16 November 2009

Why a Clawback Might Be In Order

While a clawback may seem unwieldy, it may be time to reduce moral hazard by taking a way some elements of the financial industries “free ride.”

It may be unappealing to try to mete out financial justice, but it is even more unappealing to continue with the status quo. Is a clawback the right tool to give some negative feedback to the banking industry about their outcomes?

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13 September 2009

A Modest Health Care Proposal

What is the solution to the Health Care issue in this country? It certainly isn’t ignoring it and hoping it goes away.

There are plenty of things wrong with health care that need addressing, however the debate has gone very far away from the issues. It is wrong-headed and counterproductive to try to derail the debate, so lets look at some less discussed options.

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6 September 2009

Is America Still the Land of Opportunity?

Many pundits are advocating a flight from the Dollar. The US is apparently in the midst of a spiral that cannot be averted. Should you be moving your money offshore?

While there are many risk factors to investing in the US right now, there are many risk factors in investing in other countries as well. The picture may not be as clear as some would suggest.

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19 July 2009

Why Everyone’s Wrong About Fixing Health Care

The healthcare debate has gone into the weeds and sanity doesn’t seem to be anywhere in sight. As usual, pontificating and diversion are the order of the day, with rational discourse long ago left behind.

When a system is as broken as the American healthcare system, it can’t be easy to fix and more government isn’t always the answer. At the same time, continuing with the status quo is a recipe for disaster. Where is the middle ground?

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28 June 2009

Can We All Just Agree That Price Controls Do Not Work?

As a preamble to some other discussions, we try to get out of the way any dissenting opinions on the subject of price controls.

Price controls appeal to the anecdotal side of us, there is really very little evidence to support the idea that they do anything other than the exact opposite of their intent.

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21 June 2009

The Problem with Uncertainty

Many revisionists are now taking aim at government reaction during the 2008 economic crisis. Moreover they are indicting the stimulus and the thinking that powers it.

The question however should not be whether the government has done too much or too little, but when it will stop doing things. While the government can act as a stabilizing force more typically it brings uncertainty.

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29 May 2009

Debt and Moral Hazard

While we struggle to try to return to “business as usual” in America, we gloss over how things have fundamentally changed.

The current economic situation represents not necessarily a fundamental shift, but the eventual realization of moral hazard. We’ve rewarded the wrong kind of behavior for too long and lost sight of sound decisions making.

Is it too late to return to sound practices?

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29 April 2009

Why Now May Be the Right Time for Green Stimulus

For those who have accepted the idea that government stimulus is a wise idea, the problem remains of determining what to stimulate. While there are many differing opinions on this, one of the key properties of a desirable strategy is the creation of jobs. While Green stimulus may attract the attention of private investors is it as effective as it’s cracked up to be?

While there are risks with any approach, Green tinged stimulus may provide the best opportunities for maximizing the stimulus dollar. For many reasons, now may be the best time for Green spending.

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23 April 2009

The Difficulty of Investing in 2009

The current economy is a very difficult environment. Competing and conflicting situations make a coherent strategy difficult. Several things make 2009 a particularly difficult nut to crack:

• Asset Class Issues
• Government Interference
• Conflicting Short and Long Term Issues

How can an investor overcome these issues?

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16 April 2009

Is the Financial Sector a Utility?

I am a fervent believer in free markets. More specifically I believe that they, much like Democracy, are flawed but vastly superior to any alternative. As various elements in the world decry the current financial crisis as an indictment of the flaws of capitalism, I wait patiently for them to suggest the proven alternative.

Despite this, I am left wondering if the financial sector is an exception to the wisdom of free markets.

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