Saturday, October 29, 2005
Wednesday, October 26, 2005
Thank you for setting a price floor
Monday, October 24, 2005
Bernanke named new Fed chair
Friday, October 21, 2005
What's the deal with inflation?
Wednesday, October 19, 2005
Are publics going private?
Tuesday, October 18, 2005
Black gold in Kentucky, at least at these prices
Did you know there are over 12,000 oil wells in the state of Kentucky alone? Old oil wells that were not profitable when oil was around 15 bucks a barrel are now being tapped as the price
makes it affordable to pull oil from the ground. Drillers are using water as a means to bring it up..... Wells that are producing about 30 to 50 barrels a day are being pumped in the southern part of the state. These wells were abandoned back in the 80's but now are producing big bucks for small investors.
Monday, October 17, 2005
Everybody loves Mikey, or do they?
Friday, October 14, 2005
Hey, kid, try some of this...
Thursday, October 13, 2005
If ain't broke, don't fix it
More on the Laureates
Hat tip to Dr. Strangelove
Wednesday, October 12, 2005
A good Pareto Improvement is hard to find
We'll make them an offer we know they'll refuse
Monday, October 10, 2005
Oil and the macroeconomy
My own interpretation is that energy disruptions only start to matter a great deal for the economy when utilization rates of other factors of production besides energy are observed to adjust. For example, in deciding to cancel flights, the airline is not just using less energy but also likely laying off workers. A typical pattern in the above episodes was that consumers suddenly became very apprehensive following the supply disruptions, postponing big ticket purchases such as automobiles. As automobile sales declined and workers were laid off in autos and the industries that sell to the auto makers, further cutbacks in spending by those affected led the economy into recession.
So where do we stand right now? In response to the rapid run-up in gasoline prices in August and the devastation from Katrina, the University of Michigan's index of consumer sentiment fell from 96.5 in July to 76.9 in September. Consumption spending fell 0.5% in August, with sales of many SUV's down 50% in September compared with the year earlier. And today Delphi, the largest U.S. auto parts supplier, filed for bankruptcy.