Sunday, November 30, 2008

Greg Mankiw's Blog: The Next Team

Greg Mankiw's Blog: The Next Team
What would you call a group of economists who are skeptical of regulating mortgage markets, who think unemployment insurance and unions increase unemployment, who say that tax hikes retard economic growth, and who believe that the recovery from the Great Depression was a monetary phenomenon rather than the result of New Deal fiscal policy?

No, it is not a right-wing cabal. It's Team Obama

Cool, finally the nasty blue left frenzy all gone, no more singsong of:

Blue, when you walking left-wing you are being called blue, you have get the blue, now all of blues are gone, so what left than? No one going to sing the blue. No worries, they are always blue somewhere! They used to sing to the blue all the time their picket lines: They sing blue, they made themselves sing blue all the time over again for the overtimes, sick days, rain days, extra time for the blue, blue find themselves no mood to cure themselves as if their born with blue. Blue made you binding and dependency addictive and hopeless being alone, you are bone a freeman die with free, blue is rich powerful, cyclothymiacs control over you. You know blue is mental illnesses not just a mood swing for the overtime extra pay. Eating out our souls from bottom-line, a pervasive wholesome manic bowel! Finally blue find themselves niche market for a positioning for the No-blue-body.

Extra comment: do you think husband and wife working together all the time, sleep together all the time, making love together all time, write article together all the time, wow, they breath together all the time same air? Are they not going to breathe the same air all the time too? What a breathless intoxicative encountering! Gosh how they live not together all the time, the must terribly nice kind each other to death! Young Sun, you are wrong in here, don’t get bugging other people life! None of your business how they live or not live!

Greg Mankiw's Blog: Lessons from the Crisis

Greg Mankiw's Blog: Lessons from the Crisis
In my view, the key to regulatory reform is not trying to predict the future with more accuracy but, instead, making the system more robust so that the economy functions better when the unpredictable inevitably occurs. In other words, our focus needs to be not on what will happen but on what might happen.
Another Kind of Warning System

Suggestion for the “warning system” the women monthly thing. Our body is a sophisticated machine-system. Same as all systems. You see all women, this thing ever since we human existence. Taboo? I don’t think so. It is called PMT or PMS which ever you would like to call it. Average two weeks most women suffer. This is effect on all family and work place too. OK here is, the monthly monster control her system and the warning signs are:
1) Start craving (i.e sweet thing chocolate) so start eating; it is the first stage of warning!
2) Gaining weight, water detention, sore, increase every size in your curve and pumping bit more at a gym or running few more miles, sitting at a sauna, still gaining weight( all in your mind), shiver yourself pinch your waist line, check whether any ounce of fat increase, curse on yourself being a woman. Second stage warning!
3)Start cranky and angry and looking for enemies for attacking, bitching - children and husbands are first good target, they get message and put their monthly armor-plates on ready for First Aid Kit on handy and avoid you like a flea. It is a third stage warning signal!
5) Dark moody, you are become a huge hell rising monster, everyone avoiding you so you go after them, creeping behind them and sudden attack! Saying to them why are you all hate me? Why do you not love me anymore? No you all never love me at first place! Yelling at them, saying they are all ungrateful beasts. They are all bruised and put bandaged their bruised hearts from your beastly attack! Given up on you, made you as a hopeless winner! You know than what might happen in next! It is final stage warning! Ready for blowing up!

Saturday, November 29, 2008

Greg Mankiw's Blog: A Keynesian Moment

Greg Mankiw's Blog: A Keynesian Moment

CONSUMPTION: …“paradox of thrift.” If all households try to save more, a short-run result could be lower aggregate demand and thus lower national income. Reduced incomes, in turn, could prevent households from reaching their new saving goals.
My Interpretation: Uncle Sam goes around put his gun to people heart, saying “SSPEN! baby you spend!, spending is what is the “you do for your country!” otherwise I blow your heartless heart off! Make you cold turkey and put you in my hot heated oven cooked 800000 degree and make you charcoaled scumbag and I eat you bitter sour plum pudding sources! Then I drink your nasty bubblely soul invade your house for Genghis Khan ghost party. Hey you no breeder, life is all
about breeding, what a waste your heated energy! Nature begotten you to breed! What on earth you failed to breed! You are a selfish, lack of empathy, lack of paternity maternity = lack of cupidity, no worries mate, don’t worries! You made this nation no breeders paradise! Failing pure bleedings but increasing only mongrel breeding! Not good enough, especially you IQ of 150 + you failed to contribute increase our national gene pool, so possibility of screwed up our nation’s longevity prosperity, it is deadly sin, you deserve capital punishment for a firing square! But rest of us still worry our grandchildren 8 bed rooms mortgage their fancy sport cars inside our cozy tombstone, hold hand and hand with our old hags, teething skeleton each other face! We will lose our sleep so we have deadly sleepless nights in our cold marble tombstone! Dear my lovely doubly grandchild I could left you my 50000 bottle vantage cellar with 100 bed rooms dewelling with sea sunset view with collection of sport cars with my countless masterpieces, books, orchid and my cello, O yes my muisc my poem, you can easly down load from sky. O I am sorry my dear grandchildren your dear grandpapa worries to death in his grave, plea please forgive me! How I could not shame my gold plated tombstone!

Another thing in here Keynes, he was heroically “practical man” the man of intellectual, it is almost turn out to be intellectual flop, o man where should I go for search my deadly lost soul, I am a soul searcher where is the intellectual soul! I am the last man standing!

Greg Mankiw's Blog: Stimulus for Skeptics

Greg Mankiw's Blog: Stimulus for Skeptics
Porter wrote that the U.S. economy has historically benefited from several great assets: an unparalleled environment for entrepreneurialism, a tremendous infrastructure for scientific research, the world’s best universities, a strong commitment to competition and free markets, decentralized regional economies, and efficient capital markets.

But, Porter continued, these advantages are starting to erode. The U.S. has an inadequate rate of reinvestment in science and technology. America’s confidence in free markets is waning. Lack of regulatory oversight has undermined capital markets. Universities have not sufficiently increased graduation rates. American workers do not have a credible safety net. Regulations and litigation have inflated the cost of business. Most important, there is no long-term economic strategy to organize responses to these problems.

I asked Porter how this short-term crisis might serve as an opportunity to address those long-term problems. First, he said, the Obama team will have to avoid a few temptations: Don’t just try to throw out money as fast as possible to stimulate demand. Don’t spread the spending around too thinly. Don’t try to save jobs that are going to disappear anyway.
---
Porter’s basic message was that President-elect Barack Obama should do nothing in the short term that doesn’t serve a long-term goal.

To which I would add just one idea: Create a network of social entrepreneurship investment banks. These regionally operated semi-public funds would invest in the best local community organizations, so they could bring their ideas to scale.
But sometimes it is hard to follow just ivory tower hype. How can we determine and see the future outcome as we are festering systems today, even if something is looking good but it difficult to predict what is the result looks like down the track 20 years after. Yes certain things concrete things; education health care system…etc, spend money today tomorrow is grow and less unhealthy. But midnight cowboy is not always grantee for his successful bank rubbery for sure!

Greg Mankiw's Blog: Moral Hazard

Greg Mankiw's Blog: Moral Hazard



So when you grow up what would you like to be my little cherub?
O yes I wanna be the Fannie Mae and Freddie Mac!
Why?
So giant so rotten but no-one can do anything about it so powerfully rottenly built, they are all afraid of me doing anything like suicide! They all begging me - "Please don’t do a such thing a self-harm! na-mu-ghansam-bosal!" I am a HOT SPOT! So it is best way to go! For scare everyone off! I am a dungeon-monger!

Greg Mankiw's Blog: Time to Start Christmas Shopping

Greg Mankiw's Blog: Time to Start Christmas Shopping


Amazing skill of a salesman, beware here he come with proven track record of bottom-line achievement! The salesman of the year, reward with breathless encountering his new era! Blockbuster made by a zealous! hour hour by sales figure bulge, great great skill! another reward in here a huge whip! Token of demonstrated his power of sales!

So one day he writes a book abut and is called

The Salesman Of The Day Best Kept Secrets - the 2008 Blockbuster!!

Here is the bit of his mulling:

I commend you, figure - to you to be my wed servant
Your minute is arousing, is glory of my bottom-line
O what a splendors love you show me day and night
Your unsung achievement shows me that you are worthy
I now remember life is all about brainwashing just one fingertip
Not a thing you can proved by what is all this about but
Rather bit of illusion bit of trickery and bit of everything
I here by deliver to you authentic bullshit of everything!
Extract Chapter 8.

Greg Mankiw's Blog: Reallocating Resources

Greg Mankiw's Blog: Reallocating Resources

In our judgment, based on experience elsewhere in American industry, the most constructive role the government can play at this point is to provide a short-term infusion of capital with strict repayment rules that will essentially require the auto makers to sell off their assets to other, successful companies.
Ya Ya! As a non American, understand most American ardent love “American Made” but not all them are healthy for their future. So they have to realistic, and accept that some other foreign companies better performance then their own bone narrowed diseased old hag auto companies. Instead let them feed their own fear lust hunger for money while rotten on their bottom-line. And knelt down lick the Uncle Sam foot that
“ O dear our beloved Uncle Sam your generosity deeply engrossed in our hearts and unshakably fastened as a love token! O our fullness ardent yearning for your sweet kisses for bailing us out for our deadly love sick, more then ever you can imagine we can not sleep we can not eat, We are losing our weight and losing our marbles day by day…. O this love sick how could we tame our desired to be loved by your generosity forever ever! Your marble humble servant of Autos the Three Big Busters!”

Greg Mankiw's Blog: Who are the most exploited workers in the American economy?

Greg Mankiw's Blog: Who are the most exploited workers in the American economy?
Yeah, it is freedom tales, so many things to choice, it says, hay we have problems of thought, problem of choices, well they have choices, choice itself possess adroitness but also made us not equal and flight, order to find ourselves to place in the world too. Well they can just drop sport off, just can go to the class room as a normal, instead of being a player. When you have too much to choose you are trouble so, bit less sometimes better for our mental health and simple life. Attention seekers are all love oneself so much, it is an addiction from their own self made mirror. Why people they don’t appreciate it very much what they have instead looking into other people’s backyard, saying “hello mate your garden much greener then mine! Wanna swap? -- including me

Thursday, November 27, 2008

Greg Mankiw's Blog: Happy Thanksgiving!

Greg Mankiw's Blog: Happy Thanksgiving!



Happy hoppy thanksgiving what a giving thought of thoughtful thanksgiving what a nice warm cozy feathery blanketing thanksgiving!

Scary update: Your neck you will be chopped and defrocked and eaten by a Thanksgiving monster! It is perfect time for these usless ineffective management extremely greedy nasty lairs put their necks on a chopping board and chopping!

Greg Mankiw's Blog: Redefining "grownup" and "hack"

Greg Mankiw's Blog: Redefining "grownup" and "hack"

O great start fighting, always great to see something roaring boggling heating a huge pot fighting each other, like my old village young mistress and old hag wife fighting over their prick scumbag. He is mine you little gold digger whore only good at open your thighs over day and night! Well you! old useless hag if he is your keep him between your thighs day and night then he won’t coming over me! keep him if you can! Otherwise I take him over he is mine bluh bula….. blood shot eyeballs bubbles their mouths, scratches each other faces pulling haired each other heavy weight championship for the golden title, the winner is ……….??????????????????????????????????

Greg Mankiw's Blog: Happy Thanksgiving!

Greg Mankiw's Blog: Happy Thanksgiving!



Happy hoppy thanksgiving what a giving thought of thoughtful thanksgiving what a nice warm cozy feathery blanketing thanksgiving!

Scary update: Your neck you will be chopped and defrocked and eaten by a Thanksgiving monster! It is perfect time for these usless ineffective management extremely greedy nasty lairs put their necks on a chopping board and chopping!

Greg Mankiw's Blog: Cooley on Human Capital

Greg Mankiw's Blog: Cooley on Human Capital

He is a great salesman, he never missed the opportunities how to sell his or any other text books. Been thinking actually he is brainwasher for millions. You can imagine millions of people study in his text book around world and wake up one morning people calling him “ God Greg Mankiw” and his text book is a kind of bible. Every where his framed picture hanged a wall, people bow his picture like the North Korean do their dead dear old leader. Gosh then he might ditch his dear blog for a real congregate!

Greg Mankiw's Blog: An Open Letter to the New President

Greg Mankiw's Blog: An Open Letter to the New President


Can you believe this guy was alive and still is being alive and will be alive! He was is will be a splendor rare specie! I was deeply impressed by his description of attribution of a good economist must possess the follow:
...He must study the present in light of the past for proposes of the future, No part of man’s nature or his institutions must lie entirely outside his regard. He must be purposeful and disinterest in a simultaneous mood; as aloof and incorruptible as an artist, sometimes as near the earth as a politician...

Actually I was bit of soppy and touched by his wordings, thinking that economic is romantic. You know I have this thing about romance! According this commandment, I am too volatile bad tempered, dark and moody melancholia to be fit into this credential of a good economist but I know that it can be exciting subject to study, must be something in there for sure so I decide to dig. O man then this current event complete taken over! You can imagine if you don't know what is all about you are dead as fish out of water or ask Korean stop eating the stinking Kimchi (except me).

Greg Mankiw's Blog: NPR reads this blog

Greg Mankiw's Blog: NPR reads this blog

The warranties, the sky, the whinny of a runny, listening from the wireless!

Wednesday, November 26, 2008

Greg Mankiw's Blog: What's wrong with the efficient scale?

Greg Mankiw's Blog: What's wrong with the efficient scale?

As all ec 10 students know, competitive markets push firms toward the efficient scale, defined as the level of production that minimizes average total cost. The low costs are in turn passed on to consumers in the form of low prices. These conclusions no longer hold true, however, if government policy tilts the playing field by rewarding small scale.

Marginal- average rule: When marginal is below average cost, average cost falls, When marginal cost is above average cost, average cost rises. When marginal cost equals averages cost, average cost is at its minimum point.

For an Example:

Cane Harvesting Costs ( Herbert River Express, 3 October 2000)

…John Powell… explained to…to banks…lent to sugar cane harvesting industry that the industry was experiencing crisis of profitability. … brought about by lither crops, higher fuel prices and increase capital requirements, Here is some of what he had to say when addressing the issues:

In terms fuel, the average operator uses roughly 1000 litters a day, and more than $400 a day over the past year.

With light crops, harvesters are scratching to average 30 tones cut per hour but they are using the same amount of fuel as the would if they were cutting 60 tones. Effectively the cost of harvesting a tones of cane has doubled.

Capital repayment are being spread over half the tones, which effectively doubles capital costs.

The low product also impacts on labor costs and the costs of maintaining the machinery doesn’t change either.

And His Update:
The Food Security Act of 1985 significantly restricted the payments to large farmers. As a result, the farmers broke up their holdings by leasing the land to local investors. The investors would acquire parcels large enough to take advantage of the subsidies, but too small to run into the restrictions aimed at large farmers. Once the land was acquired the investor would register it with a government program that would pay the investor not to plant the land. This practice became known as "farming the government.''...

Note that the ostensible goal of the program---restricting the amount of government subsidies paid to large farmers---has not been achieved.When the large farmers rent their land to small farmers, the market price of the rents depends on the generosity of the Federal subsidies.The higher the subsidies, the higher the equilibrium rent the large farmers receive. The benefits from the subsidy program still falls on those who initially own the land, since it is ultimately the value of what the land can earn---either from growing crops or farming the government---that determines its market value.
Surprise but not so surprise update: This amazing but non-amazing thing! So the taxpayer money gone into fat doge big cooperation smart ass practice instead true frames subsides! If you know the rule you can manipulate whatever you like but that is very short-term stuff! But then this happening all the time

Greg Mankiw's Blog: The Return of Larry

Greg Mankiw's Blog: The Return of Larry

YEARH, here comes Larry in his hot seat with true teller hat; he will ask in his mirror every morning: mirror mirror on the wall who is the nastiest craziest hot shot in the world? Me Larry Larry of course! Do you have any flews? Ask himself again. Nob, nothing I am aware of it! I am flawless! I am sinless! Let’s go a road of unknown! He answered with smugness! Beginning of Larry’s true story.

Guessing update: I can guess who is the “well known” economist Leonhardt referring!

Greg Mankiw's Blog: Income Elasticity of Mistress Demand

Greg Mankiw's Blog: Income Elasticity of Mistress Demand

Instead of expensive mistresses- the name of gold-diggers, whores, husband stealers - to inexpensive old nagging hags familiar face of old seasons never retirees of limeade wifely imbecile nominal power of sharing marble tombstone. Well what is wrong about gigolos mistresses, it is part of life, that is why this life is so exiting! Like luxury good you can possess when you can afford and disposal when you can not afford them simple! You can imagine you eat peanut butter jam sandwich every single day you would be tired of them so some time you have to cook ( even if burn most times) eat with bitter test of scum! Gosh how wonderful if tablet that fix your hunger for all day so that you not have to eat or spend time for cooking!

Tuesday, November 25, 2008

Greg Mankiw's Blog: Competing Alliteration

Greg Mankiw's Blog: Competing Alliteration

A blind runner up, a deaf songs contest, a dumb’s operatic! People are live in a banana state of mulling, become a dummies , role model of nagger, evils and cheaters; fleas of rebellion and madness, quite impossible to see to hear to speak… don’t worry be happy…

Greg Mankiw's Blog: Ben and the Crisis

Greg Mankiw's Blog: Ben and the Crisis

Ben and the Ghost Song Sheet
“If I were to try to read, much less answer, all the attacks made on me, this shop might as well be closed for any other business. I do the very best I know how—the very best I can; and I mean to keep doing so until the end. If the end brings me out all right, what is said against me won’t amount to anything. If the end brings me out wrong, ten angels swearing I was right will make no difference.”
Gee what a face, just come from an achieve to a marble stone! A ghost

Greg Mankiw's Blog: The Financial Crisis

Greg Mankiw's Blog: The Financial Crisis

Financial crisis people crisis, they are living manic depressive mood, need a dramatic adjustment before getting into black vile need high dose lithium to kick up for prevention of desperate state, may be kill themselves

Monday, November 24, 2008

Greg Mankiw's Blog: Christy Romer to the CEA

Greg Mankiw's Blog: Christy Romer to the CEA



Watch me watch my back! See what I have got! You haven’t get it what I have! Look my back! You better watch my back, brains are in my back, eyes too, you better watch your back too! I have a muscled back, bullet proof in my back; I take no fools in my back, full of nobs and snobs! Unity of no silence partners, bliss no one, pre-awareness an everywhere, none-differentiation, no-nonsense, full of thoroughbreds ready to gallop jump show tells a spectacle!

Nice to have picnic everyday! I like peanut butter jam sandwich at a rose garden, I bet it has rose at the White House, allocation lands: Ok you weathervane the north, yours honeymooner south, you the big mouth west and you kowtow east. All of you jump, in here tell them shut up and you tell this guys in here tightening up their belt, heads up ass down working 24 hours, you tell this jerks behavior themselves and you bulldogger them, tell them if not careful buried them alive… bluh bluh…. Thank thank you very much

Greg Mankiw's Blog: $280,000 per job

Greg Mankiw's Blog: $280,000 per job

This is from Washington Post
$700 billion over the next two years....Obama has set a goal of creating or preserving 2.5 million jobs by 2011.
And his brain walking as

Dividing one number by the other, that works out to $280,000 per job.

What is going on here? Logically, it must be one of three possibilities:

1. The fiscal stimulus is going to be much smaller than is being reported.
2. The new administration is setting a low bar for itself when it comes to job creation.
3. The Obama team believes in very small fiscal policy multipliers.

Let me amplify the last point with a rough back-of-the-envelope calculation. The average weekly earnings of production and nonsupervisory workers is about $600, or about $60,000 over a two-year period. Granted, labor income is only about two-thirds of national income, and we have to add a few supervisors into the mix. So let's say each job created means $100,000 of extra national income. If we are generating $100,000 of income with $280,000 of government spending, the multiplier is only 100/280, or 0.36. By contrast, traditional Keynesian models suggest a multiplier closer to 2.0.
And I burp quick: All three of them. Or it can be mix of jobs, not only production lines but lab workers, teachers, computer programmer, managerial jobs etc.. but then it has been always has been a kind of “figure” of promising jobs creation is a straight line of increase numbers rather then quality of jobs

Greg Mankiw's Blog: The Outlook

Greg Mankiw's Blog: The Outlook



This figure, from Menzie Chinn, shows log real GDP, from 26 Sep 08 final release (red), from 30 Oct 08 advance release (blue), potential GDP (black), the mean forecast from the Wall Street Journal's October survey of forecasters (pink circle), and from the November survey of forecasters (teal triangle).

Real GDP a year from now is forecast to be about 5 percent below potential.


Because 5% down mean can of worms in the baskets!

Sunday, November 23, 2008

Greg Mankiw's Blog: Summers to the NEC

Greg Mankiw's Blog: Summers to the NEC

I wonder: What role will the Council of Economic Advisers have in the new Obama administration? And how will the CEA and NEC get along?


When I worked for President Bush as CEA chair, the NEC and CEA had distinct and complementary roles. The CEA was staffed by professional economists, many from academia, whose expertise was economic analysis. By contrast, the NEC was staffed by those with experience on Wall Street and Capitol Hill. The NEC's main role was to coordinate the policy process, to act as an honest broker, to make sure that all points of view were heard, and to facilitate discussion among the relevant departments so all felt they had a fair shot to make their case. Steve Friedman, formerly of Goldman Sachs, ran with NEC with impressive intelligence, humility, and diplomacy.
WOW conjuration congregations Larry Larry Summer on a hot seat, if I were him I buy 70 pair socks all black and so never mixed colors so never wrong so he can take his feet at work so no one looking at his feet but only his brain and mouth, wonder how much candy he will make, he might have a remote control for the universal map, buzzzzzzzzzzzz buzzzzzzzz, wouldn’t be nice to have a control tower with a nice buzz remote control.

Greg Mankiw's Blog: News Flash

Greg Mankiw's Blog: News Flash

Go to chapter 11 or not let the goddess of Faith makes her divan decision in due to course. Well common, if they are asking tax payer help they have to tighten up their belt, especially management, flying their private jets for begging is a ghost’s midnight medical workshop at its graveyard.

Greg Mankiw's Blog: Treasuries as Negative Beta Assets?

Greg Mankiw's Blog: Treasuries as Negative Beta Assets?


The basic idea is that, in the present environment, nominal Treasuries have a negative beta. If we go into Depression, the expectation is that this will be accompanied by substantial deflation, so that Treasuries will do well in real terms. In contrast, the typical pattern is different--perhaps bad times are usually accompanied by high inflation or at least average inflation. Therefore, especially at the shorter end, the relation between indexed and conventional Treasuries has shifted--the real rate on indexed bonds now has to be well above the expected real rate on nominal bonds. This observation also means, particularly at the shorter end, that the spread provides little information about expected inflation.

Barro's brain storming regarding correspondence of Treasury and TIPS and he is says don’t worry be happy market has been always thinner healthier

Saturday, November 22, 2008

Greg Mankiw's Blog: Lessons from the New Deal

Greg Mankiw's Blog: Lessons from the New Deal

A union in work place tale, after length of bargaining, it is a kind of process, ups and downs; two women union members( one is a resident union leader) walked into manager’s office first in the morning. They positioned one(the leader) was behind manager and another one stood front of manager and they locked the door and start to verbal attack;

Union: what a fucking nasty bitch you are, aren’t you? you try to drive us out from here! You can not get what you want, we don’t do this and that blah blah…. Her sharply nailed second finger pointed at the manager.

So

Mananger: Well Ma,am if you don’t want to do your work that is fine, but stop fucking abusing me, and call me a “bitch” that is really bitch’s talk ma,am, am doing with my work what is law says alight!

Union: looking at her leader behind manager standing with a raged red face, did you hear what this bitch just is saying to me “fucking” she twisted around words, swears at me, she is attacking me verbally, abused me verbally!

Manager: Ma,am, you are abusing me, you used “fucking” first ma,am! You fingered at me and told me “ you are fucking bitch!” ma,am! with smile.

Union: No, you are lying now, I never used “fucking” never called you “fucking bitch” you used it not me, you are lying now, we are going to something about this verbal abuse….. you abused me verbally….

Greg Mankiw's Blog: A Macroeconomic Puzzle

Greg Mankiw's Blog: A Macroeconomic Puzzle


Prof Mankiw's Question:

You observe an economy sinking in recession. As this occurs, real interest rates are rising, and the currency is strengthening. What shock, or set of shocks, could have caused these events?

The money market is same as any another market demand and supply. - Excess money supply people buy bond as result bond price rises and the interest rate falls. Excess money demand people sell bonds so bond price fall and the interest rate rises.

Expansionary monetary policy: Increase money supply – surplus and people buy bond so decrease interest rate. Contradictory monetary policy - decrease money supply, shortage of money and increase interest rate.

For example: the below is Australia Monterey policy adjustments interested rates(cash rates)in 1999.

Data: Reserve Bank Australia(RAB)
Q1) 5% to 6.25% , same time monetary bases from $29.7 billion to 28.2 billion year 2000.
Q2) 6.25% down to 4.25% same period base expansion was from $29.2 billion to $37.0 billion January 2001 to December 2001
Q3) 4.25% to 5.25 % same period base expansion was $35.0 billon to $ 38.8 billon year 2002 to 2003.

Interpreting the date Monterey policy adjustment point of view and the impact of the responds of the demand and supply for money on interest rates.

Answer:
A1) RBA reduced the monetary base, with demand for money either increasing over the period or remaining unchanged - contradictory monetary policy push interest upward.
A2) During this period RBA, increased the monetary based with demand money, this expansion in supply put downward pressured on interest rates- Expansionary monetary policy.
A 3) The demand money increased more rapidly then supply during this period, the result was in general Australian financial market liquidity was tighten sufficiently by the RBA to result of desired increased in the cash rate.

Greg Mankiw's Blog: Glaeser on the Auto Industry

Greg Mankiw's Blog: Glaeser on the Auto Industry

Well let them go thought walk with chapter 11 step by step then they might learn lesson. Problems is that when hired managers runs a company they don’t know how to survival from hands and mouth. Hired managers were mostly their career began with manager finished with managers. Time fillers and paid monthly check, nothing to do their performance, all their professional life they sculpturing their skill how to lick “current hotshot” ass in their little enclave and learn how to spend money to consultants to do jobs. When they turn, they don’t know much of know-how from their factor floor so they don’t how to engage the floor people, probably they don’t go to the floor often enough, wrong information from another arsoholes who happen to another ass lickers, chain reaction, therefore all floor people turn into union. Anyway union is big business, very profitable from their membership fee. If I were American why should I buy a from the big three, instead from Honda, knowing that a car from big three is quality probably not as good as Honda but price is same because union wage loading. Should be lean and hungry- is much healthier.

Thursday, November 20, 2008

Greg Mankiw's Blog: What is the Fed to do?

Greg Mankiw's Blog: What is the Fed to do?


Here is one idea. Suppose the Fed cuts the federal funds rate once again to, say, 25 basis points. More important, at the same time, the Fed announces a target path for the price level as measured by the core CPI. The price path might be, say, an increase of 2 or 3 percent per year. The Fed promises not to raise the fed funds rate over the next 12 months and, after that, will keep the funds rate at that low level as long as the price level is significantly below its target path.

The credibility of the promise is paramount. To get long-term real interest rates down, the Fed needs to convince markets that it will vigorously combat deflation, and that if deflation happens in the short run, the Fed will reverse it by subsequently producing extra inflation. A credible promise of subsequent price reversal after any deflation ensures that long-term expected inflation stays close to the inflation rate implied by the Fed's target price path. Monetary economists will recognize that this policy is price-level targeting rather than inflation targeting.
O man now here brains are saying they don’t know a monetary policy going to slap the economic bitch face hard enough lose her all senses with purple blue yellow eyes to make stop go down the hill. They are calling witchdoctor for help for praying for faith of her future. Whether go down or go up. her life muddled with services of mankind, so she must fit for her grand final, robust encountering heaven, so she begotten fertile tomorrow, that gives her motivation make her standing up her wobbling knee from her down spiral. Now look at Krugman - the Nobel gold medalist preoccupied with his paranoia his down spiral Pandora box. Slaughter if necessary sterilized if necessary chopped neck off if necessary, he says

Greg Mankiw's Blog: An Underserved Market

Greg Mankiw's Blog: An Underserved Market



O, what a purgatory soul is, let him placing himself a dungeon market for a conceivable deserver, serve for woozy good value of chivalrous sod of junk stock. Who is this cuckoo anyway?

Update: Sincere sympathy is clear as bluest sky with tearless heartfelt pain shooting empathy. He is tightening his unwoundful evil virtue of accountancy and his codeless voice is playing a torn string of loss grief half backed can of bean

Greg Mankiw's Blog: A Sustainable Auto Industry

Greg Mankiw's Blog: A Sustainable Auto Industry

Well, it looks a lot like the automotive industry run by "foreign" car companies that insource jobs into the U.S. In 2006 these foreign auto makers (multinational auto or auto-parts companies that are headquartered outside of the U.S.) employed 402,800 Americans. The average annual compensation for these employees was $63,538.

At the head of the line of sustainable auto companies stands Toyota. In its 2008 fiscal year, it earned a remarkable $17.1 billion world-wide and assembled 1.66 million motor vehicles in North America. Toyota has production facilities in seven states and R&D facilities in three others. Honda, another sustainable auto company, operates in five states and earned $6 billion in net income in 2008. In contrast, General Motors lost $38.7 billion last year....


How to muddle through international competition for Honda and Toyota:

Get ahead of market by doing less cost high quality substitutes products able to shark off newcomers’ challenge of innovation.

Sensitive the market so widening of the competitive cycle.

Through R& D, understand that technology allows cross-category competition.

Access a low-cost market information, outsourcing, reducing manufacturing intensity and avoid barrier to market entry.

Through customer services to reduce customer switching cost

In other word, among other braining, continues product innovation n development, excellent customer services thought closely guarded channels of distribution.

Wednesday, November 19, 2008

Greg Mankiw's Blog: Deflation Worries

Greg Mankiw's Blog: Deflation Joy



He is kind of an evil, pointing or updating all sort of evil things as if that are his mission. Well good thing about “deflation” price is getting cheaper, thinking that way, it is much better that way rather then toward something that is evil, cool. I don't understand what is this mean, he might have a day dreaming? Presumably, this is not because motorists are suddenly concerned about their tires running out of air.Alight I figured out, a bitch nails, screeched an arsohsole's inundauntly robust virtues in 2008

Greg Mankiw's Blog: This is your brain blogging

Greg Mankiw's Blog: This is your brain blogging

Here is what it says about this blog

INTP - The Thinkers : The logical and analytical type. They are especialy attuned to difficult creative and intellectual challenges and always look for something more complex to dig into. They are great at finding subtle connections between things and imagine far-reaching implications.

They enjoy working with complex things using a lot of concepts and imaginative models of reality. Since they are not very good at seeing and understanding the needs of other people, they might come across as arrogant, impatient and insensitive to people that need some time to understand what they are talking about.

Greg Mankiw's Blog: How is the middle class doing?

Greg Mankiw's Blog: How is the middle class doing?

Where has all the income gone?
  • The U.S. Census Bureau reports that median household income stagnated from 1976 to 2006, growing by only 18 percent. In contrast, data from the Bureau of Economic Analysis indicate that income per person was up 80 percent.


  • Three data issues adversely impact reported median household income gains: the choice of price index, a change in the mix of household types and the measure of income used.


  • After adjusting the Census data for these three issues, inflation-adjusted median household income for most household types is seen to have increased by 44 percent to 62 percent from 1976 to 2006.


  • This come from Marginal Revolution.

    Greg Mankiw's Blog: More Members

    Greg Mankiw's Blog: More Members
    Allan Sloan joins the Pigou Club:

    Having permanently high gas prices would let the market, rather than incomprehensible, loophole-ridden Corporate Average Fuel Economy regulations, make the decisions on what kind of vehicles Americans get to drive. As part of my plan, I'd scrap these CAFÉ standards, abandon the current attempts to force automakers to spend tens of billions of dollars to meet higher fuel-economy standards. Instead, the market, guided by a high gas tax, would rule.

    And so do many CEOs:

    Members of the Journal’s CEO Council tasked with discussing priorities for the U.S. economy and finance offered several fairly uncontroversial suggestions to the incoming administration: implement a fiscal stimulus plan without worsening the long-term deficit, appoint a panel to address financial regulation, create an economic vision.

    Tucked away in the proposal, in the category of long-term tax policy, was this political grenade: “consider raising taxes on gasoline.”

    Put high tax, like the “master pieces” painting, I bet most of people buys painting as investment or if museums pieces, all of them keep vault few meter deep down dungeon. Very few permanent display, they don’t have resources for taking out for rotation. How many ordinary people buy paintings? Cool then think about gasoline, make as rare creatures. So who knows gas station attendants become gigolo connoisseurs or real Arabic Sikhs are pumping his oil from golden harem-place gas-station. Then people really need up themselves to get some petrol. So ordinary people justified their pride of being no money for such expensive oil for greenies, so less hurt their pride. Probably Hefty taxing is way of much cheaper and faster then ask car industry “ innovation innovation” making fuel efficient cars, so car industry pours on money, you can not make innovation instant, also only making new car is not solving problems, innovation goes to deep system inside of a company. I have nothing to against union as I have lots experience working with unions but a company can not be competitive where union has strong bargain power for sure. Mean time government vigorously infrastructure of public transportation more readily to available, create jobs where people can work at home or walking distant so on…

    Greg Mankiw's Blog: Expected Return

    Greg Mankiw's Blog: Expected Return



    The bottom line: Right now, the expected inflation-adjusted return is about 6 percent.
    This ratio can be different from industry and industry, so if you want become a value investor like Buffet you have to looking into more then just ratio but go beyond and dissect whole thing; security analysis. Cheap mean is not all good one. When price is low, you wonder why and then looking into company performance, and its management or customers. Also bit of intuition playing role; feeling things, figuring out which is good or not. I think this come from experience also lots of economic stuff around traps, read lots of newspapers blogs picked everyone brains if you can, good thing about this information age, people wonderfully generously let their brain; saying please pick my brain for free! but there ain't no such thing as a free lunch!

    Tuesday, November 18, 2008

    Greg Mankiw's Blog: Defining Terms

    Greg Mankiw's Blog: Defining Terms

    What is recession?



    Left think right way right think left way. Everybody is saying everything is wrong, nothing made form goods, everything made from ugly. Everyone become tasteless so I can not taste my ice-cream is tasty, therefore everyone become helpless to change their imagination all become hallucinated paranoia and lived in their preferable little cozy fearful schizophrenic triple con ice-cream.

    Greg Mankiw's Blog: P(Depression) = 0.15

    Greg Mankiw's Blog: P(Depression) = 0.15

    Here, according to betting at Intrade, is the probability of a depression in 2009, defined as a cumulative decline in GDP of more than 10.0% over four consecutive quarters.




    I am betting for “definition” my bet is “depression 2009” is 0.00%. I can bet whatever I want so there! I think his life is betting place betting everything, life is a game, life is betting, 50/50 chance you have. Least I think that my chance is 50% not bad at all. Think about it 50 is a huge number, don’t think about another 50% forgone but you will have 50 chance. That is how gamblers think. Recession? yes. so I am not betting “ recession” not so good betting

    Monday, November 17, 2008

    Greg Mankiw's Blog: Larry Summers as Treasury Secretary?

    Greg Mankiw's Blog: Larry Summers as Treasury Secretary?

    The questions comments that are offensive to others but not me, the things is I am not really thinking about what I am saying, just what I see my two eye balls my tongue is start rolling(this is between you and I Ok); “why some of these women sterilized by themselves so that they can not get pregnant, what is the point having babies they can not feed them! Any way this world over populated so few million deaths by disease or war that would be better off in mankind. (A woman decides keep her disable child instead of an abortion. )Well I think she is a dumb, she didn’t think about the cost and quality of the child life! Alan cross my comments. I am not sure whether I am aright or wrong that is my thinking and what I am saying, I have not thought about it seriously what I am saying may be lots of other people out there same thinking. Virtue? Well hell get fucked!

    Angry update: How to justified virtue anyway, stave dead child bodies on the road like piece of rubbish, rotten away, or human being lives only breathing but rest of dead what is different dead and live then. need a war time to time sake of war. What a nice talking about softy cozy virtue in koo koo land

    Greg Mankiw's Blog: Auto Industry Bailout?

    Greg Mankiw's Blog: Auto Industry Bailout?

    Jeffrey D. Sachs- Pro

    And a transformation of the type that's required for long-term sustainability of the automakers will require both the market and government. Public policies and funding are needed to support the research and development of high-performance batteries and fuel cells and, especially, to modernize the national power grid and other infrastructure. These are steps that individual auto companies (and even the industry as a whole) could not accomplish on their own.
    Becker-Posner- Con
    Nevertheless, I believe bankruptcy is better than a bailout for American consumers and taxpayers. The main problem with American auto companies is that during the good times of the 1970s, 1980s and 1990s, they made overly generous settlements with the United Auto workers (UAW) on wages, pensions, and health benefits. Only a couple of years ago, GM was paying $5 billion per year in health benefits to retirees and current employees because their plans had wide health coverage with minimal co-payments and deductibility on health claims by present and retired employees. In those days, the UAW was one of the most powerful unions in the US, and it bargained aggressively with the auto manufacturers, carrying out strikes when its demands were not met. When the American auto industry began to face tough competition from Japanese and German carmakers, they were saddled with excessive pay to their workers, and vastly excessive pensions and health benefits to their current and retired workers.

    It is not that cars cannot be produced profitably with American workers: the American plants of Toyota and other Japanese companies, and of German auto manufacturers, have been profitable for many years. The foreign companies have achieved this mainly by setting up their factories in Southern and border states where they could avoid the UAW, and thereby introduce efficient methods of production. Their workers have been paid well but not excessively, and these companies have kept their pension and health obligations under control while still maintaining good morale among their employees. In recent years GM and the other American manufacturers have chipped away at their generous fringe benefits, but their health and retirement benefits still considerably exceed those received by American auto workers employed by foreign companies. As a result of lower costs, better management, and less hindrance from work rules imposed by the UAW, about 1/3 of all cars produced in the US now come from foreign owned plants.
    YS K-W Middle
    I am sitting middle, yes why can’t they run like Japanese’s’ and of German’s. Lots of things to do UAW, the companies and the union sitting together, open can of worm up and put them on the table, saying to the union; here is deal we have this either let it gone to drain or bit of give and take so that we all can have some instead nothing. Without fixing the union, it would be pour water into bottomless pit. And the company gets union’s “reasonable bargain” go for the Uncle Sam and knelt down humble begging.

    Greg Mankiw's Blog: Another Member

    Greg Mankiw's Blog: Another Member

    Why can’t we make this world as a perfect! It could if people want to that way. state of your mind, as this world never be perfect, least we could try. Every situation you can make it perfect if you want. Actually been thinking how about brain washing and vigorous manipulation of people, then people happy even if they live in a big sag illusion. For example some trash paintings put hefty price tag on, put on an auction, some of people vaingloriously faithfully dissect them as if beauty is their life goal or buy them for investment, and tell the public “master piece” because the price. Well what a shit thing to say. yes their brains are shits so they only think money disposal unit, because they are afraid of saying that these painting are “rubbish” but because of the price and a guy who painted the shit accidently “famous” and dead now so regardless how trashes they might be, worthy of commend beauty because of price. So some crazy guy come out saying “hey all of you, this is rubbish!” He is dead a maggot, no one want him around. He broke the rule of market, dumb back scratch each other. I used to share a studio few painters. Used to joke about how rubbish some of the paintings are, especially abstracts are real trashes, some of these so called art critics even worst. They write about lots of wretchedly garbage articles, called themselves connoisseurs. People follow like flea. Well every body has right to do whatever they called themselves as make their world perfect. Put hefty tax on gasoline let the people make decision whether worthy to buy dirty air or justified themselves the price.

    Sunday, November 16, 2008

    Greg Mankiw's Blog: Cost Differences

    Greg Mankiw's Blog: Cost Differences



    I must say I am good at costing and pricing in my area, it is one of my strong point I must say. When I am a project, see feel the picture, and the result what I after, then from there I just know what to do to get the best competitive advantage; all but factor costing, you have to know all factors intuitively, sometimes facts alone in your plate doesn’t provide you much, as you have to know the industry inside out and sensitive about environment where you are in, this economy learning is great to provide me all sort of thing which I didn’t think about them before. the company competitive advantage is, industry in general: a company ability to reduce cost and ability differentiate services/goods are in important to the customers I think.

    Greg Mankiw's Blog: Death and Taxes

    Greg Mankiw's Blog: Death and Taxes

    I love wine, for me wine is kind of music, I study wine bit, some collection too, someday I will collect them extensively, or thinking of winery too, Yarra Valley is nice place to be but I love sea, grapes are not so good near sea, everyone collect wine these days, with a good companion with a good conversation all together nicely, O yes sunset that would be splendors combination of sharing. It is part of our family business too- brewery, yes problems if you abuse, that would be problem, everything same

    Greg Mankiw's Blog: The New Edition and the 2008 Downturn

    Greg Mankiw's Blog: The New Edition and the 2008 Downturn

    The below are recent add items, Prof Mankiw’s beloved 5th ed, Principles Economic, out-of-date even before walking from a printer.( Sorry I put this wrong place. Probably I was half sleep heehh anyone see this before me? well than be reasonable ok)

  • The chapter on The Monetary System includes a new feature on The Financial Crisis of 2008 that discusses the Fed's role as lender of last resort in the wake of the nationwide fall in house prices and rise in mortgage defaults.




  • The chapter on Aggregate Demand and Aggregate Supply has a new discussion of The 2008 Fiscal Stimulus that aimed to give a boost to consumer spending.


  • The chapter on The Influence of Monetary and Fiscal Policy on Aggregate Demand has a new feature called The FOMC Explains Itself which includes the Fed's explanation for its recent, substantial cuts in interest rates.


  • The chapter on The Short-run Tradeoff Between Inflation and Unemployment includes a new section called Bernanke's Challenges which discusses the macroeconomic shocks the Fed has recently been dealing with.

  • At current, economic is priestly pediment brat at moonless night, deeply resent anything that firmly nails her down. Grand final of jittery entrance heavenly gateway, young and better tomorrow, one’s sensual body one’s exotic game she is called economics, basically she is a faithless whore, gloom today bright tomorrow, whoever better offer she sell her soul, that is why out-of-date inside tantric freaks printing marching.

    Saturday, November 15, 2008

    Greg Mankiw's Blog: Inferior Goods

    Greg Mankiw's Blog: Inferior Goods

    Winners and losers, what a wonderful news, somewhere some people get benefit from the rubbles. I must say I might stop reading economic for while. It is so depressing. Reading day after day. Economists are in general heartless fleas they deal with numbers symbols, don’t connect feeling at all. All live in their head, brains are their houses where they sleep eat making love buying things doing their holiday all in their brains.

    Greg Mankiw's Blog: Stock Market Valuation

    Greg Mankiw's Blog: Stock Market Valuation

    Be fearful when others are greedy, and be greedy when others are fearful.

    Great idea, people said tht I am good at doing things opposite of others, it is fun time!! I will do what Buffett has been doing, where am I heading to? He he lots of candies in my pocket.

    Greg Mankiw's Blog: P(Larry Summers at Treasury)

    Greg Mankiw's Blog: P(Larry Summers at Treasury)



    Larry Larry is sizzling on the summer heat on a betting table, how much his worth, what happen if he forget take his feet at the work and only he takes his brain. Or he wears a sock forget a no-sock. Mind you, beware if he gets The Treasury he will have $trillions on his belted money bag for his pocket money, Gee he will be a buck buster! gosh wouldn’t be nice bit share with everyone his candies? Everyone knows he has a huge mouth with huge missiles tongue: he might telling people “hey you, all of old flock, time to go to the oven (or under few meters of concrete!) become graced porcelain souls, your glazing cracks are for your children and their children zenith, plea please” Or “ heated bitches are nailing their man in their back as a seal of acme.” Or “ what a bunch of patty resort rest of you, see what happen economy, economy is the master pieces rascals scumbag of mankind’ creation, therefore we economists are bunch of irascible scooter mouthed blundering gigolos mujahedeen proof nothing revenged nothing located nothing performance nothing obloquy nothing, but rest of you are so dumb-bags you never know what our follies are, we are cyclonal monsoon, so you can't do anything about our paranoid broccoli travestied wiggles

    Friday, November 14, 2008

    Greg Mankiw's Blog: A $600 Billion Fiscal Stimulus?

    Greg Mankiw's Blog: A $600 Billion Fiscal Stimulus?
    Paul Krugman's $600 Billion Candy
    …..When depression economics prevails, the usual rules of economic policy no longer apply: virtue becomes vice, caution is risky and prudence is folly.

    ---
    To pull us out of this downward spiral, the federal government will have to provide economic stimulus in the form of higher spending and greater aid to those in distress — and the stimulus plan won’t come soon enough or be strong enough unless politicians and economic officials are able to transcend several conventional prejudices.
    ---
    All indications are that the new administration will offer a major stimulus package. My own back-of-the-envelope calculations say that the package should be huge, on the order of $600 billion.

    What Paul Krugman is saying in his wonkish two eye balling way” think your brain out from your little marble box” the transformative word into magic. Huge size, he says make us thinking how much is $15 trillion, how many candy you can buy? Then stimulus your brain as well as your all senses, multiplier all your senses out what is going on. Located your tarantula brain to toes, remember bigger stimulus can get out form this impotent mania depressive arsohole reached his brain busting ejaculation. This is my interpretation, if I am wrong you tell me OK! cool Wonder he might train a witchcraft. I have been reading Easter Island Rongorongo(see below) Sorry bit of out of context $600 billion candy box, but looking at this incredible enchanting symbols, wonder why Ester Islanders all gone with wind? Any civilizations has this kind of splendorous words, the mind of man who created this life of heartfelt feeling, why no longer in this world? That is question I am asking this morning. Why I am linking two these?

    Greg Mankiw's Blog: President Bush on the Economy

    Greg Mankiw's Blog: President Bush on the Economy

    Free market capitalism is far more than economic theory. It is the engine of social mobility -- the highway to the American Dream. It's what makes it possible for a husband and wife to start their own business, or a new immigrant to open a restaurant, or a single mom to go back to college and to build a better career. It is what allowed entrepreneurs in Silicon Valley to change the way the world sells products and searches for information. It's what transformed America from a rugged frontier to the greatest economic power in history -- a nation that gave the world the steamboat and the airplane, the computer and the CAT scan, the Internet and the iPod.

    Ultimately, the best evidence for free market capitalism is its performance compared to other economic systems. Free markets allowed Japan, an island with few natural resources, to recover from war and grow into the world's second-largest economy. Free markets allowed South Korea to make itself into one of the most technologically advanced societies in the world. Free markets turned small areas like Singapore and Hong Kong and Taiwan into global economic players. Today, the success of the world's largest economies comes from their embrace of free markets.


    Meanwhile, nations that have pursued other models have experienced devastating results. Soviet communism starved millions, bankrupted an empire, and collapsed as decisively as the Berlin Wall. Cuba, once known for its vast fields of cane, is now forced to ration sugar. And while Iran sits atop giant oil reserves, its people cannot put enough gasoline in its -- in their cars.

    The record is unmistakable: If you seek economic growth, if you seek opportunity, if you seek social justice and human dignity, the free market system is the way to go. (Applause.) And it would be a terrible mistake to allow a few months of crisis to undermine 60 years of success.

    Just as important as maintaining free markets within countries is maintaining the free movement of goods and services between countries. When nations open their markets to trade and investment, their businesses and farmers and workers find new buyers for their products. Consumers benefit from more choices and better prices. Entrepreneurs can get their ideas off the ground with funding from anywhere in the world. Thanks in large part to open markets, the volume of global trade today is nearly 30 times greater than it was six decades ago -- and some of the most dramatic gains have come in the developing world.

    As President, I have seen the transformative power of trade up close. I've been to a Caterpillar factory in East Peoria, Illinois, where thousands of good-paying American jobs are supported by exports. I've walked the grounds of a trade fair in Ghana, where I met women who support their families by exporting handmade dresses and jewelry. I've spoken with a farmer in Guatemala who decided to grow high-value crops he could sell overseas -- and helped create more than 1,000 jobs.

    Stories like these show why it is so important to keep markets open to trade and investment. This openness is especially urgent during times of economic strain. Shortly after the stock market crash in 1929, Congress passed the Smoot-Hawley tariff -- a protectionist measure designed to wall off America's economy from global competition. The result was not economic security. It was economic ruin. And leaders around the world must keep this example in mind, and reject the temptation of protectionism. (Applause.)

    There are clear-cut ways for nations to demonstrate the commitment to open markets. The United States Congress has an immediate opportunity by approving free trade agreements with Colombia, Peru*, and South Korea. America and other wealthy nations must also ensure this crisis does not become an excuse to reverse our engagement with the developing world. And developing nations should continue policies that foster enterprise and investment. As well, all nations should pledge to conclude a framework this year that leads to a successful Doha agreement.



    The other day I had a great chance (accidently chance) a conversation with a person about president Bush, not really conversation rather I would say, had a chance bombardment of my question to him about people life, sunset and gone off the track economics, lead to President Bush. Woah what a wonderful chance was! I like ask questions. I read somewhere people should ask “good” question only but I don’t know what is good or bad, I just ask questions so sometimes people quite annoyed. But I have now Google, Wikipedia can ask any questions, but sometime you need human touch. Anyway he happily devoured my questions without much hassle rather I think he enjoyed as much I did our concernedness verbal slanging match. Among many he said that don’t believed what media says. They quite biased, you see he bluntly pointed out that I am quite “gullible” so try not to believe everything what I read. But I have been thinking if horrible sinister flea-feasted media try to seduced me into their spinster-vile nags and as result I made my “pure” fearsome judgmental error for certain things in life than who should I blame for my own foolishness: i.e. President Bush. Nice to know American way of thinking which I didn’t know much about it before. Here is President Bush’s nice speech; yes I think media should be fair. That is part of the spirit of democracy so that people able to judge a situation by themselves.

    Thursday, November 13, 2008

    Greg Mankiw's Blog: Kristof on Education

    Greg Mankiw's Blog: Kristof on Education
    The most effective anti-poverty program we could devise for the long run would have less to do with income redistribution than with ensuring that poor kids get a first-rate education, from preschool on. One recent study found that if American students did as well as those in several Asian countries in math and science, our economy would grow 20 percent faster.
    Even if manic depressive economic turn we should not mess around our education. It says. Economic is intoxicating, need a habitual shooting its vein for stopping its agitation but if root is rotten, the shooting is remain as a habitual shooting, problems won’t go away. All comes to economics, why economic is so important? Why economics is dominated our life in this way? Everything intermingled together... we have lots rain so good for us so good for the economy

    Greg Mankiw's Blog: Cues from History

    Greg Mankiw's Blog: Cues from History

    Learning form the History
    History teaches us that this backlash generates a populist push that can easily morph into economic policies that turn away from free trade, tax high-income earners, impede markets in the name of redistributing income, and pander to special-interest groups that cost a lot while carrying few benefits. The result can be large and long-lived effects that depress economic activity, sometimes for decades.
    How to nail this nasty temperamental bitch and relinquished her right to have any resurrection. Then probably there would be no economy cycle than he has to re-write his beloved text book again

    Wednesday, November 12, 2008

    Greg Mankiw's Blog: Financial Rescue Update

    Greg Mankiw's Blog: Financial Rescue Update


    Henry Paulson's New Phase recue plan
    the Treasury Department, signaling a new phase in its $700 billion financial-rescue plan, is considering requiring that firms seeking future government money raise private capital in order to qualify for public assistance, according to people familiar with the matter....

    "We are carefully evaluating programs which would further leverage the impact of a TARP investment by attracting private capital, potentially through matching investments," Treasury Secretary Henry Paulson said in a broad speech on the Troubled Asset Relief Program, known as TARP, the global credit crunch and the government's recent steps to address the financial meltdown.

    Here is Prof Mankiw's October 08, 2008, How to Recapitalize the Financial System:
    Here is an idea that might deal with these problems: The government can stand ready to be a silent partner to future Warren Buffetts.

    It could work as follows. Whenever any financial institution attracts new private capital in an arms-length transaction, it can access an equal amount of public capital. The taxpayer would get the same terms as the private investor. The only difference is that government’s shares would be nonvoting until the government sold the shares at a later date.

    This plan would solve the three problems. The private sector rather than the government would weed out the zombie firms. The private sector rather than the government would set the price. And the private sector rather than the government would exercise corporate control.

    Why would an undercapitalized financial firm take advantage of this offer? Because it would need to raise only half as much capital from private sources, that financing should be easier to come by. With Warren Buffetts in scarce supply, the government can in effect replicate them, by pigging backing on what they do.
    First come first serve like a soup kitchen. I am not really confident comments on this area but I think it is a sensible idea Mr. Paulson changed the recues plan more focuses on ordinary people and encourage private investment instead of zombie firms. Government hold your hands as silence partner for your investment it is not bad idea as environment like this.

    Greg Mankiw's Blog: Time to Buy Stocks?

    Greg Mankiw's Blog: Time to Buy Stocks?

    Mr Market is not random walking, wearing pretty red shoes

    Interesting, you see my system of o o o last few days, so I did it myself a deep cleansing. I went through myself. I met my “white wise man” some where inside Tao text, deep rush mountain lake mist, and surround by flowers smell of sweet nectarine, touched swelling sky there we were, anointed with fragrant, adorned with fruit, I was his maiden he was wearing long white rob, long white bears with white hair but his face with reddish. He told me in his clear blue sky with his bold cloud “ clear” and “two fold”. Cool stuff!
    Update: I suspect that my mind whatever reasons was alert and my body tired, so my body wanted to rest but my mind refused to listen.

    Greg Mankiw's Blog: The Meltzer Plan

    Greg Mankiw's Blog: The Meltzer Plan

    To address the housing problem, Congress and the administration should take actions that increase the current demand for housing. For a limited time, say up to the end of 2009, allow buyers to use the value of their down-payment (or some part of it) as a tax deduction. Or, reduce the tax rate for qualified buyers who purchase a house between now and January 2010. Or do both. Give the benefit to all home buyers, including those buying a second or third house.
    American dream – how to make people buy two or three houses all at once. It is an attractive idea, why not, it is a good investments.

    Tuesday, November 11, 2008

    Greg Mankiw's Blog: Split Opinion

    Greg Mankiw's Blog: Split Opinion

    He should make a diamond framed his “My Personal Work Incentives” strides bold steps, as an eternal tax guard ( three times it shows in his blog) wherever he goes, it will make him a great raconteur; his joy his troop his showroom, his two wheels, road into his portrait of marginal tax. A tax torch which purges everyone heads with irrecoverable quixotic apotheosis. - The American tax trilogy

    It is clear and two fold.

    Happy day!

    Greg Mankiw's Blog: Tax Policy during the Great Depression

    Greg Mankiw's Blog: Tax Policy during the Great Depression

    Understanding Fiscal Policy During the Great Depression.
    What Krugman seems to be saying is that the government didn't spend enough during the thirties...
    During the Great Depression federal expenditures increased tremendously but so did taxes. Thus, the reason spending was not stimulative was not that spending wasn't tried it's that taxes were also raised to prohibitive levels.
    Woah gosh 54% marginal tax rise during the Great Depression! This is cool Keynesian thing. He was a nice guy, one stage he was a gay too, what an interesting guy was, I have been thinking acutely I was attracted by one of his writing it was beautiful piece of writing, that was why I started thinking economic different way. But economists in general, do they have any soul? Seem to me that bit of cold heartless bunch of flea!

    Greg Mankiw's Blog: The Silver Lining

    Greg Mankiw's Blog: The Silver Lining

    I'll tell you the one really nice reason to be a value investor: When things like this happen, you cannot help but go nuts at the opportunity. What this looks like is the end of 1974, where good stocks are selling at three times sustainable earnings and stocks that normally wouldn't have sold at less than 20 times earnings are selling at 10 times earnings. These are exciting times. The short-term issue is that in the near term there will be a painful macroeconomic environment and we don't know how long it will last.

    Think like Buffett, become a Value investor and read D. Dodd and B. Graham’s Security Analysis. Wouldn’t be a nice Buffett set up a cool essential course somewhere deep mountain, recruited a few selective people for his disciples to train how to invest. But I think he wouldn’t be a good teacher. Why am I hyper alert? asking and listening myself, very unusual for me as I couldn’t’ relax. Normally control myself to turn on and off easily. Not my fiery temper through. Funny, didn’t even bother to have a meditation. Sometimes off the rail is ok too I think

    Saturday, November 8, 2008

    Greg Mankiw's Blog: Memo to the POTUS-elect

    Greg Mankiw's Blog: Memo to the POTUS-elect
    Congratulations, Senator Obama. You ran a good campaign, and you racked up an historic victory. As you get ready for your new responsibilities, let me suggest four ways for you to become a reliable steward of the economy:

    Listen to your economists. During the campaign you assembled an impressive team of economic advisers from the nation’s top universities, including Austan Goolsbee from University of Chicago and David Cutler and Jeff Liebman from Harvard. Your campaign’s director of economic policy, Jason Furman, is a smart, sensible, and well-trained policy economist. I know: He is a former student of mine.

    Pay close attention to what they have to say. They will often give you advice quite different from what you will hear from congressional leaders Nancy Pelosi and Harry Reid. To make sure you hear the views of your economists, put them in offices close to yours. Tell your chief of staff to invite them to all the relevant meetings.

    Embrace some Republican ideas. No party has a monopoly on truth. Be ready to take the best Republican policy proposals and make them your own, as Bill Clinton did with welfare reform in 1996.

    Health policy is a case in point. Over the past several months, you lambasted McCain’s proposal to reform the tax code to include a refundable health insurance tax credit. Did you know that long before McCain ever proposed this idea, it was advanced by Mr. Furman, your campaign’s policy director? He can explain to you why the Furman-McCain plan makes a lot of sense.

    Now you may decide that this plan does not go far enough. You may want a more generously funded social safety net to help the less fortunate get health care. Fair enough, but in pursuing that goal, you run into the next issue.

    Pay attention to the government’s budget constraint. The nation faces a long-term imbalance between government spending and tax revenue. The fundamental problem is that the federal government has promised the elderly more benefits than the tax system can support. This fiscal imbalance will become acute as more baby boomers retire and start collecting Social Security and Medicare.

    Yet during the campaign, you promised that you would cut taxes for 95 percent of Americans, that you would vastly expand health insurance coverage, and that you would never cut Social Security benefits or raise the retirement age. You will almost surely have to renege on some of these promises. As your economic team will often remind you, even if the laws of arithmetic are ignored during campaigns, they provide a real constraint when making actual policy.

    Recognize your past mistakes. As a new senator, you voted along predictable left-wing lines. As president, you will need a more eclectic, nuanced approach.

    Take trade policy, for example. In the senate, you voted against the Dominican Republic-Central American Free Trade Agreement. You opposed free trade agreements with Colombia and South Korea. You supported Senators Charles Schumer and Lindsey Graham in their quest to put tariffs on Chinese goods if China failed to revalue its exchange rate. You supported the Byrd Amendment, which encouraged domestic companies to file anti-dumping suits against foreign competitors. You supported subsidies for domestic producers of corn-based ethanol and tariffs on imports of more efficient sugar-based ethanol.

    Your economists can explain to you why these positions were wrong-headed. Economic isolationism is not in the national interest. A high point of the Clinton presidency was the enactment of the North American Free Trade Agreement, which passed both the House and Senate with a majority of Republicans and a minority of Democrats.

    This past Tuesday, many people voted for you hoping you would achieve the kind of economic success that Bill Clinton enjoyed in the 1990s. Your best chance of delivering what they want requires that you abandon some of your past positions and pursue a more moderate, bipartisan course.
    My extraordinary interpretation believe or not

    1)Economic is much smarten then any economist, after economic, second smartest is economists so economic issues should be patted by economists hands(correct one)
    2)The POTUS-elec says: It is my turn but you have some too because I am a nice guy, in your turn you do the same to me in next time OK?
    3) Watch bottom line, don’t blinded by my sunglasses eyes and hear, don’t deafened by my bejeweled ears
    4) Mistakes are not mistakes, it is a romantic fever when I doze off during my romantic agitation but we have to fair to current mess don’t understand madness Ok Cool here we go

    And see my cool picture, I have nice teeth just been dentist, which many birds are ga ga - you can kiss my lips if you want
    It’s a Time to Listen, and to Obey the Laws of Arithmetic

    Update:
    Just questioning for myself, do you think economic is smarter then economists? Any other profession such as merchants can solve this economic problems better then economists?

    Greg Mankiw's Blog: An Epistemological Digression

    Greg Mankiw's Blog: An Epistemological Digression

    Wow! Hoping his mind is not motor biking off hangs around cloudy all the time, and ask himself:
    Am I crazy?
    Or not crazy?
    Therefore I am half mad

    Friday, November 7, 2008

    Greg Mankiw's Blog: The New Draft

    Greg Mankiw's Blog: The New Draft
    This dug out from the president-elect Obama’s new change program:
    a plan to require 50 hours of community service in middle school and high school and 100 hours of community service in college every year.

    This dug out from the Galbraith and Friedman on the Draft - the President's Commission on an All-Volunteer Force in 1960s.
    In his testimony before the commission, Mr. Westmoreland said he did not want to command an army of mercenaries. Mr. Friedman interrupted, "General, would you rather command an army of slaves?" Mr. Westmoreland replied, "I don't like to hear our patriotic draftees referred to as slaves." Mr. Friedman then retorted, "I don't like to hear our patriotic volunteers referred to as mercenaries. If they are mercenaries, then I, sir, am a mercenary professor, and you, sir, are a mercenary general; we are served by mercenary physicians, we use a mercenary lawyer, and we get our meat from a mercenary butcher."
    In my view in practicality, in any job you need to time to settle on the job; screening new environments, what you have in your plate, it takes few weeks regardless whatever your qualification might be. Managing the system; every few weeks change over and retraining newbees’ costs more then the inputs. Also consideration goes to the 50 and 100 hours they can stay on their study more fruitful then the distraction. Korea we have nationals military services for male and have emergency reserve forces, but in Korean practically war at the moment. All Korean know that what they stand for.

    We all involved community serves one or another way. I saw many people; many women group, old folk homes, soup kitchens i.e. they are all give their time freely. No one ask them to do so but happily volunteered. Even if you don’t have time, you donate money your favorite charities. Few years back, according to the Age, if this all sums up, it would about equivalent of 39% of Australian GDP per annum.

    But regardless what we have to think the “real” the people’s liberty. It is the backbone of democracy.
    So I have to ask two questions myself:

    1) Are you happy to serve your 50 hours to women’s shelter if you can?
    Or
    2)You have a duty to give your 50 hours to a woman’s shelter.

    And this is an answer of my questions, he added this his blog while I am typing the above:
    The free man will ask neither what his country can do for him nor what he can do for his country. He will ask rather "What can I and my compatriots do through government" to help us discharge our individual responsibilities, to achieve our several goals and purposes, and above all, to protect our freedom? And he will accompany this question with another: How can we keep the government we create from becoming a Frankenstein that will destroy the very freedom we establish it to protect.
    So I think matter of questioning if I were an American!

    Greg Mankiw's Blog: Hire Better Teachers

    Greg Mankiw's Blog: Hire Better Teachers

    I don’t know much about this education business. So I can not comment how education system works. But education is business too so I agree, if you want to a good teacher for your kids you have to prepared to pay, the market price, market set the price, demand supply. Same as other professios. So that a good teacher can have six figures salary, an institution is called say” My University Ltd” then exactly same as other business enteritis. President, directors, mgrs i.e, if you have the magic potion allure number of students in your class and to contribute school profit then why not you should award handsomely.