The Fed’s primary
purpose: The Fed a stabilizing force for the US banking system—The 1800’s
saw repeated scenarios like 2008 due to this fragmented arrangement (in fact,
there were 6 depressions in the 1800s). Instead of relying the money supply by privatized
oligopolies, the US introduced the Fed to allow the money supply to be elastic
and based almost entirely on a market based demand structure. It allows a
nationalized banking system that helps create oversight and order in a market
that would otherwise be fragmented. [Note: The real question is, is the Fed
doing too much?]…Source: http://pragcap.com/understanding-the-feds-primary-purpose
The underappreciated case
of US energy propensity: The fact that US could become a net energy
exporter of natural gas by 2020 and self-sufficient in energy by 2035 feels
overlooked. Yes, it requires trillions of investments infrastructure and
favorable regulatory policies, but it has a promising bull case of addition 100
additional years of energy with reduced energy bills and emissions, manufacturing
renaissance, enhanced national security, new jobs, economic growth, and
elimination of economic deficit. [Note: Long the monopoly when it’s
established!]…Source: http://dynamichedge.com/2012/11/16/undiscountable-trends-energy-prosperity/
Crowdfunding, much
work to be done after JOBS: two structural problems persist—adverse selection
(perhaps only bad firms need crowd-funding) and information asymmetry
(confidential information conflicted in disclosure and hard to research). But
the involvement of successful and credible lead investors through credibility
boost and performance fee can solve this problem. [Note: perhaps to jump-start
the platform, but I view these concerns as non-issues]…Source: http://davemoon.me/post/35717807235/crowdfunding-adverse-selection-the-information-problem
The KKR report on Shale Gas opportunity. A must read: http://www.kkr.com/_files/pdf/KKR_report-20121113-Historic_Opportunities_from_the_Shale_Gas_Revolution.pdf
The bureaucratic
bloat of college costs: US universities employed > 230,000
administrators in 2009, up 60% from 1993 and 10x the growth of tenured faculty,
and such spending growth in admin could be sole cause of overall
ever-increasing cost of education. For instance, a administrator is paid
212,000 a year to “make sure these seven or eight committees are aware of
what’s going on in the other committees” in Purdue University. [Note:
disgusting, a better model will eat this dinosaur alive]…Source: http://www.bloomberg.com/news/2012-11-14/bureaucrats-paid-250-000-feed-outcry-over-college-costs.html
Taleb: Learning to
love volatility: To deal with black swans, we instead need things that gain
from volatility, variability, stress and disorder.5 policy rules to do this:
(1) Think or the economy as being more like a cat than a washing machine—the government
should be there only for emergency events and bail our individuals, (2) favor
businesses that benefit from their own mistakes, (3) decentralize the
government, (4) embrace learn through trial and error over academic knowledge,
and (5) make regulators have skin in the game. Stability leads to fragility,
and we must learn to gain from disorder. [Note: Yes, but it is only human
nature to seek stability]…Source: http://online.wsj.com/article/SB10001424127887324735104578120953311383448.html
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