The Flinchum File
Thoughtful Economic Analysis and Existential Opinions

Dirty Words

12/10/2018

Like most people, economists like to argue.  However, one idea that almost all economists agree with is:  “If you want less of something, tax it.  If you want more of something, subsidize it.” Otto von Bismarck said:  “Politics is the art of the possible, the attainable — the art of the next best” The president of … Continue reading Dirty Words

Fox Failed Trump

12/09/2018

When I go to sleep at night, I reluctantly relinquish control of the TV remote.  By then, that poor piece of plastic is exhausted, breathing heavy, and sweating profusely.  That’s because it has been worked so hard — after all, every commercial break requires a channel change. In the never ending search for a balanced … Continue reading Fox Failed Trump

Layers of an Onion

12/08/2018

Many years ago, the mentor of Warren Buffet was Benjamin Graham.  He taught:  “In the short run, the market is a voting machine but in the long run, it is a weighing machine.” Colleges teach us that the stock market reflects both current economic conditions and future expectations.  It weighs economic data.  Today, the economic data … Continue reading Layers of an Onion

Importing Trouble

12/06/2018

Inside our country, the stock market has been fretting over the possibility of slowing growth in corporate earnings and GDP, as well as rising interest rates, an ominous yield curve, the trade war, and the perpetual political circus.  As if all that was not enough burden on U.S. investors, we just imported two more – … Continue reading Importing Trouble

Importing Trouble

12/06/2018

Inside our country, the stock market has been fretting over the possibility of slowing growth in corporate earnings and GDP, as well as rising interest rates, an ominous yield curve, the trade war, and the perpetual political circus.  As if all that was not enough burden on U.S. investors, we just imported two more – … Continue reading Importing Trouble

Yield Curve Over-Reaction

12/05/2018

Think of buying a bond like loaning money to a friend.  If he must repay the money tomorrow, there is not much that can go wrong before then.  However, if he must repay you in twenty years, there are many things that could go wrong, and you might not get repaid.  An example would be … Continue reading Yield Curve Over-Reaction

Wrong + Wrong = Right ??

12/04/2018

Democrats did a bad thing!  Back in the 1930’s, they introduced the concept of gerrymandering in Virginia.  Instead of voters picking their legislators, the legislators picked their voters.  Hiding behind the valid concept of redistricting, which is required every ten years following the census, the Democrats packed Republican voters into as few districts as possible.  … Continue reading Wrong + Wrong = Right ??

R.I.P. 41

12/01/2018

There are good Republicans and there are bad Republicans. George H. W. Bush was a great Republican. More importantly, he was a good and decent American, who will be missed. Rest in a well-deserved peace . . .

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