70 Words

Politics and Pipelines

06/05/2013

In an upset, the British Columbia Liberal Party narrowly won re-election over the left-leaning New Democratic Party. Importantly, the biggest plank in the Liberal’s platform was backing pipelines to transport oil and gas from Alberta through BC to the Pacific…

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Disappearing Inflation

06/04/2013

Adding to the low inflation environment we’re in, is Japan’s central-bank bond buying. By reducing the value of the Yen by about 20% in just a few months, it has made buying Japanese cars and other Japanese goods cheaper. And…

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Deductible Instability

06/03/2013

Because interest to bondholders is tax deductible, while dividend payments to shareholders are not, lowering the corporate tax rate will reduce the incentive of all corporations including banks to raise capital by issuing debt. Assuming the top corporate tax rate…

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Delicious Daddy

05/31/2013

The Friday File: While female spiders are well known to eat their suitors following intercourse, the question has always been why. Turns out, spiderlings born of females that eat their partner have a 48% of survival while spiderlings born to…

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Chinese Pork Purchase

05/30/2013

Shuanghui International Holdings’ purchase of Smithfield Foods for $7.1 billion, including debt, will be approved by federal regulators. This is because the relevant regulator, the Committee on Foreign Investment in the US (CFIUS), only blocks deals involving national security. And…

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Bearable Budget Battle

05/29/2013

The budget deficit is falling rapidly and is now projected to be $642 billion, or 4% of GDP, in FY 2013. It was projected to be $200 billion higher just three months ago. This improvement will delay the next debt…

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Bet Your Fannie

05/28/2013

Including a one-time $50.6 billion adjustment, Fannie’s Q1 income was an amazing $58.1 billion! Even excluding the $50.6 billion, its ordinary earnings of $8.1 billion were outstanding. Assuming it does that well the rest of 2013, Fannie’s 2013 income would…

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Dry Policy

05/24/2013

The Friday file: Since 1940, raisin farmers have been required to give away a percentage of their crop to the Raisin Administrative Committee. The RAC annually decides how many raisins are needed and confiscates the rest. In 2003, farmers forfeited…

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Painless Price Rise

05/23/2013

Despite the recent rise in house prices and residential shelter costs comprising 32% of the CPI, rising house prices won’t, in the short run, worsen inflation. This is because the CPI does not look at house prices, but rather the…

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Tax Unreform

05/22/2013

Between Benghazi, the heavy-handed AP data grab and the IRS fiasco, any tiny window for tax reform has all but shut. While Senator Baucus and Representative Camp, who head up both tax writing committees have 17 months until the next…

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