Posts from ‘June, 2010’

The Profit Motive June 30

Found Mr. Fleckenstein voicing the opinion that S&P earnings and therefore valuations couldn’t be trusted because the financial sector is essentially making up the numbers as they go along.

The Profit Motive June 29 Audio

Following systemic banking crises, the duration of housing price declines has averaged roughly six years, while the downturn in equity prices has averaged about 3.4 years. On average, unemployment rises for almost 5 years.

Debt increased at every level the effect varied from country to country, but a survey by the McKinsey Global Institute found that average total debt in ten mature economies rose from 200% of GDP in 1995 to 300% in 2008.

Nationally 1st time homebuyer traffic plunged 44%, investor traffic fell 9% and existing homeowner traffic slipped 17.5%. Here in California despite the State spending money it doesn’t have to support real estate prices with its own tax credit 1st time homebuyer traffic fell 22%.

The-Profit-Motive-June-28

But what this really traces back to is sustainability and instead of throwing ridiculous sums away on proven failures, said Keynesian economic polices and imperialism, how about trying sustainability.

Been on my honeymoon in Hawaii, hence the lack of posts. While not a big fan of the mainstream media and their cheerleaders, they do occasionally get it right. I have posted repeatedly on these subjects going back a number of years. Mrs. Whitney does a great job summarizing the economy and where were headed. [...]

The Profit Motive June 11