$4,284,500,000,000

November 18th, 2008

That’s what the so-called “financial crisis” of 2008 has cost the federal government directly… so far.* Wonder how that stacks up to other crises? CNBC has a slideshow showing the costs (inflation-adjusted) of some of the biggest government projects ever.

There are many events not listed in that slide show, of course. Two of the most notable: the Civil War ($60.4 billion in 2008 dollars, for both sides) and World War I ($253 billion in 2008 dollars).

For comparison, $4.28 trillion is approximately 31% of 2007 US GDP. It’s also 167% of 2007 federal tax revenues. How’s that for deficit spending?

You may bring your eyebrows back to earth now.

* Some of this money is in the form of loans. Many of these loans are to companies hemorrhaging cash faster than they can borrow it and are explicitly designed as relief against bad assets, however, and the crisis is hardly over. So, counting this money as lost is only wise.

Brilliant a Cappella Geekery

November 17th, 2008

For all the Lucas/Spielberg/Williams fans out there (and probably most of the critics, as well), I present the best use of YouTube I have seen in a while.

(h/t American Elephants)

New Cell Phone Number

November 16th, 2008

I am ditching my old, Chicago-area code (773) cell phone and switching to a Houston number. Please direct all calls and texts to 713-876-6095. Thanks!

The Only Graph You Really Need to Understand the Auto Industry’s Problems

November 16th, 2008

It’s the best one-image summary of why the Detroit Three are in such hot water, and it’s on Michigan economist Mark Perry’s blog.

(h/t Greg Mankiw).

Quote of the Day

November 15th, 2008

“Indeed you can usually tell when the concepts of democracy and citizenship are weakening. There is an increase in the role of charity and in the worship of volunteerism. These represent the élite citizen’s imitation of noblesse oblige; that is, of pretending to be aristocrats or oligarchs, as opposed to being citizens.”
- John Ralston Saul

Are Stocks Really A Bargain?

November 12th, 2008

Elliott Wave International asks, “Are stocks really a bargain?” If you believe your eyes, the answer is pretty clear.

P.S. In case you were wondering what the current DJIA dividend yield is (click the link above to see why this is relevant), you can see that here.

Nation of Burkeans?

November 11th, 2008

The National Review features a fantastic piece by Alexander Benard and Anthony Dick on America’s True Genius. The thesis: change does not make a nation great, and it certainly is not what has made America great. Rather, it is the constitutionally-mandated stability of our system of laws - the difficulty of implementing radical change - that makes this nation so good at weathering storms and enduring for so long. My favorite bits:

In fact, the Founding Fathers designed our Constitution so as to make it very difficult to bring about significant changes. New legislation requires majorities in both houses of Congress followed by a presidential signature. Constitutional amendments are even more difficult — the easiest method is for an amendment to pass both houses of Congress by two-thirds majorities and then be ratified by three-fourths of all state legislatures. This suggests the Founding Fathers were suspicious of quick and easy change.

The actual genius of America, and what makes our country unique, is precisely the opposite of change. It is that our country was founded on certain timeless principles, laid out in the Declaration of Independence and put into practice by the Constitution. These principles include the conviction that all men are created equal, that they are endowed with certain inalienable rights, that among these rights are life, liberty, and the pursuit of happiness; and that governments are instituted among men to secure these rights, and to provide freedom of conscience, freedom of speech, and equal protection under the law.

and especially:

Our constitutional structure recognizes the value of stability, and that change can be (indeed, often is) more damaging than uplifting. It acknowledges that existing social structures and traditions are not merely vestiges of an ignorant past, but rather reflect the accumulated wisdom of our ancestors and the evolutionary fruits of centuries of social experimentation. It respects the organic nature of political communities, with their interdependent parts woven together in a web of complexity that confounds even the most well-laid plans of radical social engineers.

Ouch

November 11th, 2008

Let’s all hope this, at least, does not repeat. It’s a miracle the American Dream has survived this long.

We Passed!!!

November 6th, 2008

Sarah and I passed the bar exam!

Post-Mortem

November 5th, 2008

So, America has elected its next President, its next Vice President, 35 Senators, 435 members of the House of Representatives, and thousands of state and local officers. We did it, again, without violence or bloodshed, with a minimum of intimidation, with a minimum of fraud, and, in general, with great dignity. There can be no doubt that the People have spoken. There can be no doubt that skin color no longer determines who may or may not participate in in our common public life, or at what level. We elected a man for what he believes and what he says, not for what he looks like, and that is, indeed, a milestone. Congratulations to America for those accomplishments.

Now, it will be no surprise to anyone who reads my musings regularly (or has read the site description at the top of each page) that I wish the outcome had been a different one ideologically. I did not and do not care about the race or gender of any candidate for any office, but I care very much what he or she says and thinks. If the latter are our primary concerns, this election was a clear defeat for conservatives. As a conservative, I think that constitutes a loss for the nation. Of course, I don’t think the Republican Party ever had much chance of holding ground in this election. For that matter, classical conservatives (as opposed to neocons) had even less. We were hoping for a better result, not an excellent one. Alas, it was not to be.

CNN tells me the U.S. chooses “change.” It’s not clear to me, yet - or, indeed, probably to anyone - just what change America collectively thinks it will get, much less what it will actually get. That said, change is coming. Indeed, in troubled times of war, economic turmoil - the worst of which I sincerely doubt is over - political division, and a deep moral divide on countless issues, change is inevitable. There was never any question that the United States of America will be different in 2012 from what it is in 2008. The world changes fast enough on its own to guarantee that. The question is, given that we can collectively control some of that change, what do we do with that power, which we have now entrusted in President-Elect Barack Hussein Obama? We will start hearing and seeing the answer today, I suspect.

I have one final thought I want to share in this election wrap-up. One of the common responses to the election and re-election of President George W. Bush was to say, “Well, he’s not my President.” Indeed, already, some are responding that way to Obama; others are embracing him as “my” President (Senator McCain took the latter approach). Here is my thought on this topic: George Bush is not my President, nor will Senator Obama be. Nor was any of Bill Clinton, George H.W. Bush, Ronald Reagan, or Jimmy Carter. I don’t have a President, and never will.

We, the People of the United States of America, we have a President, and we have elected a new one. This Nation must stand or fall as one. The trend of claiming and disowning particular officeholders based on their political affiliations is, I think, an extremely dangerous one. Our nation is defined in large part by a simple phrase: e pluribus unum, “out of many, one.” We had better take hold of that concept, before we produce many from the one People and one Nation we have inherited. And we had better all own this new President and claim him not as “mine” or “theirs,” but as “ours.” We need to hold him - and all who claimed victory last night - accountable to the People for what our government does in the next four years.

Members of the military have a time-honored saying: “We salute the rank, not the man.” Likewise, we - all of us - can and should honor the President and the presidency of this nation, regardless of upon whom that burden rests.

We have a President. We have a Nation. We are a People. Let us celebrate that, and let us see if we can unite in respecting those institutions and working in and through them for another four years, so that we still have them at that time.