Water policy in California is bizarre. I had no idea how bizarre until Jerry Brown declared his water emergency last week.
With 39 million people living in a semi-arid to desert environment (at least the southern 2/3 of California) doesn’t it stand to reason that at some point water might become a critical issue? A really critical issue? Doesn’t it also stand to reason that the people of California should be priority number 1 when it comes to water, not a politically powerful agriculture sector which only constitutes 2% of the California economy while taking 80% of the water? (Though there are of course apologists for ag.) But the “planners,” like they always do, thought they had the situation in hand.
India has long been mired in socialism. Bureaucracy ran and continues to run through the country’s massive system of governance. As I understand it, to get anything done in India for many years the paperwork had to be done in triplicate and processed a half dozen times. And then one got a new pile of paperwork.
But times are changing. India has opened up quite a bit over the last 2 decades, and it looks like even more light will be shining into the economy soon.
Murray N. Rothbard explains in 3 minutes why it is that when economic downturns happen the government should just get out of the way. Let prices correct, the pain will be short and sharp but then life will go on, typically in a more prosperous manner.
From Paul Singer’s letter to investors,
As a young broker an older quite successful broker told me the same thing. He also said that there was no reason to watch CNBC after 9:30 (the opening market bell) because anything of value for the day which actually found its way onto TV happened before the markets got rolling.
I have found both bits of advice to be right.
You sure can, and lots else besides.
With mobile computing markets for practically everything are much more dynamic and useful for the average person.
And then the obvious question is – “Where do the central bankers get all this money?”
Only a few people think about that, and half of the people thinking about it don’t care that this “money” comes from nowhere. All they care about is the next quarter, the next day, the next tick, whatever helps them through their withdrawal.
The CNBC guys poo poo the report, which is to be expected. David Faber particularly and he is on occasion very good. But the world is feeling wobbly to say the least. Post-2008 wobbly which is pretty wobbly. That the stock market has done as well as it has in the US, even considering all the juice from the Fed is pretty crazy, but a continued run is looking less and less like a prudent bet.
But that’s not new.
Being “pro-market” means being pro-innovation, pro-competition, pro-transparency, pro-rule of law, pro-hard work, pro-efficiency. Being “pro-business” can on occasion mean these things also but typically it does not.
It’s been an interesting if not fun ride up in the markets. Through a 6-year economic slowdown stock markets have rallied and rallied and rallied. Everyone assumes that the Fed is backstopping the market, that it has to for political reasons. So people have piled in even though earnings and economic indicators have been generally lackluster. Sounds almost like “house prices never go down.”
But not quite.
DIY. DIY. DIY.
Once the state gets out of the way people can start finding solutions to everyday problems which were once thought only the purview of the government.
In one respect Marx was right. Economies do evolve. They do develop. But absent the religion of the “state” economies tend to evolve toward solutions. That’s what markets are all about.
The “fairy dust” has kept things going for a long time. Will it continue to work? How long? It won’t work forever. Did it just stop working?
Next week will be fun.
More thoughts on the Pope and capitalism.
Capitalism (free markets and free prices) puts power in the hands of everyday people. Crony capitalism (a form of socialism) puts power in the hands of the privileged. The Pope appears to miss this very important point.
The Fed’s latest stock market bubble is at risk of blowing up.