Renewable Energy

It’s All About Renewable Energy

As the Fed continues to “print” more money what is the effect on the economy. Can they “print” their way out of this economic slide by lending more and more money to their friendly financial institutions? “Printing” more money against the same asset base is like an alcoholic having “just one more drink”. Such an attitude eventually leads to another and another…it is a bad idea and only works to “inflate” the existing problem. Continued »

Will Someone Please Count The Money?

So how much paper money is out there anyway. Does it matter that every time The Wizard of Oz (The Fed/government) decides to bailout a financial institution like Bear Stearns, Lehman, Fannie or Freddie, they have to print more and more money. What is behind this printing of money and how do they do it? Continued »

The Fed’s Ego

Starting to get a lot more optimistic about the economic opportunity that lies ahead. The economy’s assets and liabilities are shifting perspective and ownership. It will be forced to act more efficiently. It may feel like it will happen super fast, but it has been a long time in the making. For those who embrace it, it will be fun, but for those who don’t, it won’t. Continued »

A Solar Panel: The Neutralizer

The real reason that oil consumption has slowed down is once again – the housing market. Think about how much less oil is needed to move all those materials (wood, steel, concrete, appliances, etc.) as well as construction laborers for all those houses and condos we were building. All that consumption from our housing construction has come to a stop, and with it the end of a major consumer of oil. The next oil demand decrease is on its way from both China and India. Continued »

Recession Smession

Dramatic unemployment increases in financial services, construction and autos will be the real shoe to drop. Who will pay for all these billions of dollars of writedowns? Oh, I forgot, the Fed has the ability to actually print more food and oil – yeah right, was Bernanke ever taught the first rule of Economics: Land is Scarce.

So how much of our newly printed paper is currently being bought by our social security system – talk about drinking your own blood. The welfare state will inevitably be forced to solve their huge inefficient costs of entitlements and armed forces. Continued »

Subprime is a Fancy Word for Too Much Debt

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 »

Imagine New Jobs

I agree that the Fed is walking right into the markets hands. The Fed rate cut does not have a prayer. Greenspan took all the inflation fighting juice out of the economy in the 90’s while igniting the momentum of debt. In any case, we are all in trouble. Continued »