Hennessy's View

Domine, non sum dignus

Insane: Stocks Markets Rally On Economic Disasters

Eurozone’s economy is basically in recession. Walmart lowered expectations. Again. The world is teetering on the edge of World War. The US is launching Iraq War 3.0: Mission Accomplished Accomplished. Germany’s economy is flat, and Italy and France are getting worse. Risk is high. Corporate debt is staggering. The Fed’s balance sheet is a sea of monetized debt. The central banks have nothing left to fix another crash. And the stock markets are rocketing to record highs because of all this news. Read more →

Government Planning Is Killing the Economy

Friedrich Hayek warned more than half a century ago that central planning doesn’t work. Here’s why: * Central Planners (government) makes a plan * The plan includes specific expectations * The expectations are never, ever, realized * A “crisis” ensues * So the planners demand more control * And create more plans * Ad hoc * Willy nilly * Capriciously * So you must wait for things to settle down to make your decision Today’s Wall Street Journal article about the fiscal cliff demonstrates the futility of central planning: Read more →

3 Signs of Economic Disaster

Each day, more economists jump onto the Double-Dip bandwagon. Signs abound that the natural economic recovery that would normally follow a deep recession won’t happen. Instead, the economy is now saddled with so much debt, so many regulations, and such onerous new taxes that the Obama Administration tells us to be happy with 9.5 percent unemployment. Barack Obama is an economic disaster of the first order. So why all the pessimism? Read more →