Read more old books.

Oct. 31 2008

Read all of Robin’s post here.

“Books, at least the right sort, have the potential to keep us sane by giving our lives a larger context than our puny problems and preoccupations. They open for us other worlds which then enrich our own.”

For a few dollars you can download an excellent discussion on the reading of books from the Highlands Study Center.


Why one professor is leaving.

Oct. 31 2008

Worth reading also here.

“No, my troubles with this treasured profession are both broad and deep, and they begin with a fervent belief that most of today’s college students, especially those that come to college straight from high school, are unnecessarily coddled. Professors and administrators seek to “nurture” and “engage” and they are doing so at the expense of teaching. The result: a discernable and precipitous decline in the quality of college students. More of them come to campus with dreadful study habits. Too few of them read for pleasure. Too many drink and smoke excessively. They are terribly ill-prepared for four years of hard work, and most  angerously, they do not think that college should be arduous. Instead they perceive college as an overnight recreation center in which they exercise, eat, and in between playing extracurricular sports, they carry books around. If a professor is lucky, the books are being skimmed hours before class.”

What me worry?

Oct. 10 2008

Stay calm folks, no reason to panic here, eh?

How low will the market go?

Oct. 09 2008

My very scientific analysis of why I think the Dow will be at 8000 when it stabilizes. I would expect to go lower than this for a while, maybe 6500. Of course there are still plenty of opportunities for the govt. to make things worse.

Mish says “Global Recession Headed Our Way”

Oct. 08 2008


The world is heading for a global recession and a sure bet is that it will be blamed on a subprime crisis in the US. The reality is the greatest liquidity experiment in history is now crashing to earth.

The root cause of this crisis is fractional reserve lending, and micromanagement of interest rates by the Fed in particular and Central Banks in general. The Fed started the party by slashing interest rates to 1%, but Central Banks everywhere drank the same punch to varying degrees.

The Greenspan Fed lowering interest rates to 1% fueled the initial boom, but like an addict on heroin, the same dose a second time will not have the same effect. The Fed, the ECB, etc. could have slashed rates to 0% today and it would not have mattered one bit.

The reason is simple: There is no reason for banks to go on a lending spree with consumers tossing in the towel, unemployment rising, and rampant overcapacity everywhere one looks with the exception of the energy sector.

Consumers are tapped out, not just in the US, but in nearly every country on the planet. We had our party, and a fine party it was. However, the party is over and the bill is now past due. The price is a global recession. That price must be paid no matter what Central Banks do.

Causes of the Crisis

Oct. 07 2008

George Selgin at WVU on the Crisis.

Watch here (seems to require Internet Explorer)