The Fed Tries Boiling the Frog
If you put a frog in a pot of water and gradually turn up the heat, the frog will sit there until it boils to death. If you toss a frog into an already boiling pot of water, the shock…
Our Mountain of Silver
When the Spanish explored the new world in search of riches, they eventually reached what is now Bolivia and found a veritable mountain of silver. The flow of gold and silver to Spain from Cerro Rico (pictured) and other mines…
COVID-19’s Creative Destruction
“Creative destruction refers to the incessant product and process innovation mechanism by which new production units replace outdated ones. Over the long run, the process of creative destruction accounts for over 50 per cent of productivity growth.” – Joseph Schumpeter,…
Executive Order 14036
On July 9th, the Biden Administration issued Executive Order 14036, “Promoting Competition in the American Economy. It takes a “whole of government” approach to improve our free market capitalist system. Citing the trust busting of Teddy Roosevelt and the New…
A Return of that Other Bubble?
I was working on Wall Street during the crash of October 19, 1987, when the Dow dropped 22% (or about 7,000 points in today’s market). That evening, traders gathered at Harry’s Bar to commiserate. One of the old timers pulled…