Economics

How Mobile Devices Are Changing Africa

"Mobile phones are kicking off a revolution in Africa, with everyone from farmers to villagers relying on apps to make electronic payments, check on expiration dates for medicine, and predict future storms or the best prices for produce. More kids in Africa have access to the Internet than consistent electricity. Nobody owns a PC or can access a fixed-line telephone, so mobile phones are a conduit for everything from email to news to making payments via SMS. Many people on the continent also own phones equipped with flashlights and radios and the percentage of the population equipped with mobile devices is primed to explode over the next few years." Continue reading →

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NYC Taxi Medallions Sell for $1.1 Million

"More regulation madness. In New York City, Taxi prices are so out of line with what free market rates would be that corporations are now willing to pay over $1 million to own a taxi and collect the fares, which is what the ownership of a medallion allows. In a free market, even allowing for registration with the NYC Taxi and Limousine Commission, the cost would be the registration fee ($100?) and that would be it. Below is the NYC Taxi and Limousine Commission report for February, which shows 4 corporate taxi medallions were sold for $1,000,000 and 2 sold for $1,100,000." Continue reading →

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Detlev Schlichter: Global economic policy now firmly in the hands of money cranks

"During the early honeymoon between ‘Abenomics’ and financial reality, the idea of printing yourself to prosperity is likely to have imitators, with the UK being a prime candidate. In terms of total indebtedness, the UK is the one industrialized country that can compete with Japan, meaning it is in the same supersized debt-pickle. Over at Threadneedle Street, the Deputy Governor of the Bank of England, Paul Tucker, openly fantasized about negative interest rates recently, outgoing Governor Mervyn King voted for more QE (overruled), and Governor-elect Mark Carney promises to be, well, – flexible. Bottom line: desperation is spreading. Watch this place!" Continue reading →

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Subprime ABS Securitizations Are Back As Absolute Worst Of The Credit Bubble Returns

"The $604 million issue from consumer lender Springleaf Financial, the former American General Finance, will bundle together about $662 million of loans secured by assets such as cars, boats, furniture and jewelry into ABS, according to a term sheet. Some loans have no collateral. Personal loans haven't been a part of the mainstream ABS market since securitizations from Conseco Finance Corp. in the late 1990s, according to Michael Dean, co-head of Fitch Ratings' ABS group. That market dried up as the recession hit and, under the weight of bad subprime loans, Conseco filed for bankruptcy in 2002." Continue reading →

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As cities lay off police, frustrated neighborhoods turn to private cops

"After people in Oakland’s wealthy enclaves like Oakmore or Piedmont Pines head to work, security companies take over, cruising the quiet streets to ward off burglars looking to take advantage of unattended homes. Long known for patrolling shopping malls and gated communities, private security firms are beginning to spread into city streets. While private security has long been contracted by homeowners associations and commercial districts, the trend of groups of neighbors pooling money to contract private security for their streets is something new." Continue reading →

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Jim Bovard: Farmers fight for the right to grow raisins

"Marvin Horne, a 67-year-old raisin farmer in Fresno, Calif., was fined almost $700,000 for refusing to surrender control of much of his harvest to the federal committee in 2002. Horne, who has been growing raisins for more than 40 years, has battled the raisin committee for more than a decade and describes its regime as 'involuntary servitude.' His challenge -- which is supported by many California raisin growers -- landed in front of the Supreme Court last month. According to the Obama Administration and USDA, the Raisin Administrative Committee needs vast power to protect farmers from selling too many raisins." Continue reading →

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NYT: Bubble or No, Virtual Bitcoins Show Real Worth

"So why the sudden run-up in value? Some point to the recent crisis over Cypriot banks, which made a currency beyond the control of governments more tempting. And as with a run-up in anything tradable there is also the hypnotic logic that says the price went up today, so that means it will go up tomorrow. Some observers and investors also make the case that bitcoins are in fact undervalued: The total value of the world’s economic activity is enormous. There are certain transactions that are ideal for bitcoins because the currency is relatively anonymous and does not need to be processed by a financial organization or a government." Continue reading →

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Downturn Millionaires – How to Make a Fortune in Beaten-Down Markets

"The price of gold bullion has fallen from its 2011 highs and the prices of good junior companies have been slashed to as little as half their former valuations. All the more reason to start returning broker phone calls according to David Galland, Casey Research managing director, speaking on the Friday eve of the webinar he is moderating that features some of the biggest names in the industry. The webinar features Casey Research Founder Doug Casey, Sprott Global Resource Investments Founder Rick Rule, International Speculator Editor Louis James, 'Endgame' Author John Mauldin and Diary of a Rogue Economist Editor Bill Bonner." Continue reading →

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Detlev Schlichter: Good riddance to deposit ‘insurance’

"Although the mechanics of fractional-reserve banking have not changed in 300 years the public’s expectations have evidently changed greatly. Today banks are expected to lend ever more generously while depositors are supposed to not incur any risk of loss at all. State deposit 'insurance' is not insurance. Insurance companies calculate and calibrate risks, charge the insured party and set aside capital for when the insured event occurs. A state deposit ‘guarantee’ is simply another unfunded government promise, extended in the hope that things won’t get that bad. When they finally do the state does what it always does: it will take from Peter to pay Paul." Continue reading →

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As Canada Collapses, Do We Need to Ask Why?

"At some point this sort of astonished rhetoric must begin to grow stale, even, well ... unbelievable. We are supposed to slap our collective forehead and ask, 'How could this be happening?' But, in fact, we already know. You do, too. Central banking monopoly money stimulation has taken down Western economies from Europe to the United States and beyond. And after a full century of central banking mayhem it is impossible to believe that the leaders of this failed economic environment can have any doubt left about its destructive tendencies." Continue reading →

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