06/18/2021
Today

California's Economy Continues to Defy Doomsayers

Matthew Winkler, Bloomberg

Underneath the alarmist headlines is an economic powerhouse.

The Golden State's Progressive Anti-Housing Warriors

Connor Harris, City Journal

Left-wing interest groups are often the fiercest supporters of regulations that make housing in the Golden State so expensive.

What I Would Do If I Were Your Benevolent Dictator

Rob Smith, RealClearMarkets

I was lounging in my Malibu beach house and the University of Alabama cheerleaders were dropping grapes in my mouth……, oh wait, that's a different dream. My bad. In this dream, I was giving a speech on the National Mall. Needless to say the crowd, two million strong, was mesmerized by my mellifluous voice and country boy charm. At first, I couldn't make out exactly why I was there and what I was saying that so captivated the throngs of admirers. As my dream came into sharper focus, I noticed I had these laurel and olive leaves in my hair. Suddenly, I realized that I had just...

How to Use the IRA To Purchase a House

Rachel Hartman, U.S. News & World Report

If you're shopping for a new home, you may be looking for ways to fund the purchase. Taking out cash from a retirement account such as an IRA might be an option in some cases. However, before you withdraw money from an IRA, you'll want to evaluate the short-term and long-term consequences. Use the following criteria to help decide whether to use your IRA to buy a house.

Small Business & Labor Should Gang Up on AMZN

Stacy Mitchell, New York Times

Labor and small business were once natural allies against big business. They should join forces again.

Is This the Final Corruption of American-Style Liberalism?

Jeffrey Tucker, RCM

Is there anything liberal remaining in the word liberalism? It was bad enough when 90 years ago "liberalism" acquiesced to supporting the corporate statism of the New Deal. It was in 1933 that FDR took power and imposed unprecedented control over economic life. That decisive rejection of the free economy in favor of government planning was a big turning point. Not much has changed since then. But backing the egregious lockdowns of 2020 is something that no living liberal intellectual from 100 years ago would have imagined doing. The corruption seems to have taken place in marginal steps. The...

Kill Zombie Programs to Help Balance Budget

Demian Brady, Washington Examiner

President Joe Biden and congressional Democrats are focusing policy efforts on the "tax gap," a hazy estimate of the difference between what taxpayers pay in taxes and the amount the IRS thinks they actually owe.

Conflict Between Free Mkts. & Corrupt Political Econ.

Austin Stone, Law & Liberty

Austin Stone notes the vital difference between free market capitalism and crony capitalism, and why it is central to our rhetorical battles.

Halfway Through 2021, Gridlock Still Rules Global Roost

Market Minder, Fisher

Halfway through the year, gridlock still rules the roost.

The Moment Yellen Moved for 'Greasing Wheels' w/Inflation

Judy Shelton, NYS

The next time you hear a Federal Reserve official intone about the central bank's commitment to "price stability," might take a moment to reflect on how that goal came to be defined as 2% inflation. The 2% number is so ingrained that our monetary

The Dots Are On the Move; So Are Dot Spoilers

Jeffrey Snider, RealClearMarkets

So many dots, so little time. Actually, only a few dots, quite a ton of unearned noise. If we're talking about dots again then that could only mean doing the same thing and expecting different outcomes. Those blotches are simply what policymakers themselves believe that future will look like, probabilities and whatnot. Thinking ahead, moving them around here or there is supposed to convey changes to or from "hawkishness." Yet, we need only go back a few years to re-witness the futility of the exercise. Dots went one way, reality quite the other. And that reality is the Federal Reserve...

Joe Biden Can Still Reduce Drilling on Public Land

Nick Martin, The New Republic

A federal judge ruled against the administration's pause on new drilling leases this week. But the Interior Department still has space to act.

Fed Still Hasn't Found What it's Looking For

Liz Ann Sonders, Charles Schwab

The Fed kept rates unchanged, but updated median projections from the FOMC show two rate hikes likely by the end of 2023.

Intrinsic Value in Passive Indexing

Derek Bergen, Applied Finance

While Applied Finance has long advocated for investors to consider the strategic advantages from incorporating a valuation-based discipline in portfolio construction and stock selection, this study provides compelling evidence that even passive allocations benefit when index weights are formed on intrinsic value characteristics instead of using market cap as a proxy.

Fed to Remain Accommodative, Despite the Dots

Richard Moody, Regions Bank

Will the Fed Sit Tight—or Tighten Policy?

Brad McMillan, Commonwealth Financial

With inflation a concern, what should we expect from the Fed? Commonwealth CIO Brad McMillan says despite the headlines, the Fed will likely sit tight.

May Retail Sales: A Little Context Goes a Long Way

Richard Moody, Regions Bank

2021 Mid-Year Outlook: Fixed Income

Kathy Jones, Charles Schwab

We see the recent plateau in yields as a pause before the next wave higher.

Taper Tantrum 2?

Brian Wesbury & Robert Stein, First Trust Advisors

We Don't Need the G7

Jeffrey D. Sachs, Project Syndicate

The group's recent summit in Cornwall should be its last. Political leaders need to stop devoting their energy to an exercise that is unrepresentative of today's global economy and results in a near-complete disconnect between stated aims and the means adopted to achieve them.

Biden's Tax Hikes Aren't Just For The Rich

Eric Boehm, Reason

And as many as 75 percent of middle income households face a tax increase under Biden's plan, even though the highest-earning households will pay the vast majority of the costs.

Stop Taking Investment Advice From Social Media

Sunniva Kolostyak, MStar

A boom in young and overconfident investors has led to the rise of investment influencers on social-media platforms, but following their advice blindly is not a solid strategy.

The Man Who Warned Apple About China Risks

Jack Nicas, New York Times

Doug Guthrie, once one of America's leading China bulls, rang the alarm on doing business there. He spoke about his time at Apple.

Lebanon's 'Financial Surrealism': Beer Over Banks

Davide Barbuscia, Reuters

Faced with the choice of leaving their savings stuck in the bank or investing them at a huge loss, some Lebanese people are opting to take a punt. For them, it's the only sensible option in a financial system warped by crisis.

COVID Killed the Davos WEF. Good Riddance.

Felix Marquardt, FT Alphaville

The addictions and the contradictions that lie at the heart of the circus that is the World Economic Forum.

The Real Reason Stocks Sold Off After The Fed

Mark Hulbert, MarketWatch

The Federal Reserve was just the spark; the tinder was the excessive bullishness of market-timing traders

Biden's Jobs Plan Will Mean Fewer Jobs

Peter Suderman, Reason

It's a jobs plan that isn't about jobs, and an infrastructure plan that isn't about infrastructure.

How 'Chaos' In Shipping Is Choking The Economy

Greg Rosalsky, NPR

The U.S. trade deficit is hitting record highs — and it's fueled by a surge in demand for imports, mostly from East Asia. On both land and at sea, the shipping industry is struggling to keep up.

The Amazon That Customers Don't See

Jodi Kantor & Karen Weise, New York Times

Each year, hundreds of thousands of workers churn through a vast mechanism that hires and monitors, disciplines and fires. Amid the pandemic, the already strained system lurched.

Do You Have A Right To "Risk It All" On Gamestop?

Emily Stewart, Vox

"If you're trading like it's a game, you're probably going to lose."

Too Many Can't Afford Homes. Here's A Solution

Hakeem Jeffries, CNN

We are calling for funding an additional one million affordable homes, not in 10 years, but in five years, to be included in the pending infrastructure bill.

Fisher Investments on Election-Year Uncertainty: This, Too, Shall Pass

Fisher Investments Editorial Staff, Fisher Investments

Ken Fisher on Nixing the VIX

Fisher Investments Editorial Staff, Fisher Investments

Will Uncle Sam Force Big Tech to Break Up?

Fisher Investments Editorial Staff, Fisher Investments

Shattering the Debt Ceiling Myth

Fisher Investments Editorial Staff, Fisher Investments

The Inflation Surge Appears To Be Peaking

James Picerno, The Capital Spectator

Federal Reserve Chairman Jerome Powell admitted in yesterday's press conference that if inflation runs hotter for longer than it expects, the central bank would react accordingly by adopting a more hawkish stance. But for now, that scenario remains a low-probability scenario, he says.

Speculation is Necessary. Governments Can Help.

Jamie Catherwood, Future

Instead of trying to eradicate speculative manias, we should channel investors' innate affinity for speculation into productive ventures.

How To Prepare For a Long Bull Market

Ben Carlson, A Wealth Of Common Sense

There are tons of books about how to prepare for a market crash. But few to help you navigate a long bull market.

Taking a (Lemonade) Stand for Free Enterprise

Anthony Gill, AIER

Summer is here and with Covid-based restrictions on fun finally receding (we hope), a return to normalcy promises the ubiquitous picnics, softball games, and sidewalk lemonade stands run by kids on their vacation away from school. But wait a minute! Not all those Great American activities may be legal.

Harder Than It Looks, Not As Fun as It Seems

Morgan Housel, Collaborative Fund

Everyone's human, everyone's flawed, nobody knows everything.

The G7 Agrees To Create a Global Tax Cartel

Veronique de Rugy, Reason

It will be no better for taxpayers than oil cartels are for consumers.

Barney Frank Still At The Forefront

Laura Lallos, Morningstar

The former congressman remains an outspoken advocate.
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