More Freaking Nuclear Power Please?!

I don't want nuclear power.

I want FREAKING nuclear power.

Everything is better when it's "freaking."

I want some ice cream.

vs.

I want some freaking ice cream!

I want to play some X-Box.

vs.

I want to play some freaking X-Box!

So while we do have more nuclear power than we did in 1973, shouldn't all of the coal in this chart be replaced with nuclear power?


I want to know where the environmentalists are on this since global warming is obvious a bigger threat than nuclear waste.

Rents Inevitably Drive Property Prices

The value of an asset is what you can squeeze out of it, not what you can sell it for.

This is why I always recommend to my students that you look at dividends, not capital gains when looking at stocks. And is why I recommend that you look at rents when looking at property, not because the house is painted a nice color or is near a Starbucks.

However, this howdy fine chart from The Economist is interesting in that it not only shows this relationship between rents and property prices but shows you nearly a decade of decreasing property prices as rents were decreasing as well.



Fortunately for the US and other housing bubble areas rents are not decreasing, but rather increasing or at least staying stable. The question is how long of a delay until rents again drive prices back up.

The Latest 2007 Corrption Scores

I think the US will becoming more progressively red/orange as time goes on.

Note, Chile (ahem) the most capitalist nation in all of South America.

The Economics of Stripping

Who knew?!

You Will Visit Political Calculations

A friend forwarded me this chart showing the percent chance of recession from day to day for the past four years or so.

It's from the web site Political Calculations.

And it's one of those web sites where you'll lose yourself for about 3 hours because of all the cool and different things you can calculate based on some models he's programmed;

Chances are your marriage will end in divorce

Chances of recession

And an outstanding model on the S&P 500

So go have some fun at Political Calculations, if for any other reason to calculate your chances of divorce!

Proof The Socialist 70's Didn't Work

YIKES!

"Great Society" my left foot!

Not Another Baby Boomer Drama

Despite the star power and all the hype, I predicted that Lions for Lambs would fail. And the reasons are many, but primarily two;

1. It's just isn't that great of an idea for a movie. People don't want to watch another movie thinly disguised as political commentary on the war. They get that everyday in the media.

2. I don't think the baby boomers that are now currently heading up the movie divisions in Hollywood, as well as Robert Redford, realize that their time has come and is starting to enter the "gone" stage.

Other generations, whose purchasing power has been increasing as we've entered the labor force really don't know or give a damn who Merrill Streep is. While she may have gained some notoriety in some 1970's movies, she, like Robert Redford are has beens. Not that they're not great actors, but over half the population associates closer to Tom Cruise than Merrill Streep. And seriously, the last movie I liked that had Robert Redford in it was Butch Cassidy and the Sundance Kid (which I think is the last NON-political movie he made).

Thus you have a lame premise, actors that are not timeless like Cary Grant or Harrison Ford, heading up what is essentially a political commentary.

Oh goodie! Let me get in line with all the other AARP members to shell out $9 to be bored off my ass.

And you don't have to believe me, just look at the numbers. American Gangster which is palatable to the masses is smoking Lions for Lambs, and American Gangster is in its second week.


the whole point is that the general American population, boomers, x'ers, y'ers or the Greatest, don't want to pay to be lectured to about politics, especially from the likes of Redford and the only people that are going to go see it are people who already agree with the film's political premise. And that if the big time Hollywood power brokers that be want to make big time bucks, they better realize that The Rolling Stones at the Super Bowl, Rambo XXIII, and Lions for Lambs no longer appeal to the masses for (I know this will hurt some of you)...

they're no longer cool.

Free Swan Blog...and Find Yourself a Husband

As some of you know my buddy Pete Swanson was sent to Iraq, but what I didn't know was that in Iraq blogger is blocked. Thus I got an e-mail from him asking me to make a post for him, which is the least I can do. So here is his post;

Banned, Challenged, and Oprah's Book Club

One of my favorite topics (some would say obsession)
is the American Library Association's "Banned Books
Week."  Read samples of my work

here
http://swanblog.blogspot.com/2004/09/banned-challenged-and-assigned-books.html

and here.
http://www.scsuscholars.com/2006/07/book-ban.html


So I was surprised to read this story
http://www.startribune.com/384/story/1534640.html

about Oprah Winfrey removing _The Education of Little
Tree_ from her recommended reading list.

"I am surprised, of course, that Winfrey would
recommend it," says Lorene Roy, president of the
American Library Association. "Besides the questions
about the author's identity, the book is known for a
simplistic plot that used a lot of stereotypical
imagery."

Excuse me ALA?  Why aren't you condemning Oprah for
"banning" a book by a guy who wrote segregationist
speeches for Gov. George Wallace?  Does the ALA
believe that only concerned parents and taxpayers can
be guilty of book banning?

Blogger is still blocked in Iraq.  Where is the ALA
when we really need them?  Free SwanBlog!

On a side note ladies, Pete is not only a blogger extraordinaire and kettle bell lifter, but a major in the US Army as well as a professional corporate attorney, debate coach for youths, and solid hard working conservative. He also happens to be single, which to this day is the 8th wonder of the world.

Comeuppance

I like the word comeuppance. It's fun to spell.

Sorry I haven't posted more regularly, been busy with the contributing to GDP thing.

Will You Women PLEASE Explain This to Me?

Doesn't matter if she's short or tall.

Old or young.

Blond or brunette.

Can somebody out there please tell me why it takes women longer to get out of the car than men?

Every time, no matter who it is, I park the car, turn off the ignition, open the door, step out, close the door and by the time I accomplish all these tasks the girl is still in the passenger seat, dilly dallying about.

And so I wait, patiently, for the girl to finally open her door and get out. And it's not that they're putting on make up or powdering their nose in the mirror or gathering their things, they're just sitting in the car. Nor is it them waiting for me in some bygone era day of chivalry to walk around and open the door for them. They're just sitting in the car.

I have things to do, places to conquer, items to buy and heaven forbid I have to go to the bathroom, because I have to wait for a solid 5 Mississippi count before they're out and ready to go.

Theories? Hypotheses? Anyone?

American Gangster

So I saw American Gangster last night and it hands down is one of the best films I've seen in a long time. However, American Gangster is more an appropriate title than you might think in that Frank Lucas (the gangster and now my new favorite anti-hero) is truly "American" in his entrepreneurship.

The whole movie is about economics and how Frank, who I doubt had his degree in economics, intuitively knew more about markets, supply, demand and business than most Harvard MBA's.

Most impressive was he was probably the first globalization drug-dealing pioneer shopping around the world for the best price of heroin, which landed him in Vietnam. This got him the goods at a mere fraction of the cost it was costing his competitors.

Also impressive was how he immediately established a brand name (Blue Magic) for the heroin packing it in little blue bags and didn't cut the heroin with flour or what have you. It was 100% pure and at 50% the price, which made it an instant hit on the streets. In one scene he even stops in at one of the dealer's club who had been diluting Blue Magic, repackaging it and then selling at as Blue Magic keeping the spread for himself. Rips him apart, not for trying to make a buck, but for destroying a "brand name." He says, "Pepsi is a brand name. Blue Magic is a brand name."

Throughout the movie, though I doubt the writers intended it (I think it was just how interesting this Frank guy was) lessons in economics are abound. There is supply chain management. How do you get the dope from Vietnam to the states. There is competition from other mafias and dealers resulting in cartels and monopolies. Quality management and insurance. Labor negotiations and, ahem, "working conditions."

So for all you educating economists out there, that seem hell bent on making the study of economics seem boring and dreaded by all college freshmen, do them and yourselves a favor. Instead of teaching from the book, have your students watch American Gangster. They can only learn so much from text books, they can learn a lot more about economics through the drug trade.

Old School Charts

This I found interesting because it shows you just how much monetary policy has changed since we switch to a fiat money system. I curious if any economists out there had studied the fluctuations between silver and gold and the supply levels of each and how these values played themselves out in the currencies (click on it to enlarge).

The Captain Reminds You To Vote

You may not think it's a big election, but just a friendly reminder this is where the school districts pose levies to raise more money for themselves, usually under the guise that it's "for the children."

And so I find it my patriotic and American duty to point out that more money does not equal better schools;

http://www.nces.ed.gov/surveys/pisa/pisa2003highlightsfigures.asp?Quest=1&Figure=9

http://captaincapitalism.blogspot.com/2007/10/for-last-time-more-money-does-not-equal.html

http://www.ed.gov/about/overview/fed/10facts/edlite-chart.html#3

http://captaincapitalism.blogspot.com/2007/02/more-money-does-not-equal-better.html

Remember, voting no doesn't mean saying no to the children. It means saying no to the teachers union.

It Feels SOOOO Good!

If you ever were foolish enough to think that the "big wigs" over on Wall Street were any more intelligent or brighter than you are, think again. The only difference, LITERALLY the only difference between the average American Joe and some high flying big time banker is that the banker is connected to the nepotistic daddy's boy network and has no qualms about lying, yet has no real skills.

Sleep well tonight knowing they're having their comeuppance.

http://online.wsj.com/article/SB119422328485282002.html?mod=home_whats_news_us

http://biz.yahoo.com/ap/071104/citigroup_ceo.html?.v=19

http://dailycamera.com/news/2007/nov/03/banker-commits-suicide-bestbank-founder-edward/

Maybe Citigroup would consider hiring outside their little incest breeding grounds?

Just a thought.

Whole Mess of Charts

I usually end my day late at night at the bar and because my schedule is somewhat hectic, I don't get around to reading The Economist much. So I bring The Economist into the bar and am able to read up on it there. Of course this draws attention, rolling eyes and some of the younger staff claim I shall never get a girl by reading The Economist at a bar. Regardless if I see an article or chart I like in The Economist I rip it out and save. Now that the Captain has one whole day off, I've decided to clean and came across a bunch of old articles I ripped out and figured it would be a waste to just throw them away
without posting the charts, so here they are;

Just to show you the level of the liquidity crunch that has occurred, I think this is the best chart that demonstrates that, instead of people trying to explain it via words;



I don't know how many times I have to beat the drum on this one. When ignorant fools come in and tell me that corporations are all powerful and own everything, then please tell me why they haven't exercised their power to lower their own tax rates here in the US? Also, gee whillikers schucks howdy, imagine that Ireland is at the bottom again. Why, oh why, does Ireland keep growing so fast?



I thought it was bad in the US. Remind me not to move to Switzerland...then again, I don't think the Swiss has the same subprime culture we do here in the US.



Again, how much more empirical proof do you need that capitalism works?

Top Performers, Top Pay

There's a concept, paying presidents and prime ministers based on the performance of various economic metrics. Of course Ireland's pay is fixed, it's just coincidence the best performing country is paying their chief the most.

The Not Efficient Allocation of Resources

How many 529 plans could be afforded with this?

Your Economic Chart of the Day

I had a theory that for lack of a better term I called "Mold Theory" where money is akin to bread. And if you have a social ailment be it crime, poor education, etc., if you throw money at it, it's like throwing bread on mold. All you're going to get is more mold. And I highlighted this by comparing government spending on social programs versus the most basic form of social ailment, crime;

But another interesting example of "Mold Theory" was found here.

Apparently the more aid that is sent into Palestine, then the more homicides there are.



I'm trying to think of a third variable that would cause aid to go up and then a year later cause homicides to go up, because I'm 50/50 on the aid causing the murders, but it wouldn't surprise me.

I'll Say It Again for the Cheap Seats

One of my favorite movies is "The Last Boy Scout." Damon Wayans is getting grilled by the cops about the location of Bruce Willis (Joe Hallenbeck), to which he responds;

"Look, I'll say it again for the cheap seats...I DON'T KNOW WHERE JOE HALLENBECK IS!!! That's my statement! Write it down and shove it up your ass!"

And many times, I feel the same way. When you have something that is so true, so basic, so simple, not even an issue of debate; the sky is blue, the water's wet, women have secrets, I don't know where Joe Hallenbeck is. Yet the forces that be want a different answer even if it isn't true. So I'll say it again for the cheap seats;

People, largely, vastly, do not care if you are a woman or otherwise minority running for office. They care about your stance and your abilities and what you stand for. This is why Pelosi, Feinstein and Boxer are not succeeding;


And why Bobby Jindal won.

Additionally it shows that Republicans, capitalists, libertarians and other right minded, fascist goose stepping types are truly the ones that are not racist, because we judge people based on merit, not the color of their skin or their gender.

Regardless, I'd just like to see the same chart for Harry Reid.

Was Surprised with These Stats

I figured an interesting chart would be the number of houses per person in the US to get a gauge as to how much inventory would have to be sold off to get back in line with historic averages. But the data surprised me in that houses per person, while near the peak is not at a record, nor terribly out of line with the past 15 years.


I thought that maybe the definition of a "house" according to the Census Bureau would mean only single family homes and not include town homes or condos, but after looking up the definition on the report it does.

This runs contrary to the bevy of other statistics out there that measure the supply of housing, namely "month's supply." But it reminded me of what my realtor pointed out to me one time, that "month's supply" is the current inventory of houses for sale divided by the previous month's sales, resulting in how many months it will take to sell out the current inventory. And while everybody focuses on how much housing inventory is sitting on the market, not a lot of people look at the denominator of the formula which has been precipitously dropping.



In other words, "supply" as we traditionally have measured it has gone up, not so much because there is a lot of new housing being built (though that is certainly the case) but because sales have dropped so much, decreasing the denominator of the formula, thereby increasing the "supply" of housing. Meanwhile relative to the population, the current housing stock of the country is not terribly out of line.

This leads me to believe that my realtor is right on another point. That when housing sales recover, even modestly, this will have a dramatic effect on the month's supply of housing and the housing market, when it does, will swing back to a balanced market rather quickly.

That is of course assuming we avoid a recession. Heh.