71 MPG Polo TDI

Paul Volcker, almost as smart as Alan Greenspan

In what amounts to the smartest policy suggestion in recent history, Paul Volckler suggests that money market funds are "free riders" that "weaken the financial system." Money market funds are an incredibly important source of short term loans to business, and have a failure rate far below that of the banks. Yet, Volckler would prefer banks to be the only providers of short term liquidity.

Volcker speaks:

“In my vision of the new financial system, you obviously want to protect banks and have strong banks, and I don’t think they should be put at a competitive disadvantage vis-a-vis money-market funds”

So a free market concept providing higher yields to customers with a lower failure rate (around 1 fund ever 10 years) should be dispensed with in order to protect banks? Banks that require government insurance just to exist.

Thanks Paul. I will write that one down.

via bloomberg

Unemployed?

According to The Money Game, The Unemployed Never Had It So Bad. They are basing this conclusion on the above clever chart. Strangely, I come to the opposite conclusion. It seems to me the unemployed never had it so good. They clearly have the resources (and incentives) to stay unemployed longer as evidenced by the upward trend. Say what you would like, there is always a job out there. It may not be a job you are particularly interested in, but a job exists if you have to get one. The chart shows that people are able to hold out longer to find a job they prefer to the jobs immediately available.

Carl's Jr. launches Big Mac rival

Why can't I get this? via LA Times

I guess I will have to drive to Delaware and find a Hardee's.

I come from a land down under

I dismissed these people as idiots, years ago.