Tuesday, December 30, 2008

Whore and Madonna

Humh interesting music, sex and cheesecake - Why music? an article from the Economist! Music???....! Whore and Madonna Or monk and underworld drug baron; all compact one. My taste of music is very harlotry; range from centuries old purest religious form, medieval classical to romantic and folks music around world. Many Korean like my generation I am a victim of excessive competition for achievement; learnt few instruments and sheltered or blockaded any ‘sinful vagary thing” pop songs, so I was missed out lots of my generation of pup culture. After some 12 or years of entrapment of white collared black uniform(you can not go out without uniform), romance with boys out of question and from to schools- lessons- home straight one straight line, nonstop-no-nonsense stray – you just didn’t know what was going on outside of the liner street!

I think music represents our very existence, everyone loves music one or another way. Our endless dark erotic longings, violent savage yet most delicate loving tenderness within us, channeling though the loftiest form of grace and happiness or sorrowful summit – we feel the incredible human blesses and province of human suffering same time. The frightful horror, transitory pain and despair, most compassionate wafted comfort blanket for us. Music sex and food inseparable mates; arouse us the desire to love and to be loved! I am not so sure what is it? Make us a such experience of loftiest power of the sprit – probably god than?

Update: Or maybe music can be like the Current economic crisis, Subprime mortgage crisis, Liquidity trap and here Krugman's Optimal fiscal policy in a liquidity trap!


Q: What happens chock full of nerdy wonks?
A: Utter Nutter Cutter Hoofer Packer Jekyll and Hyde ---

Where is my pair of rollerblades?

The Seeds of the Current Crisis

Seed of evil is a deedless henchman’s escheatment

Monday, December 29, 2008

Hot Summers Palace

Watch out everyone! We are not bullshit, our uniforms sleeveless shirts – ready for dirty work; we are going to squawky squeaky quaky clean – obsessively compulsively orderly! We all put our heads into initial and medium to heavy cycle wash and come out squeaky lemon scented kudos clean! We are going sitting hot house so you can see what we are knitting away from our granny bulletproof coffer! You can read our minds like plumes of your hands. Our brains have full of anti-nutty pie flavor cater for gourmands exclusive taste Sunday roasting, so anyone who has excessive taste for your granny cooking can suck our brains anytime any place! We all are penny pincher pitchers honkers never squandering any penny so trust us plea please --- Great! All American are can rest peacefully any places! Even in their granny flat with their pecan-pie! Branding Larry: Larry Walk Larry Sock Larry Remote-control Larry Sky Larry Squawky Chair, Larry Squeaky Clean, Larry Anti- corruption bin, Larry duster and dusty bin, Larry Squawky Wash-machine Larry Quaky Green Car etc…Now days all but branding!

Saturday, December 27, 2008

A Big Head Thinking

Q: Why people drive big cars?
A: Big tanks to fill
Q: Why governments increase gasoline tax?
A: Big empty coffers to fill

Theme-Less Season

Q: Why people so excessively excited about stimulus?
A: They are all diagnosed as profoundly deeply utterly paranoid and depressed by theme-less season

Become a cool economist!

1. The current economic environment is a particularly hard time to learn economics. There are a lot of topics about which economists agree, but the diagnosis and best remedy for the current economic downturn are not among them. It is therefore no surprise that your econ profs express disparate views about the appropriate policy in the current environment. Don't read too much into this fact. I bet there are many other topics about which these economists would come to similar conclusions. Ask them about rent control, or international trade, or Pigovian taxes, for instance, if you want to find broad areas of agreement.

2. You are lucky that you have professors with different viewpoints. Your job, as a budding economist, is to learn from all of them. Ideally, at the end of the day, you should be able to understand and appreciate (although not necessarily agree with) each point of view. You should try to construct in your mind a debate between your Friedmanite professor and your Keynesian professor. What points would each raise, and how would the other respond?

3. As you come to grips with these various points of view, you will be in a better position to judge which you find most cogent. But don't expect to reach unequivocal positions easily. In my view, it is best to consider all knowledge as tentative. The best scholars maintain an open-mindedness and humility about even their own core beliefs. Excessive conviction is often a sign of insufficient thought, which in turn may be derived from a certain pig-headedness. Intellectual maturity comes when you can maintain the right balance between informed belief and honest skepticism. You sound like you are on the right path.
Become a cool economist! Option always opens, sucks everyone brains in every opportunity, surly that is best way to go! I am a pig-headed, result of “know it all” kind of thing. Well how could I know since I don’t know what I don’t know! Yeah I have excessive conviction fair enough… do you think this is sign of my insufficient pig-headed thought? ---Hooray! Tao text says, foolish ones are trying to justified everything in their situations, then perhaps we all “crazy” they may lock us up a just house for justification treatments. Wealth of digging many waterholes then digs one waterhole so one dries up goes to next to fill up so always you appears to be a full empty headed well equipped and ready to fill up. How can you fill a full tank! The old saying goes “healthy crops are bowing their heads empty crops are standing their heads high!” gosh endless wonder confederation. From now on I bow my head half way make sure not take another extreme! Then people might say I am a spineless! Do you think my shadow still follows? Shadow-less death ohm… how enchanting nice little emails… first time e-mailer but a long time blog reader, what a silly questions for asking about learning economics, I didn’t have to ask anyone how to learn economics or anything else, attention seekers, love your blogs bula bula… answers are lovely doublyyy… I am bit scare of people who never make mistakes – I put my pair rollerblades running away 1000kph…

Thursday, December 25, 2008

Merry Christmas

Merry Christmas

Ukraine Melt Down...

G’Day Australia

“Australia…is that the country is suffering from a “lack of fashionability and buzz”. A two-year campaign built round the slogan “So Where the Bloody Hell Are You?” only made things worse: some countries judged the campaign gauche, others a turn-off.”
What the fucking mean “lack of fashionability and buzz”? look at her; her burning blazing red copper soil and lush breasted shorelines, lone long endless distant beauty make you heart break and awes. Gosh what the fucking you are talking about English aristocrat asses. O man you don’t or no more licking that kind inutile-impotent aristocrat stinking ass and pimping to her blazing burning womb! NO more! Can’t you see her row flesh, her wild fertility and vitality? She is the splendors, has her own throne! She is not your piece meal second rate whore, she is the very BEST!

Australia, my first encountering, flight from Tokyo – Fiji- Sydney – Ali Spring –Uluru(Ayres Rock). Mid summer, Ali Spring air port I saw this intense heated mirages. And Uluru, she knocked me off from the ground. She never said to me “Come say G’day” or “So where the bloody hell are you?” She never asks you come to her but you go to her OK yes you go to her not the way around! Why should she go to you? Her ragged vast distant, emptiness endless silence, her intoxicative scented red soil, she touched and ruptured me! The vividness vitality life- no symphony this earth, no stanza, no beauty under this sky to compare - imprinted in my head, everywhere I go I hear her blazing sound of silence calling, make me cry, tears in my eyes of longings! So if you wanna your brain spin right direction to see her majestic magnificent, put a gun in your mutton head make shivers gone thought your spine! Then you know what I mean! Gosh wonder why blood boiling all the time!

Wednesday, December 24, 2008

Botox Economy

Old worn out economy Botox; stimulus injection all part of its body for winkles twinkles; face, cheek, lip neck, breasts, nipples, belly tuck suck, hip tuck suck, tight tuck suck and toes tuck suck? What else? heheh ugly bee sting lips people kiss kiss...

Tuesday, December 23, 2008

Economics of English food

Traditional English food! umh, must say has a bad name. I wondered why it has a such reputation, this Krugman’s article says the clues. Supply and demand not meet because of transportation. This has happen for long period of time so people missed or lost developing discriminatory ability to what is good and bad. So they eat frozen peas and potatoes Yark! Talking about Marcel Proust’s In Search of Lost Time, all my senses are suckers of past things. That is why my eating habits can not get away the traditional Korean dishes which beyond my ability to cook them. Especially I love Korean traditional cake. With my obsessive nature or temperament I development bizarre sets of menu myself only; no one eat so strange; i.e salad; cucumber slices, bit of carrot slices, spring onion bit of letters, adocado and bit of salt and black papers is my salad no dressing but sprinkled sesame seed oil, and eat with can of salmon, this is close as I can get my Korean dishes. Pancake( American style) for an example, I obsessed it until I completely tired of eating it. I think all western food goes with rich sources I can not digest it so I stop eating them. so I am not a really gourmet in westerners sense, mind you I know good wines! Our family owns a brewery! Economic, is all about people’s life – market, how fast goods transport to market place

A Primer on Quantitative Easing

A Primer on Quantitative Easing - Easy few heads and lots of small bodies
Why do I describe this as an action to stimulate spending? Financial markets are in the grip of a "flight to quality" that is very much analogous to the "flight to currency" that crippled the economy in the 1930s. Everyone wants to get into government-issued and government-insured assets, for reasons of both liquidity and safety. Individuals have tried to do this by selling other securities, but without an increase in the supply of "quality" securities these attempts do nothing but drive down the prices of other assets. The only other action people can take as individuals is to build up their stock of cash and government-issued claims to cash by reducing spending. This reduction is a main factor in inducing or worsening the recession. Adding directly to reserves -- the ultimate liquid, safe asset -- adds to supply of "quality" and relieves the perceived need to reduce spending.

When the Fed wants to stimulate spending in normal times, it uses reserves to buy Treasury bills in the federal-funds market, reducing the funds' rate. But as the rate nears zero, Treasury bills become equivalent to cash, and such open-market operations have no more effect than trading a $20 bill for two $10s. There is no effect on the total supply of "quality" assets.

A dead end? Not at all. The Fed can satisfy the demand for quality by using reserves -- or "printing money" -- to buy securities other than Treasury bills. This is the way the $600 billion got out into the private sector.

This expansion of Fed lending has not violated the constraint that "the" interest rate cannot be less than zero, nor will it do so in the future. There are thousands of different interest rates out there and the yield differences among them have grown dramatically in recent months. The yield on short-term governments is now about the same as the yield on cash: zero. But the spreads between governments and privately-issued bonds are large at all maturities. The flight to quality means exactly that many are eager to trade private paper for non-interest bearing (or low-interest bearing) reserves and with the Fed's help they are doing so every day.

Could the $600 billion in new reserves be called a bailout? In a sense, yes: The Fed is lending on terms that private banks are not willing to offer. They are not searching for underpriced "bargains" on behalf of the public, nor is it their mission to do so. Their mission is to provide liquidity to the system by acting as lender-of-last-resort. We don't care about the quality of the assets the Fed acquires in doing this. We care about the quantity of its liabilities.
A great creativity I think, it is fascinating! It can be done many ways! Fed offers more carrots than sticks

How Not to Stimulate the Economy

The moral of the story: If the government spends a fiscal stimulus package on goods and services without much public value (as in Case C), it could well stimulate the economy as measured by macroeconomic aggregates but leave the participants in the economy worse off (compared with a feasible alternative, Case A). Avoiding this trap requires that the government spend taxpayers dollars only those items that pass a strict cost-benefit test. That is hard to do quickly. Willy-nilly spending is a good way to stimulate the economy only if the outcome is judged by the wrong metric.
Humh, it is not quite simple as everyone thought! After all we need economists, we can not singing sings “please sky kill all these economists off.” Economy stimulus is not same as buying pair of shoes? For an example, if I buy pair of high heel shoe; shop make money – shop assistant paid wage- leather manufacture make a buck – and cow/crocodile farm making a buck - all of these guys go out spending money- buy ice cream – computer – go to dentist etc… is this willy-nilly? OR Australian Victorian Gov- extension highway 1 – tenders Joe’s construction company – Joe hire 100 people for doing the job- 100 people paid wage – 100 people going to spend their wage – pubs, buying bean sprouts for their stir-fry dishes, cars, perfumes for their lovers etc… is this more worthy? what is difference two these? How we are going to cost-benefit-test, that can take ages, as some of investments take years for making profit. Easily can see public good spending then how we measures its magnitude in normal sense? Is this means time and distant in here? What is wrong metric in this regard?

Monday, December 22, 2008

A Love Love Wannbe

“If you teach women they are looking after their family”. I remember this wording which I read long ago. Make senses, not that the articles said all men are arssholes rather teach woman is more effective in terms of caring their family; provide food and shelter and clean environment etc.. personally I am passionate about womens' education. Especially remote area where girls are second rated citizen, education means liberation. They can improve their own life also others around them. research shows that more women educated; decrease infant mortality rate, effective birth control and increase nations GDP. Instead give people a fish teach them how to catch fishes is much more better way of giving things. Yes there are lots of organizations ripping systems off name of charity. But lots of good ones around. Giving is an act of loving I think. I have been thinking in Individual Korean for an example, we are not really giving. Giving other people matter of attitude and compassion. Compared to western nations, Korean are not having that kind of cool attitude, their soul size are not grow same speed as their bank balance, not many Korean people have the sense of common good either. I met a Korean recently; she was hard as a nail, unbelievably cold and sourer as an Antarctica old ice hog-hag, cynics and bitter in her hard life to survival in Australia. Her life all revolved around her only daughter. She says she had never experience of “real passionate love” I wondered what made her life so bitter and unlovable, she can not love other people in return no one loves her! That is scary thing!

Thank you for Young Sun question and to her answering how to love. I hope this directional love guide to give the Korean lady the right direction for how to love. Cool

Saturday, December 20, 2008

Let The People Massage The Economy

Stop looking at models and equations and theoretical constructs for a while and look at the practical considerations of the stimulus package. I've been doing this sort of thing for quite a while and I'm convinced it's doomed from the start. If they feel the need to blast a trillion dollars into confetti, then tax cuts would make the most sense. Even if the public used the money to pay down debt, that would be a good thing as it would transfer the debt burden from the consumer to the government making the consumer feel a little bit like spending again.
This is a great idea. Kill two rabbits one arrow. Pay roll tax cut say 100% ( $trillion worth whatever) instead of $trillion stimulus, let people manage their own money, right away spend, buy ice-cream, condoms chocolates shoes etc.. Since they have extra money in their pocket without creating Federal Gov (States govs that matter)administration chaos let alone its costs. If people spend, it stimulate right way – lead to free market perfect competition. If choose stimulus $trillion and if let the public servant managing the stimulates process, that is going to crazy! Knowing public servants 9 to 5 mentality procession creates another crazy crazy. Even if gun point their head “fast faster” but then creates another layer! It will take ages before the economy response from a cold dark cave. Tax cut is most effective! Then Fed buys few channels on TVs and puts ads saying how good they are because huge tax cut so people are grateful for the Fed’s generosity, lick Uncle Sam’s stinking foot kiss his ugly duck lips saying how glorious his big huge ugly corn teethed smiling!

Absolutely Crazy!!

Signature - Britain's Got Talent - Michael Jackson - Full HD

Seen this before? What a bloody awful - makes us just idiots – forget economy groom doom, need out of the planet!

What Makes a Wealthy Country?

All politically driven so it is not really free trade at all in literally sense. Open all up, leave up to the people whether they like to buy other countries products, put into a competition, so any company want to survive for the free market competition they better fire up their ass 24 hours 7 days work hard to meet customer satisfaction, then they not have to worry about a having no place! Honestly Korean framers need huge of recognition for as major contributors cheap source of food during Korea economy growth, in 1960s to 1980s. Without their huge sacrifices for cheap supply food for city workers, Korean couldn’t have been competitive in internationally during these years- that is all about free market if I am not wrong!

Indirect – Is A Matter Of Convenience

This historical episode is one reason why advocates of limited government are rightly worried about the fiscal stimulus package that the incoming administration is going to propose. Rahm Emanuel, the new White House chief of staff, is reported to have said, "You don't ever want to let a crisis go to waste: It's an opportunity to do important things that you would otherwise avoid." It is not entirely clear what he meant by this. But one interpretation is that he wants to use a temporary crisis as an pretense to engineer a permanent increase in the size of government.
It is waste not want not! You can interpretive many different ways. The old saying goes if you want to really cool, you just ambiguous as much possible, never direct, just around around driving people crazy, like a weathervane; west, east, north and south, which ever wind blow. So no one get at you even if you are getting into wrong steps. Option open up, some time goes to a liver for while to metabolically boggle and next as a regulator goes to a kidney for filtering. So way of surviving around traps without being caught even if you are naughty.

Friday, December 19, 2008

A Niche Market

The ultimate entrepreneur

Wednesday, December 17, 2008

Mighty 0 the Only Way Out

All wow heha 00000000 finally hit the bottom, Bang ouuccch hurt! Are you economy hurt? Wellwow nothingness! It is true, mean everything! You can not compare anything! All form of creation! Ominous 0! Mighty 0! Story goes this greatness extremist fanatics economic is sitting in the dark cave, distress, feed itself dark notion of imagery maiden! Talking its shadow hey sister, we have to eat each others gut out since we are in dark without any light so we can’t scratch our back each other, we are hungry, we just eat ourselves out step by step, it is kind of a body part of funeral ritual, feed a dead part of its survival, hoping re-grow them. So it start to cannibalize itself; for start chop off one toe, foot so on… Mighty 0 the only way out

Update: I think he tired of people link his blog directly

Tuesday, December 16, 2008

Greg Mankiw's Blog: Chu and Pigou

Greg Mankiw's Blog: Chu and Pigou

Name dropping, drag drape of nectarine tree!
Mighty sweet or sour or bitter?
Hope that they are not tough and chewy
But all supertasters!
No place like dark brain cave
They will enjoy their sumptuous banquet of the splendors darkness
Is this mean light on end of the dark tunnel?
Lit on fire?
They fiddle dance kicks sweep and screeched each other back
Waddle ring cycles in their stone tools
Aha finally finally
They find fire to burn
Here they come with fire!

Stay tuned! You know talking about stay tuned, I have been just thinking why my pancake burn all time because I am not staying tune at the fry pan. Why am I forgetting, left it there burn? Because I don’t like thin pancake so in my mind thick pancake is the tasty “American style” so I pour lots of mix at once, and I don’t stand there wait it around until it become golden brown instead I go away doing other things, and burning smell alarming all the time that is why. Beyond my believe even if my fry pan. My friend told me that a real American style pancake parlor just around corner, so I am going to try it and I might ask them a cooking tip.

Greg Mankiw's Blog: How about me? I'm 6' 2"

Greg Mankiw's Blog: How about me? I'm 6' 2"

Economists are paranoid by a pyramidal finality, whole world against tall puppies. Surreally suffer “tall puppy syndrome” so their measuring their worthless. Comfort themselves not to fall because all of sudden they are not really tall! How about me? I am 5’ 6” without high heel of course!

Monday, December 15, 2008

Korean Number One Export Earners

What a point Korean has nominal GDP $20,000 so, still their own children let foreign adoption, What a disgrace! No matter what how much money in your pocket your soul size is not match your pocket size well that is doomed. People maturity grow with economy grow, it is time to ditch gorge of inward looking doggerel old things if it is not serve to the current. I must say, generally Korean are not really caring others, because we brought up as “ TO COMPETE ” , to compete with your neighbors your parents, your dogs and cats, your trees, your rabbits, your moon and sun your friend your colleagues your siblings your relatives, even compete your own shadows, what left us this? you may well ask! It is so intense that our souls are corruption vultures hunting instincts. Yes this cons, the pros are this nasty hunting instincts make Korea as today no doubt that. Here more of International adoption of South Korean children

Greg Mankiw's Blog: A Puzzle from Terrence Tao

Greg Mankiw's Blog: A Puzzle from Terrence Tao

Very interesting, way of feel the numbers differently which I am not familiar this kind of math puzzle or looking at thing this way. But economic point, yeah, why people measured distant instead of time? Distant is not relating cost unless translated into the time so time is cost. That is how I think. Everyone thinking differently I had this a huge fight with accountants trained number crunchers at tender biddings. Just so different way looking at things.

Sunday, December 14, 2008

Greg Mankiw's Blog: Interview with Marty#links

Greg Mankiw's Blog: Interview with Marty#links

Competition, any competition in a market place, business can not survival supplying product alone. Customers unbelievable savvy, in old days you have to go around several different car dealers and found out what you like but now just a click Google do the job you, you just visit few websites you can find out exactly what sort of car you want to buy.
You see this world of economy or trade have been changed from being business itself, to establish to close to customers, long terms customer relationship and developed customization. It is customization war. Car industry same thing, a car itself can not sell only wheels and boxes, instead through relationship business to serve what consumer want. Traditional car markers are make a defect free strong big car and sent it to dealers and customers buy them and after few years later they changed new cars. I love a car, it is my favorite brand car, I love the craftsmanship, it is art and engineering meet together. Super intelligent beautifully crafted, the concept of the modularity is key, modularity relies on standardization initially and then they can mix and match desired component. This process any car manufacture developed individual component. Modularity is key to the designed around system and created flexibility in any system or any industry, it is foundation of the system. I think.

Greg Mankiw's Blog: Wheelan for Congress

Greg Mankiw's Blog: Wheelan for Congress

My Favorite Economics Blogger: Greg Mankiw is a Harvard economist, a former chair of the Council of Economic Advisers, and the author of a popular introductory economics textbook. In his blog, Mankiw does a nice job of posting interesting articles from all kinds of sources interspersed with succinct and insightful comments.
That is why he put this Wheelan on his blog, because he says nice to him so he posts his article on his blog so he scratches his back he scratches his back too!

Greg Mankiw's Blog: The Magic of Financial Engineering

Greg Mankiw's Blog: The Magic of Financial Engineering

An schizophrenia gives a pep talk to his mad house client to:
You should avoid invest an manic depressive economist.
Instead you should put all your egg one basket of hallucinated economists which lack of stimulus in their illuminated mind.
It is a new innovative investment “schizophrenia trend” after this financial crisis.
That is a post natal depressive traumatic investment

Saturday, December 13, 2008

Greg Mankiw's Blog: The Case for a Payroll Tax Cut

Greg Mankiw's Blog: The Case for a Payroll Tax Cut
How about an immediate and permanent reduction in the payroll tax, financed by a gradual, permanent, and substantial increase in the gasoline tax? Make the two tax changes equal in present value, so while the package results in a short-run budget deficit, there is no long-term budget impact. Call it the create-jobs, save-the-environment, reduce-traffic-congestion, budget-neutral tax shift.

Wow lots of Mankiw et al, in their song sheet. Kind of a Romeo and Juliet. Lovely… Ditch old form of stimulus, tax cut is less effective at raising employment. They all sing same songs now the last stimulus songs from the chortled economists– tax cut tax cut song birds sing and stimulus songs an electric wired fence, buzz buzz sing. And he goes on he will be working on a marketing, he goes an a market buy recipes for his new song sheets.

Just Talking

Woo Gee everyone so quite…hush! They are all clawing under their tattered blankets, licking their wounds, little bit of cry with meek tears, go head! Saying “I don’t want be a economist anymore! Wouldn’t be nice all economists dead? So we none-half backed “little knowledge is a huge knowledge” taken over joints, as the old saying goes “ trainee butcher is better killer then the teacher butcher!” Why because fearless, because s/he doesn’t worry so much since they don’t know you see what I mean. So kill kill savagely. I think most economists have cozy safe jobs, so they don’t feel the recession or unemployment that is why they talk so casually, citation each other papers (dare say sometime doggerels, out of flattery). I think they just talk about things they don’t feel or don’t care. Well research paper only doesn’t cap the tap much. Wonder how many economists really go out field research; see real people how they are suffering. They just read news papers, articles and then make comments.

I went out walk on the rain, freezing cold but I enjoyed immensely. Been seeing so many people with dogs and cats (useless), why instead they don’t adapt a child like kittens or puppies. Their eyes like pearls eyes from south sea, gleam with staved love. They melt your cold uncaring hearts. That would be more fun, because the child grows and talking to them, that would be more fun then spend on fortune useless cats and dogs. People have pets purely their own selfishness, unable to love another human being I gather. Or lovable human are not enough around so they choose to love animals. I can understand! I made my pancake, a ready made mix, failed again, hard as like stones, forget a fry pan again. So I ate with it hard rock paper. Compensate with nice glass of wine. I can understand why my pancakes are, will be never same as the “American pancake” because chef is not top chef that is why! By the way, I just went YoTube dug out this pancake, though it looks like not quite same as the American pancake either, hum can’t avoid dairy products completely, all recipes are made from milk, I didn’t know using eggs and lemons. I could try it next time

Friday, December 12, 2008

Greg Mankiw's Blog: Another Member

Greg Mankiw's Blog: Another Member
Hilarious! Some years back I stayed Vancouver for sometimes, one stage I was thinking settled there, beautiful city seafood, sunset and romance. Yes enchantment, nice people. An occasion we had to catch plane from Seattle to Far East. So I decide too drive from Vancouver to Seattle. At the boarder, we had a break, went to a restaurant. ordered pancake breakfast, you see I am not really good at ordering my dishes from a menu, always someone helps me( usually waiting staff) or someone just order for me what I like. They usually know what is my like, very simple things. You see I am not a gourmet. I am not sure before this occasion I had any American style pancake breakfast but in my memory this was the first my encountering American style pancake breakfast. I can’t remember what was happen my order but, finally my pancake dish arrived! O man you don’t believed my breakfast. The voluptuous pancake lady hold sweet beaming smile behind huge sausages and bacons plate! Dishes were warm and tick, fork and knife, no nonsense! Have a nice hearty breakfast, beaming smile! A huge mug of coffee too! What a hearty huge generous hospitality! Never forget that I avoid her eyes contact until I left the restaurant because I couldn’t fulfill her wishes having a hearty pancake-sausages -bacon breakfast. I couldn’t explain to her I am allergic for meat. But I have never had a tasty pancake in my life. So ever since I try to make my own pancake I burn to scum, because I put a fry pan and I forget about it usually, and burning smell makes me jump so I never make the perfect amazing American style pancake! Anyway I always tell people “the pancake” how American make everything a huge, the hearty American pancake breakfast! But not a hearty American car?

Humh, economists forum! They are all congregate, scare to death now! Because whole world might against them so they say “we stick together the road of survival, spilt is road of graveyard!” Glued their brains a gasoline chortle!

Thursday, December 11, 2008


ALL YOUR FAULT, ECONOMISTS!I think this economic crisis is all economists faults. Because they called themselves economists and this is the very economic problems and years years they study in the economics, why then they let his happen? Huh? Like if a child staved death the mother should be punished not the nature first instant or a surgeon killed his patient during a surgery he is the blamed for his negligence. Both the mother and surgeon have to have a good reasons to get away with their legal justification but still tarnished by moral conduct. But then an economist saying “well let Genie out of the bottle, rant rampage is not only my fault but everyone’s’!” start with the root was rotten, too complex to diagnosed just one spot…bluff blula blula… wonder what went so wrong? I am still asking.... AND we all SINCERELY hope that they have sleepless nights, scary scary nightmares and cold sweat until they make Genie get into her bottle

Greg Mankiw's Blog: Spending and Tax Multipliers

Greg Mankiw's Blog: Spending and Tax Multipliers:
By contrast, recent research by Christina Romer and David Romer looks at tax changes and concludes that the tax multiplier is about three: A dollar of tax cuts raises GDP by about three dollars. The puzzle is that, taken together, these findings are inconsistent with the conventional Keynesian model. According to that model, taught even in my favorite textbook, spending multipliers necessarily exceed tax multipliers.

How can these empirical results be reconciled? One hypothesis is that that compared with spending increases, tax cuts produce a bigger boost in investment demand. This might work through changing relative prices in a direction favorable to capital investment--a mechanism absent in the textbook Keynesian model.

Suppose, for example, that tax cuts are not lump-sum but instead take the form of cuts in payroll taxes (as suggested by Bils and Klenow). This tax cut would reduce the cost of labor and, if labor and capital are complements, increase the demand for capital goods. Thus, the tax cut stimulates demand not only by increasing disposable income and consumption spending (the textbook Keynesian channel) but also by incentivizing more investment spending. A similar result might obtain if the tax cut included, say, an investment tax credit.

The breastpiece of resolution should be made. The High Priest who crafted his work with wisdom of symbols and words “he must understanding the present of light of the past for purposes of the future”( Keynes) embroidered like the ephod. Say people take $1000 per week instead $700, because of tax cut, he surely spend this $300 immediately if not all least partly. I mean what is so coy about stimulus, if you want HAVE earth shaking multiple peaks = it have to be huge robust BANG not only once but continuously…! Think about it the very act of act stimulus not economist sense but biology senses. when a system shut down because of depression indirect subtle brain bonking doesn’t excite you much but direct encountering is much faster better peaks. Gosh what a squadron! How dreary saying like “ email me bula blua..” everyone email to everyone nothing magic about emailing I email everyone everyday what a boring email, it must be tailored tasteless cold turkey tacky full blown measles fat scum only!

Wednesday, December 10, 2008

Greg Mankiw's Blog: Measuring Your Worth (Academics Only)

Greg Mankiw's Blog: Measuring Your Worth (Academics Only)
What a strange thing – that is how academen measuring their worth, wonder why so many them have low-self esteem. It is really doggeries factors, lots of factors left out. I don’t know how they work but, how about x-factors, like the “outerspace” kind of things. Immeasurable force within us. makes us think the way how universal work. I am not sure I am talking correct or not anyway I am right because I say so because I am an immodest beast so what I am saying is not always correct in a norm(?) sense Ok, but I must say I respect good teachers, mind you my forebears laid a foundation of a school. As I am deadly proud of it, so when I see a good teachers I always compare to our little village school teachers- the principal teacher also teaching, spent his salary paid to poor students so that we all can go an excursion! The only teacher(only human probably) ever in my memory never scolded me, my unguided pouring dreadful sometime rude insensitive questions. Who imprinted me love of world of literacy, nature(I excelled biology in my high schools), history, different way of thinking numbers, not an algebra at all but geometry. My questions just come out what I see through my two eyeballs as automation in my tongue. But I also understand teachers also human being same as any profession, same as good managers and bad managers

Greg Mankiw's Blog: Cooley on Mortgage Restructuring

Greg Mankiw's Blog: Cooley on Mortgage Restructuring

The most important role for public policy is to provide incentives for servicers to restructure and modify loans, to make certain that shared appreciation contracts are part of the policy mix, and to address the legal barriers to modifying securitized loans. It may well be that policy inaction and dithering is the largest barrier to progress to date. Households and investors may be holding out for better terms, bigger bailouts and for investors to be made whole. If so, it is simply because the leadership in Washington has been unable to focus on an unambiguous approach to the problem. In the meantime, neighborhoods collapse.
Always come to the government and policy. I am not sure who are the people made the policy first place but they should be deadly wise men of integrity. I see, Laying the foundation, the root should be strong and agile - bit of like a faithless whore, who only faithful her profession - so that any force can’t make them broke, make them effective and stable, that gives people security for long-run and that lead to a nation prosperity and the healthy planet so on… Then who is the High Priest?

Greg Mankiw's Blog: Bailout, Italian-style

Greg Mankiw's Blog: Bailout, Italian-style

An economist might suggest letting a few producers fail, so supply shrinks, prices rises, and the remaining producers become more profitable. In fact, that same logic might apply to some other industries as well.

Yes, perfect competition is divinity sprit of free market, market adjust itself guided by divine invisible hand. Government should not intervene a such divine hand. Should stands as a regulator and observer. It should not creeping into free market interfering, alarming bell for future parmigiano cheese industry. Any way I am not a daily product eater so it doesn’t worry me whether cheese industry exist or not. An economic point of view, visible hand threatening the industry longevity

Tuesday, December 9, 2008

Greg Mankiw's Blog: Investment: Then and Now

Greg Mankiw's Blog: Investment: Then and Now

This graph show residential investment (in red) and nonresidential investment (in blue). Notice how strikingly different the two recessions are. The last recession shows up strongly in nonresidential investment, while residential investment hardly notices the downturn. This time, residential investment takes a big plunge, while nonresidential investment has not been much affected (yet).

More evidence that business cycles are not all alike.
What is this mean? Still economy is ok, still room to maneuver?.. What it mean business cycles are not all like?.. how many cycles are there for business? How many difference ways to measure cycles? Some sectors are wretched yet other sectors are may ok . That is what he is saying? hoope always nice bit of hope…

Greg Mankiw's Blog: More Competition

Greg Mankiw's Blog: More Competition

Wow he scared now so many competition! Past student post student all blooggg

Greg Mankiw's Blog: POTUS-elect declines membership#links

Greg Mankiw's Blog: POTUS-elect declines membership#links

Exclusive utter butter creamy exclusiveness, well that is the way to go! Uultra the way heavenly brains membership club! People who only talk about $billions around table! Justly jaw dropping Pigou Club...

Puzzling Question update: Do you know what is mean a “super stud club”?

Tumbling update : I think he might actually really angry and because of offensive question, but I am scared at all because I have lots experience and I am a tick skinned and have armor-plated nerves

Greg Mankiw's Blog: Downsizing

Greg Mankiw's Blog: Downsizing

Downsizing - Shrinking your brain! Now listen everyone wealth management class, shrink your brain a pea size and looking into eyes of wealth in your pea-brain!

Monday, December 8, 2008

Greg Mankiw's Blog: Discretionary Fiscal Policy

Greg Mankiw's Blog: Discretionary Fiscal Policy

“—is about monetary policy, not fiscal policy. It never crosses anyone’s mind that
Greg Mankiw might be more influential in formulating stabilization policy than Alan Greenspan…”

Woah I didn’t realized that! definitely he has the Excalibur! Listen everyone, it is nothing a magic, just hard work, rise early like sun goes bed later as a wolf so you can see whole owls world! Gold hilt shining chimes, here is jacinth comes with his ramous

Greg Mankiw's Blog: How to Avoid the Menu Cost

Greg Mankiw's Blog: How to Avoid the Menu Cost

Actually amazing, smart idea, instead change menus just add and mines, you really feel, the economic is a real life story – I have not seen this type of bill before, good! I have notices that slightly increase prices at my regular eat-out at around corner. I thought that was fair because of inflation, but in here actually separate “inflation surcharge” so what happen than if this inflation down to the road again and change again, this time lower the price? Saying “no inflation surcharge” mines sums of sum?

Greg Mankiw's Blog: Hall & Woodward on Stimulus Options

Greg Mankiw's Blog: Hall & Woodward on Stimulus Options

In 2009, GDP in the U.S. is expected to be about $900 billion below its normal growth path. The ideal stimulus would have most of its effect in 2009 and would close a reasonable fraction of that gap. We see five general strategies for stimulus:

• Further expansion by the Fed
• Income tax cuts with rebates, as earlier this year
• Tax cuts that reduce the prices of consumer goods temporarily
• Tax cuts that reduce the cost of labor to businesses
• Increase in purchases of goods and services by state and local governments
Last night I sat my fovea riverside, was talking to the moon, you know what a wonderful seamless moon was, always same cycle, new full waning, life is all about cycle, economy cycle also. I have been thinking through my learning about economy cycle. Cycle itself itself, self saturated power to every living thing. This is not new it is old thing, old texts are full based on this. Hoping due to course all nicely sort itself out…

Greg Mankiw's Blog: Goodbye, Auto Industry

Greg Mankiw's Blog: Goodbye, Auto Industry

Chinese whispers

There is a real finest arsshole in the world
There is a real finalized arsshole in the whole world
There is death arsshole in the whores’ world
There is a whore finished off her scumbag arsshole
There are bodies scumbag arssholes in the hall
The whore burnt off arssholes scumbag
The fire destroyed arssholes’s scumbag whores
They cremated arssholes in the fire
The scumbag arssholes are all gone
Scumbag arssholes are all at their homes

What a Ripper Update: Whoosh finally Prof Krugman is collecting his gold medal, like Olympians he should put the gold medal in his mouth and tastes of essence whether that is real or not

Sunday, December 7, 2008

Greg Mankiw's Blog: Life in the Left Tail

Greg Mankiw's Blog: Life in the Left Tail

By the way, from February 2003, when a particular blogger I know was appointed to chair the Council of Economic Advisers, to February 2005, when he resigned to return to Harvard, the stock market rose almost 50 percent. Just saying....
Well not just saying, it is true, everyone knows it! I think an important public post least 4 years instead of 2 years, it is too short for doing anything, before start already finishes. It is an interesting histogram! Can see whole thing at a glance.

Saturday, December 6, 2008

Greg Mankiw's Blog: Christmas Inflation: 8.1 Percent

Greg Mankiw's Blog: Christmas Inflation: 8.1 Percent
Carnival of the Inflation

Ones for on time
There is economics crisis
Decimal beasts gather CPI basket
Inflation ball under starry night
Masquerade slops of right and left
Up ward, toward down ward inward
Depression impression rattling battling
Skelton ghostly consumer basket dance
Drumming piping leaping dancing milking
Rings laying, calling hens turtle doves
Wanna swan song here dance
Prehistoric inflation deflation
Wanna fossils dance wassail steps
It is hilarious bilious to extinct

Greg Mankiw's Blog: Mortgage Forgiveness as a Tax Hike

Greg Mankiw's Blog: Mortgage Forgiveness as a Tax Hike

Consider a hypothetical example: You and your spouse were both employed in 2005, at which time you bought a house, took out a mortgage equal to four years' family income and committed to a monthly payment about one quarter of your family's monthly income. Today your house is worth three year's income. To add to your injury, your family income is cut in half because you lost your job. Your housing payment is now more than half of your family income.
The profit motive, not sympathy for the unemployed, makes banks willing to implement the formula: Collecting some of their debts—from borrowers who are "able to pay"—is better than not collecting any at all. As affected borrowers (or borrowers who anticipate that they too will be affected) earn less income, pay less federal and state taxes and receive more unemployment benefits, the 38 percent formula siphons tax revenue out of public treasuries even while it helps banks improve on the collection scenario for bad loans. Rather than promoting the 38 percent formula, the federal government needs to rein in this practice by regulating it or by repudiating part of the mortgage debts without regard for the borrowers' incomes.
Well, amazing stuff, we live amazing time everything possible, everyone thinking outer box, queued out their brains, spread untidily, but this make tidy up again who cares current untidiest.

Terrible employment numbers

Most commentary on the terrible employment report has focused on the establishment numbers, because the number from the household survey that usually makes headlines, the unemployment rate, didn’t rise all that much. But the jobs picture from the establishment survey looks terrible, too; what held the unemployment rate down was a reduction in the number of people who said they were looking for work.

The chart above shows the employment-population ratio, the ratio of employed Americans to the adult population. By this measure it’s been a weak economy all along — and now it’s falling off a cliff.
Here is today Krugman’s blog, scary tactics of his indulgence – people shiver gone thought their spine who read this, tries to scare us off hell, then where we go? heheh after burn off from the hell fire, then what happen? We rise again as firebirds, rise from our own ashes-nest, raising again as glittering firebirds

Greg Mankiw's Blog: Deflation Alert

Greg Mankiw's Blog: Deflation Alert

Aha he is saying the old hags are present true value( sum up all baggage) and young mistress bonds nominal value only, we must looking at things hard and wisely - able to see old hags ugly price then pretty young things pretty price. So he suggestion is “ Fed, whether you like it or not you have to bed with your old hag!” Gosh who would like to bed with cold turkey old hag! Unless send her off 5 stars resort for life- invigoration: knife in here there, tuck-suck in here in there, and pampered by scented oil and gigolo massages day and night for rejuvenation

Greg Mankiw's Blog: A Pigovian Tax on Cows

Greg Mankiw's Blog: A Pigovian Tax on Cows
Wow nice cows, nice creamy products, feed ideal society, well beefed people well nourished society, that is root of formation good ideal society! Cheat, extravaganzas and pompous are glory of lovers an ideal society!

Greg Mankiw's Blog: Chetty to Harvard

Greg Mankiw's Blog: Chetty to Harvard

Harvest brain, an ideal virtuous composition of brainwashing catalog

Greg Mankiw's Blog: Ed Gleaser on Subsidized Mortgages

Greg Mankiw's Blog: Ed Gleaser on Subsidized Mortgages
America's housing woes are, in part, the legacy of government policies that pushed consumers to borrow and banks to lend. The home mortgage interest deduction encouraged people to make leveraged bets on housing, which looks silly today amidst the wreckage of over-hyped housing markets. Since the New Deal, the federal government has thought that it was a nifty idea to use its borrowing power to encourage home buying through government-sponsored agencies like Fannie Mae and Freddie Mac. The political beauty of such policies was that they subsidized borrowing and buying in a way that could be kept off the balance sheet. For years, policy makers maintained the fiction that Freddie and Fannie didn't cost taxpayers anything.
Yes root is rotten every leaves uselessly tattle tootle. I think the problem is that most policy wonkers time fillers. Nice cozy salary man thinks themselves. Gives away consults to do jobs for them. No one foresee what is going to happen 30 years after if they screwed up policies. complex creates administration nightmare-monsters - next come they don’t want to do anything else because “too risky and too hard for them to do dirty job” and also don’t want to be an outsider, “not singing same song” as others. This going on on…. Work that truly touches our heart we than least can think bit more kind way all around us, bit further not just where you stand and a pay check.

Greg Mankiw's Blog: Listen to me squawk

Greg Mankiw's Blog: Listen to me squawk

Listen to me I will squawk your brain out of your buzz box! He says. I can tell you everything; start from fiscal policy, it is nothing to do policy at all. Smith says, it is all about distribution of necessaries of life in general, from here you can think the earth has two equal pies, portion all inhabitance, we share! and are you all agree? Than here Smith goes on “… advance the interest of the society, and afford mean to the multiplication of species…” we have had enough this goose doom, we bit nice to ourselves, think about it if you kick the bucket tomorrow all these meaningless craps so think that way, thank to your “god” if you have one or thank to yourself if you “no-god” bless yourself how lucky you re, as you live this buggery chortled providence we call it ourselves home the Earth

Greg Mankiw's Blog: Where's Joe?

Greg Mankiw's Blog: Where's Joe?

Missing person

Name: Stiglitz, Joe
Height: Sky rocket
Weight: Carries a great kilometer blow octagonal dimension
Eyes : Crossover or bridge top blue
Area gone missing: upper Amazon jungle where lots of zombie drug
Possibility where about: Tetrodotoxin- kingdom-of-heaven master
Distinctive features: Long and steady looking, abundant of zodiac other space, distant dot-tut- dot, have gold necklaces engraved his octagonal perpetual fountain
Beware : His brain inexhaustive answering machine in a tuff so he is not easily in a trap
Award: Winner takes all, after all whoever catches him you belong to him and you belong to you. That is the new deal

Thursday, December 4, 2008

Greg Mankiw's Blog: A Headline for the Pigou Club

Greg Mankiw's Blog: A Headline for the Pigou Club

He is gone to china today, hoping China become his Pigou Club pure ego. He is away from old splendor Ani. He interaction between his “ Pigoe Club” and his “gasoline tax” it is a practical breeding his image. Goes everywhere wherever they offer spiritual of “gasoline tax”. The very essence of clean air- economist point of view not as an environmentalist- get into his butchery conviction of our daily life of selfish butchery soul

Greg Mankiw's Blog: The Case for Inflation

Greg Mankiw's Blog: The Case for Inflation
The necessary policy actions involve aggressive macroeconomic stimulus. Fiscal policy should ideally focus on tax cuts and infrastructure spending. Central banks are already cutting interest rates left and right. Policy interest rates around the world are likely to head toward zero; the United States and Japan are already there. The United Kingdom and the euro zone will eventually decide to go most of the way.
Certainly, a key part of the solution is to allow more banks to fail, ensuring that depositors are paid off in full, but not necessarily debt holders. But this route is going to be costly and painful.
Fortunately, creating inflation is not rocket science. All central banks need to do is to keep printing money to buy up government debt. The main risk is that inflation could overshoot, landing at 20% or 30% instead of 5-6%. Indeed, fear of overshooting paralysed the Bank of Japan for a decade. But this problem is easily negotiated. With good communication policy, inflation expectations can be contained, and inflation can be brought down as quickly as necessary.

Geni go back go back your bottle! Plea please go back to your bootlegs bottle, stop make us printing money $1billon note! Geni running track is Zimbabwe. If I wear the Genie keeper, I beat her ass purple blue gold red, until she is surrender! Completely knock out flat, she can not move, few bons are broken. She will say, I wann go back to my tilt teal bottle I have had enough this crap. All your assholes get stuffed on flat line!

Greg Mankiw's Blog: Marriage over the Business Cycle

Greg Mankiw's Blog: Marriage over the Business Cycle

Hee hehe arrange marriage humh, match making, meet market(correction from meat market, I used a wrong word), very personal experience number of times. They said it was a “heavenly match” the guy astrology and my astrology perfect coupling, the union promised : wealth, longevity prosperity and breeding of course! They made sure I grow blameless a little docile breeding dog for pure breeding. They checked my mails, confiscated my mails and made sure I was not stray, not getting into for “ruining” guarded like a wolf. Funny stuff I could write this someday. But fair to say, some research shows that actually “match making” good for certain extent. Probably checked both sides back ground thoroughly, when you are in love you don’t care whether this guy is arsholes or tattooed criminal records in their butterfly back, fucked your soul inside out from a dark ally, as scumbags criminals characters are more thrills to certain women then nice well breed collage profs as they say. Scent of danger breed a certain excitement…

Wednesday, December 3, 2008

Greg Mankiw's Blog: Congratulations, Team Harvard

Greg Mankiw's Blog: Congratulations, Team Harvard

Winners or the victor are future-oriented man of action, self achiever yet encourage other to archive, participant of his life fully but not harm others and self possessed. On the contrary the losers - Hymm to Hermes says he/she “is litigious skillful at making worse appear the better reason, he lies brazenly to Apollo. He tries a mixtures of trickery, bluffing flattery and cajoling to persuade Apollo to let him keep the cattle…” but end of the day he gets cattles Nob. He is been striped everything off. Because s/he has no grace no soul no personal control just greedy exploitative personality social step ladders, ambitious yet without credit basically his soul is rotten! Any way nice to have great victors, with credits with decency and grace!

Greg Mankiw's Blog: AS, AD, and the New Deal

Greg Mankiw's Blog: AS, AD, and the New Deal

Wow they scratch back each other

Devil eyed Prof Paul Krugman wrote this wonderfully simple AD AS thing, 12/2/08. I think. I read somewhere he is a cat lover. Wonder why he loves cat? Cats are most selfish bitches you know, they just take everything never give you anything back. They can be very evil if you compete with them with love, I bet his cats are very selfish possessive, nasty clews around his affection. Wonder where his gold medal is, probably he loves his cat so much put its neck take pictures and framed, telling cats that “this is recognition of your warm selfish love!

Greg Mankiw's Blog: Morning Reads

Greg Mankiw's Blog: Morning Reads

Well why should I read this in the morning, but I am reading anyway. Bit weird, he continuously posting thing below all the time. Up down. Defiantly he is irrational! Talking about irrational is not magic at all. Irrational garmented rational For an example. If anyone tell me “you must run every single day without fail” I definitely say “Nob”. Why my “NOB” is rational? Because perfect response form ME” I am me therefore Me is the owner of me I am the commend of me not you of course! Believed or not! Non-involvement is a form of involvement. Tao we find most wonderful contradictory irrational rational. Mindfulness where it takes me to know what is in it and I read it to myself and make me thinking that our inner world full of weird irrational but make perfectly rational. Lao Tzu says “ do that which consists in take no action and order will prevail” what a ridicules sense, how could you success without any action. Or oriental philosophy tells “detachment” but detachment itself full of attachment, you can not detached yourself something that you are not attached to it. Are you agree? From afternoon reading

Greg Mankiw's Blog: Kudlow & Company

Greg Mankiw's Blog: Kudlow & Company

From today I too, spend and demand economic thinking, bit wonkish! That makes me safety side, either way I can’t be wrong. So no one knows how much I don’t know, they only know how much I know- this gives me a upper hand – a coolest girl around traps. Pretend is best option where you are not sure. I have been thinking why we have to dragged by this economic? Why can we lethal injection this monster so we can clean our hand from this dirty business! Then what happen, gee scary! How instinctively blur! Yes within all things. Dark confused? No worries, it is all mental power, having not having will be all sorted out free flowing cycle. Everything is cycle, you and me and the economic! Ok here imagery guy popping out TV saying tax holiday is best solution. School backyard congregation. Animation in utero, tax morality! Cool sounds like really smart laic humh! Amazing how world so small, few pantheistic bundles dominants world economy. You can imagine almost 7 billon people in their brain pocket. They all come from same schools, scratch each other back, demand and supply wears nomadic garland each others steps. Income and cooperate tax cut is the key to stimulate economy more effectively ( fast direct) through private and cooperate investment. Any tax cut is good except few areas. At current any well informed person would say government spending too help speed up fixing this monotheistic apparent

Tuesday, December 2, 2008

Greg Mankiw's Blog: The Bils-Klenow Stimulus Plan

Greg Mankiw's Blog: The Bils-Klenow Stimulus Plan

Intriguing idea. In light of my post from yesterday on fiscal policy puzzles, I am especially attracted to the goal of robustness: we should try to find a stimulus plan that works under a variety of alternative business cycle models.

Aha! What a convenient! If anything he puzzles(I think he actually bit of bullshit! Pretend he is puzzling) anyway he posts something in his blog and waiting see people emails in, that is how he collects information. He is a spider, weaves nice silky webs and ensnare, pearly mists decorates dangle dangles sunshine sprinkles twinkles happily into an entrapment, that is how he preys nice juicy mystical robust things in his web. Robust thing it must a young-whore-stimulus. You see when you are in heat, head to toes. It is called a heated slut, sleeping around, goes everywhere! What he is saying is, he is deadly keen a heat- plan is like a robust slut fits into everywhere every circumstances for everyone, get heated all the time, indeed she-stimulus-plan is super slut!

Greg Mankiw's Blog: Real interest rates plunge!

Greg Mankiw's Blog: Real interest rates plunge!

TIPS offer asymmetric inflation-protection. If the price level rises, your principal rises as well. But if the price level goes down, you get your initial nominal principal back. (Don't believe me? Click here.) A new TIPS bond is great when there is risk of deflation. It is a real bond if prices go up, but more like a nominal bond if prices go down. Heads you win, tails you win also.

An older TIPS bond, however, is not as attractive. A lot of price inflation is already built into the adjusted principal. All of that inflation has to be undone by subsequent deflation before the nominal floor on the principal kicks in. As a result, when there is risk of deflation, the older bond has to offer a higher yield to compete with a newer one.

In other words, after a period of inflation, an older TIPS is closer to a true real bond, whereas a new TIPS is an attractive hybrid. This fact could explain the large jump down in the inferred real interest rate when the Treasury changed the raw bond data it uses. And it can explain why the issue became significant only recently, as people have started to seriously worry about deflation, inducing Treasury to change its calculations.

Cool what he is saying is that true real bonds are old hags, lots of inbuilt baggage; worn out and new bond is attractive hybrid mistress bonds no baggage. New bond is more nothing to loss, either side coin you win, gosh indeed attractive slut, not one side but goes every where. Hag bonds risky because not only inbuilt in baggage she carries, but also when deflation, must grantee a higher yield for competing mistress TIPs. Hehe, whoever hold old hags as investment is losers and who has new mistress bond winners of life. Why not then people is not ditch their old hag? That is question

Greg Mankiw's Blog: The recession began December 2007

Greg Mankiw's Blog: The recession began December 2007

Q: How do you know recession start from year 2007?
A: It is a quota final definition.
Q: What causes the recession?
A: Lack of definition, economic is all about definition!
Q: When this recession will be over?
A: O, we will make that definition in due to course!

Annoying update: Why are you posting new thing at below all the time? Now I have to look below all the time - expects us head standing and universal twist, boa!
From now one looking things down! I suppose a recession viewing

Greg Mankiw's Blog: Fiscal Policy Puzzles

Greg Mankiw's Blog: Fiscal Policy Puzzles

Shock horror! First whoever read this blog please go to see the Prof Mankiw blog first and after read this then you would understand what I am going to say in here. You can imagine we all know that they are gurus, all are juicy grapes from well nourished fertile soil, ripen together same grapevine, fermented into a chaplain-squad baize stronghold. Air tight – bosom bodies. Before this crisis, Keynes, the king of macroeconomic who build theory of castle spending stimulus etc.., now here is his followers saying that the castle build by sand, and danger of washed away by this up tide crisis. You see the castle never attack before so 60 odd years it has been a greenery fortress. Now tectonic wizs saying, lost clarity of the theory of castle because It was built by sand, and saying puzzle guzzle muzzle, so I am asking myself, it is burden of proof much difficult then sin itself. Well people like us, learner by a text book where we stand for this historical wayside?

Monday, December 1, 2008

Greg Mankiw's Blog: Passing the Buck

Greg Mankiw's Blog: Passing the Buck:
In my view, these arguments are cogent only under the maintained assumption that there is no good alternative to fiscal expansion. If our only choice is between (a) full employment with a large budget deficit and (b) depression without a large structural budget deficit, then by all means let's choose (a).
One thing all economists agree on: If there are public investment projects that pay a high rate of return, those are worth paying for, even if it means more borrowing. But that is always true. Even if we were at full employment and there were no possible employment effects of fiscal stimulus, we should undertake public investments that pass a cost-benefit test.

In this regard, two observations come to mind. First, since most infrastructure is used locally, the proper level of spending is best determined by state and local governments rather than by the federal government. Earlier, I suggested that fiscal stimulus could be decentralized. Each state governor could be allowed to determine whether to take federal money as state aid or have it paid directly to his or her state's citizens as tax relief. I still think that makes sense.

Second, more public projects would pass a cost-benefit test if we repealed the Davis-Bacon Act. This law requires contractors on these public projects to pay "prevailing wages," which are typically union wages well in excess of what would occur in a free market. If the government paid market-determined wages for infrastructure projects, we could have both more infrastructure and less government debt. Without doubt, that legacy would benefit future generations.
Here is the good old Uncle Sam comes with job. Yes, state governments, all the projects put tenders – free market, create quality work, any agencies interested in the projects, bidding it. Project by project, but beware cheap price mean not necessary promise quality work. I am not really sure what is “Davis-Baco Act” but if the Act prevent free market wage then it has to change too.

Caring Update: all these “breeders” deeply caring their future grandchildren, they all want piece (not a peace) of mind in their underneath marble stone or air, they want their grandchildren visits their “no grave yard” to tell them “ thanks grandpapa, because of your caring I am a fat immobile, live in a air tank cage paradise”

Greg Mankiw's Blog: An Occupational Hazard

Greg Mankiw's Blog: An Occupational Hazard

Surprise! Nob it is time for awakening. Every shadows have lights, day and night are mate of a heck master, minds are swell thaw for advancement

Greg Mankiw's Blog: Sounding like an Economist

Greg Mankiw's Blog: Sounding like an Economist

Oolder and his hag are walking sunset bulavoue

Man: Are we approaching somewhere? Where are we heading for my bosomed body?
His Hag: Newest happiness near, or a day or a night either awe-striking opportunistic blaster near! We are heading for a virgin land!