Month: October 2017

The Bear’s Lair: Trump tax reform won’t goose growth

President Trump’s proposed budget justifies its potential $1.5 trillion increase in the Federal deficit over ten years by claiming it will increase the anemic U.S. growth rate (thereby paying for itself). There can after the third quarter figures released Friday be no question that the U.S. economic growth rate has increased under Trump, with his […]

The Bear’s Lair: Trade and immigration need garden fences

“Good fences make good neighbors” wrote Robert Frost in 1914. Those who have lived in both British and modern American suburbs can agree. High fences are not ideal; you can’t talk to people across them. But nor are a complete lack of fences, which allows gangs of neighborhood kids to race across your garden every […]

The Bear’s Lair: Mississippi Company Economics

We have seen today’s economics in action before. Not in the 1720 South Sea Bubble – that was a simple stock market frenzy, similar to that of 1999, with a debt conversion scheme buried in it, but no excessive leverage. However, the almost exactly contemporary Mississippi Company/ Banque Royale scheme, devised in Paris by the […]

The Bear’s Lair: Better invest in a horse

Britain intends to ban the purchase of internal combustion and diesel engine cars in 2040, hoping to make everyone switch to California, China and France all have similar schemes in place. These government decisions naturally provide yet another implicit subsidy to Tesla Motors (Nasdaq:TSLA) whose first quarter’s production of its latest “mass market” model […]

The Bear’s Lair: Konrad Adenauer would despise Merkel

Angela Merkel won most votes on September 24, but her certainty of leading the next government with only 33% of the vote, a fall of 8.6%, is a sad commentary on proportional representation voting systems. Calls last year for her to be appointed “the savior of Europe” or “the leader of the free world” now […]