetary Crisis - A Continue reading →