Great Depression

As I stopped by my local grocery store to shop I happened to notice that for a weekend, the number of people was extraordinarily low.  Recognizing the cashier I observed, “it really seems empty for a weekend.”  Her comment sums up the new feeling that many have.  “It feels like we are entering another like […]

“I’m shocked, shocked to find that gambling is going on in here!” -Captain Renault, Casablanca
Many of our elected officials were “shocked” and astounded to realize that the entire economy has turned into a glorified casino.  Ironically, the quote above comes from Casablanca which translated into English means Whitehouse.  How appropriate given the circumstances.  How the […]

California is now 7 weeks late on bringing forward a budget. Having a late budget of course isn’t something new to the sunny state. However, should we pass Friday of next week with no budget we would break a world record for our state in terms of tardiness of a budget. There […]

California is now 7 weeks late on bringing forward a budget. Having a late budget of course isn’t something new to the sunny state. However, should we pass Friday of next week with no budget we would break a world record for our state in terms of tardiness of a budget. There […]

“Americans, while occasionally willing to be serfs, have always been obstinate about being peasantry.”
- F. Scott Fitzgerald, The Great Gatsby
The Great Gatsby was published in 1925 and chronicles the Jazz Age and captures some of the excess of the roaring 20s.  F. Scott Fitzgerald wrote the novel during a time in which there was booming […]

During every bubble the excess capital that is created usually has to go to some form of conspicuous consumption.  With the technology bubble we had groceries delivered to your home by van, sock puppets, and a Beanie Baby mania. It seems when money is flowing, those with the capital want to spend on conspicuous […]

When the House of Morgan speaks, people listen. There are very few banks that carry an aurora of royalty like that of JPMorgan. Unlike our brethren in Europe or Asia, long historical banks or families simply do not exist in our nation’s short history. The life of American financier, bankers, and art […]

Bank failures are not common occurrences. And seeing a large group of people lined up at 7:30AM in a prime Southern California location with distraught faces ready to withdraw their money from the now taken over IndyMac Bank was even more surreal. The idea of a large brick and mortar institution not keeping […]

Federal Reserve Chairman Ben Bernanke this week once again mentioned that the Federal Reserve was “strongly committed” to financial stability and is considering options like keeping the lending facilities open to primary dealers. In short, they are going to continue to bailout banks and Wall Street firms while Americans get the shaft. This […]

With the systemic problems facing the United States and now being officially in bear market territory, this will be a challenging holiday weekend for many Americans. Already many are planning to curtail any major traveling and are opting to stay at home and possibly doing a barbeque at home because of high fuel costs. […]