Read more about the article Why am I not surprised?

Why am I not surprised?

I’ve been saying for weeks, in various conversations, that one reason  the “crisis in confidence” has transformed fear into anxiety, is the Fed’s feckless attempts to “cure the economy”. The initial bailout plan stalled as cooler heads insisted on accountability and a clear plan of action, but the tide of uncertainty washed it ashore in some vague $750 billion bailout.

The stated intention was to buy toxic mortgage securities to relieve the liquidity crisis. Many of us were dubious in the ensuing days and weeks because the markets did not react favorably to the bailout. In addition to the history of failed government programs, my skepticism was fueled by the shortsighted decision to let Lehman fall, the fact that AIG burned through its $85 billion in a few weeks and needed $40 billion more and the surprise, at least to many, of the overnight fall of Washington Mutual.

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Read more about the article Bar Stool Economics: Explaining our Tax System

Bar Stool Economics: Explaining our Tax System

There’s a parable that’s been kicking around for years that I ran across recently and wanted to share with you. I haven’t seen it in years but it’s an insightful parody of our tax system with a golden nugget of truth at its core.

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Suppose that every day, ten men go out for beer and the bill for all ten comes to $100. If they paid their bill the way we pay our taxes, it would go something like this: (more…)

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