Bond and Gold Bubbles

David Malpass writes in WSJ today about the broad bond and gold bubbles. Think about this, Treasuries had the best month (of price gains-meaning yields falling) in over 3 years in the very month U.S. debt was downgraded. As Malpass points out, both gold and bonds have a "fear factor" component and this may account for a large portion of the current price movement.

An Unusual Economy?

Professor Sowell dispenses some wisdom on the economy and uncertainty. He quite correctly notes that the unknown costs of Obamacare are already sending chilling signals to businesses otherwise ready to hire.

State Finances

Barron's has a great cover article with a useful chart comparing the AAA and AA+ state finances. S.C. has the 5th highest Federal spending as a % of GDP at 24.9%. The range is 10.6% (Delaware) to 29.8% (Virginia). S.C. also is in the top handful in Medicaid spending as a % of outlays with 22%. The range here is even wider with Wyoming @ 7% and N.C. with 37%!

The Coming Fannie/Freddie Boondoggle

A brief, concise summary of a really bad idea . Maybe it won't actually happen but several trial balloons were sent last week so it looks likely. More intervention won't help housing finance.

Unintended Consequences (again)

Ezra Klein has an insightful piece about state Medicare cost containment . Just because we think bidding contracts saves money does not make it so.

A Formula for Growth

A sensible article on how to (partially) grow our way out of the fiscal mess in the U.S. Will take an about face in direction but he makes a plausible case. Good reading.

The Rescue that Missed Main Street

Gretchen Morgenson has a very good article in NYT today on the some of the slimy details of the 2008 crisis-era bailouts. The title aptly describes what follows per the new disclosures made public just last week. Late in the article she quotes Professor Edward Kane who says "bailing out firms indiscriminately hampered rather than promoted the economic recovery". That about sums it up.