Illinois Financial Crisis Scares General Electric Away

General Electric has no problem with state tampering with the economy when they are the direct beneficiaries of that tampering. We have seen this with their push for the renewal of the Ex-Im bank, and their shameless use of campaign donations to pressure politicians. However, when a government’s tampering with the economy leaves the economy at the point of an impending crisis, GE doesn’t want anything to do with it. The Chicago Tribune reports, “State Pension Crisis Hurt Chicago’s Chances for Read more […]

Chris Christie and the Takeover of Atlantic City

Here’s a campaign video claiming that Chris Christie is at least partly responsible for New Jersey’s alleged economic revival: I’m sure Chris Christie did some good things. As someone who was ambitious for higher office, he would be motivated to provide a legacy in New Jersey. Nevertheless, his record is mixed. Bloomberg reports, After almost five years of piecemeal efforts to fix Atlantic City, New Jersey’s distressed seaside resort faces more drastic measures: the end of its casino Read more […]

Nikki Haley Dreams the Impossible Dream: Republicans Will Cut Spending

I mentioned how Nikki Haley seemed to robotically read her teleprompter. At 5:53 comes a line I only heard at first. I Had to go back and check it on the video because I couldn’t believe she delivered it with a straight face. But she did! the robotic simile didn’t waver as she spewed nonsense all over viewers: If we held the White House, taxes would be lower for working families, and we’d put the brakes on runaway spending and debt. Seriously? The Republicans who gave Obama (and their Read more […]

Puerto Rico Starts Missing Payments to Lenders

Our country’s Greece is still crashing and burning. From CNBC: “In default, Puerto Rico faces ongoing fiscal pain.” Like a homeowner with too big a mortgage, Puerto Rico has finally started falling behind on its payments. And it doesn’t look like there’s an easy way to refinance its huge pile of debt to make it more affordable. Gov. Alejandro Garcia Padilla announced Wednesday that the Caribbean island territory will be able to make most — but not all — of the nearly $1 billion in interest Read more […]

Loans Don’t Help Students; They Make College More Expensive

Whenever there is an economic transaction, two parties have to come to an agreement. The buyer must offer enough money to get the seller to produce and supply the good or service. The seller must be willing to accept an amount of money that the seller is willing to pay. It is often thought that sellers of “valuable” goods can demand any price they want, but that isn’t always true. Food and water are of the utmost importance to human beings. They need both to live. Yet food and drink are relatively Read more […]

Rand Paul: Congress Passed the 1.1-Trillion-Dollar Budget without Reading It

Here is Paul Ryan implicitly admitting the budget process wasn’t done the way the Founding Fathers intended but swearing Congress will change their ways next year. Paul Ryan failed to mention that Congress passed an anti-Fourth-Amendment bill to empower more spying on the American people. The spending bill was obviously a collaboration of Republicans and Democrats against the American people. The best you can say is that many Republicans voted for the bill without reading it. According Read more […]

The Republican-Democrat Alliance: The Common Ground is Money & Debt

The mega-spending bill has passed, complete with the Christmas gift to Planned Parenthood. Peter Suderman at Reason.com gives us a way to understand what has happened: “Democrats and Republicans Team Up to Pass $1.8 Trillion Spending Package.” One way to understand the massive federal spending package is as a compromise between Republicans and Democrats to ignore the deficit. The deal is made of two different elements—a 2,009-page omnibus that folds in 12 appropriations bills and calls for $1.1 Read more […]

Big-Spending Republicans Join Democrats for $1.1 Trillion Spending Bill

Remember the “do-nothing Congress”? Don’t you miss it? The Hill ran the headline, “Negotiators see $1.1T deal in sight.” Bipartisan negotiators hammering out the details of a sweeping $1.1 trillion spending bill see the light at the end of the tunnel. Compromise has come slowly as the sides have haggled over partisan policy amendments as well as a separate package — running on a parallel track — to extend a long list of tax breaks to businesses and individuals alike. But House aides familiar Read more […]

Homeownership Falls under the Obama Economy

People keep talking about a “recovery.” The rest of us wonder what they are talking about. Perhaps a “recovery” means the successful inflation of housing prices. “The value of homes has recovered.” Right. So now no one can afford them. Ryan McMaken addresses the issue at Mises.org: “Thanks, Janet Yellen: Homeownership in US Falls to 25-Year Low.” I do not regard homeownership rates as a proxy measure of economic prosperity. But, in the United States, increasing homeownership has long been Read more […]

CBO: Obamacare Will Discourage More People from Working

The Hill reports more “benefits” of the Affordable Care Act: “CBO: 2 million jobs’ worth of hours lost under ObamaCare.” ObamaCare will force a reduction in American work hours — the equivalent of 2 million jobs over the next decade, Congress’s nonpartisan scorekeeper said Monday. The total workforce will shrink by just under 1 percent as a result of changes in worker participation because of the new coverage expansions, mandates and changes in tax rates, according to a 22-page report released Read more […]

Millennials Will Crash the Economy. Good Job!

The only way a financial bubble can end is to collapse. But the more obvious it becomes that the economy is on an unsustainable path, the more vested interests will try to extend it, making the crash even worse. As a result, even though it is going to be grim, signs that they are no longer going to be able to sustain the economy are actually good news. Did you know that 61 percent of Millennials don’t own one credit card? At his Global Economic Analysis blog, Mish quotes from MarketWatch: Read more […]

Former GAO Head: Debt is Triple What is Accounted For

I wrote awhile back that Barack Obama doubled the national debt. But I was using conventional accounting. The real debt may be far higher. Thus, The Hill reports, “Ex-GAO head: US debt is three times more than you think.” The former U.S. comptroller general says the real U.S. debt is closer to about $65 trillion than the oft-cited figure of $18 trillion. Dave Walker, who headed the Government Accountability Office (GAO) under Presidents Bill Clinton and George W. Bush, said when you add up all Read more […]