Posted by Michael Swickard on Monday, September 6, 2010
Let me get this straight. We're going to be "gifted" with a health care plan we are forced to purchase and fined if we don't, written by a committee whose chairman says he doesn't understand it, passed by a Congress that hasn't read it but exempts themselves from it, to be signed by a president who also smokes, with funding administered by a treasury chief who didn't pay his taxes, to be overseen by a surgeon general who is obese, and financed by a country that's broke. What the heck could possibly go wrong?
From Rasmussen Reports by Michael Barone - Imagine that you have a product whose price tag for decades rises faster than inflation. But people keep buying it because they're told that it will make them wealthier in the long run. Then, suddenly, they find it doesn't. Prices fall sharply, bankruptcies ensue, great institutions disappear. Sound like the housing market? Yes, but it also sounds like what Glenn Reynolds, creator of instapundit.com, writing in The Washington Examiner, has called "the higher education bubble." Government-subsidized loans have injected money into higher education, as they did into housing, causing prices to balloon. But at some point people figure out they're not getting their money's worth, and the bubble bursts.Some think this would be a good thing. My American Enterprise Institute colleague Charles Murray has called for the abolition of college for almost all students. Save it for genuine scholars, he says, and let others qualify for jobs by standardized national tests, as accountants already do. Read more
Posted by Jim Spence
Earnings season is a four times per year opportunity to gather additional information about the companies that we follow, not an opportunity for the ever fickle “Mr. Market” to change our minds about the fundamental resilience of a particular business model. Wall Street analysts set expectations on revenue and earnings for each quarter and a great deal of the market’s movement following the earnings release will be based on the company’s actual results versus those expectations. Rarely, do analysts get those metrics exactly right.
Posted by Jim Spence
Book Review - Overhaul: An Insider's Account of the Obama Administration's Emergency Rescue of the Auto Industry
|Rahm "F" Bomb|