Posted by
Doug Wolkon on February 21, 2008 at 3:47 pm
Given the energy transportation costs, nasty petroleum-based containers, and cost of waste, it is inevitable that well-filtered municipal water distributed out of locally recycled glass (e.g. wine bottles from local restaurants) is a gold mine waiting to happen. Continued »
Posted by
Doug Wolkon on February 15, 2008 at 1:06 am
Why can I purchase and finance a flat screen TV (no payback) but not a Solar Panel (20 year payback). Lets please stop talking about “Subprime Mess” and start talking about Renewable Energy Mortgages. If unemployment arrives from the slowdown of this housing boondoggle, we (GenX’ers) better be ready to take advantage of all the free labor…
I am fearful of the fact that so much of our labor is still currently employed in non-growth industries such as housing and auto; as the only industry in the world today that is experiencing net profit growth is renewable energy. Yes gold and food commodity prices may be going up (raising “GDP”), but that is a function of trying to get more value out of less resources, otherwise known as inflation. They don’t provide net value growth such as renewable energy. Think production, not consumption. Continued »
Posted by
Doug Wolkon on February 14, 2008 at 3:14 pm
Subprime is a fancy word for too much debt. Adam Smith would actually say that housing over and above shelter has no utility value. If that is true, we are in for some serious additional write downs (think second homes).
On another note, Subprime could have worked if the loans stayed true to their risk and were made at “loan shark” type rates (5% “money-down” should have warranted a 20% rate; instead we were lending it at 7-10%). As a result, we were only realizing less return on a greater expense in the form of lower and lower investment rates (Menger, Say, Smith, Jevons and others), but more risk. Continued »
Posted by
Doug Wolkon on February 11, 2008 at 10:40 pm
Any derivatives of $1 as currency increases our financial service costs (i.e. in the form of complicated accounting and just plain time to figure out the math at time of purchase). Economically speaking and unfortunately to all you labor, it allows labor time to be denominated down as math, not value. Continued »
Posted by
Doug Wolkon on February 10, 2008 at 12:11 am
With the deterioration of credit markets around the world, a unique “cash crop only” such as marijuana becomes more valuable or precious. With marijuana’s supply and demand more closely linked as a result of pure competition, the inefficient financial services cost (i.e. inflation) associated with other consumables are thankfully (for potsmokers) avoided. Continued »
