Archive for October 6th, 2008

The End of a Disastrous September

Andy Spero | October 6, 2008 | 0 Comment(s) |

One of America’s largest companies had a disastrous September, and it was touch-and-go there for awhile.  A company that some thought too big to fail, failed miserably. 

As we have all seen, when a gigantic company on the coast suffers, even from self-inflicted wounds, it can negatively affect all of us in the fly-over.

There were clear warning signs in August.  In fact, we wrote about them, but it was too little, too late, and the metaphorical train wreck occurred.

Despite our near-Libertarian stance on economic issues, we were prepared to call for… Read the rest

The Role for Survivalists and Depressives in Uncertainty Management

Andy Spero | October 6, 2008 | 2 Comment(s) |

We think that the current turmoil in the markets provides an atmosphere for independent thinkers and adviser such as ourselves to gain some attention (and more clients) by commenting on current issues and by offering free and useful advice, especially if said advice is difficult to implement without us.  For that reason, we’re in the middle of writing a few longer posts about a variety of topics related to the ongoing financial crisis.

One of those unfinished posts, ”Hedging the Pennywise and Pound-Foolish Way,” deals with myopia and tunnel-vision, and it is the impetus for this post. … Read the rest

Be Careful What You Wish For!

Andy Spero | October 6, 2008 | 0 Comment(s) |

Wealth transfer or wealth destruction?

It’s Not Looking Good.

We’re trying to carefully avoid our own Narrative Fallacy, but it is very difficult to avoid the temptation. Instead, we’ll cop to the lesser plea: rebuking conventional wisdom’s own fallacy that we heard for the past few weeks.

Last Monday evening, we heard from any number of sources that stock prices fell because the U.S. House of Representatives failed to pass the first financial bailout bill.  The S&P 500 index dropped almost 9% that day.

Last Wednesday the U.S. Senate passed its version of… Read the rest

Planes, Trains, and Automobiles and Banks and Farms and States…

Andy Spero | October 6, 2008 | 0 Comment(s) |

…are some of the different industries and entities to request and receive large federal subsidies in recent times.  Talk about corporate welfare!

Did the reader happen to notice that when the government’s bailout of the financial industry was (justifiably) stalling early last week, its bailout of the auto industry was moving ahead as effortlessly as a luxurious German or Japanese car?  As we recall, the auto package included $25 billion in guaranteed, low-interest loans? 

The stated purpose of these loans is to provide domestic firms with another opportunity to retool to produce more… Read the rest