Douglas in Vegas

Based in Las Vegas, Douglas french writes about the economy and book reviews.

Trump Channels Tricky Dick

Jul 20

Jul 20 Trump Channels Tricky Dick

There’s plenty of blather that Trump is breaking with presidential norms by criticizing Jerome Powell’s rate hikes, but, the Donald is merely channeling Richard Nixon. When Nixon appointed Arthur Burns to be Fed Chair in October of 1969, Burns was soaking up the applause during the announcement of his appointment when Nixon broke in, saying, “You see, Dr. Burns, that is a standing vote of appreciation in advance for lower interest rates and more money.” Later, in private, Nixon told his new Fed Chair, “You see to it: no recession”

Tax Evasion: Goooooaaaallll!

Jul 7

Jul 7 Tax Evasion: Goooooaaaallll!

Ronaldo and Messi take elaborate steps to keep money they’ve earned away from the government of Spain. Bagus and his colleagues point out the benefits of their actions. “Lacking a removal or reduction in tax levels, evasion will allow for an at least partial reinstatement of individuals’ rights of association, with resultant improvements in ethical considerations as well as economic efficiency.”

Merger Malinvestment

Jun 30

Jun 30 Merger Malinvestment

The primary problem is size itself. Ludwig von Mises explained that socialism doesn’t work because there was no market to determine prices and thus calculate how resources should be used. Behemoth companies are no more immune than government bureaucracies.

Tariffs: Stealing Entrepreneurs' Profits

Jun 28

Jun 28 Tariffs: Stealing Entrepreneurs' Profits

Consumers decide what they will pay and determine value. Tariffs, the use of political force, determines where the buyer’s proceeds end up. Favored industries receive more and the entrepreneurs receive less, lowering their profits and making them less likely to take future risks in a similar political climate. As a real estate developer, the President should know better.

Trumping to Serfdom

Jun 17

Jun 17 Trumping to Serfdom

Hayek wrote that psychopaths, er politicians, have to “weld together a closely coherent body of supporters”...appealing “to a common human weakness. It seems to be easier for people to agree on a negative programme – on the hatred of an enemy, on the envy of the better off – than on any positive task.”

Jun 15

Jun 15 Socialist Chic

Rothbard’s reservation was, "There are increasing tendencies for the Panthers to abandon black nationalism almost completely for the Old Left virus of black-white Marxist working-class action." He wisely noted "an unfortunate eagerness to reach out and make alliances with white radicals,

Jun 14

Jun 14 Debt Conceit

The markets believe Mr. Powell is cooking his porridge just right--not too hot, not too cold--and, most importantly, not blow up the stove, or the whole house.

Vegas's Greatest Week?

Jun 7

Jun 7 Vegas's Greatest Week?

Las Vegas Market

It used to be that the only stick men that mattered were at the city’s craps tables pushing dice and barking “new shooter coming out.” A hockey puck was what Don Rickles called the dim witted. Now the town is cuckoo for hockey as the Golden Knights skate against Washington D.C.’s Capitals for the Stanley Cup.

The Hits Keep Coming for Deutsche Bank

Jun 1

Jun 1 The Hits Keep Coming for Deutsche Bank

At the end of last year, Deutsche’s U.S. operations had $7.3 billion of equity supporting $148 billion of assets, or 20 to 1 leverage. Then there is the derivatives exposure of $50 trillion (with a T).

Las Vegas: Prices Increase for Housing and Parking

May 30

May 30 Las Vegas: Prices Increase for Housing and Parking

Las Vegas Market

Despite a shortage of labor, builders have pulled over 4,000 permits for new home construction through this year’s first four months a 33 percent increase from a year ago. Andrew and Dennis Smith ominously write, “This also marks the first time since 2007 that we have reported more than 1,000 permits pulled in two consecutive months.”

The Kingdom of Tom Wolfe

May 28

May 28 The Kingdom of Tom Wolfe

After Wolfe’s passing, I read his last, “The Kingdom of Speech,” a book that was reportedly “not well received by critics.” Many of his books weren’t “well received” yet sold well enough for him to live in a 12-room apartment in New York.

Problem Canary in Bank Coal Mine?

May 24

May 24 Problem Canary in Bank Coal Mine?

The number of problem banks was only 92 at quarter end, the assets of problem banks more than tripled to more than $60 billion. That means two or three banks of considerable size are now considered “problem” banks. The regulator doesn’t say which banks, so lines don’t form outside.

Trouble in Euroland

May 23

May 23 Trouble in Euroland

Little old Italy, you might ask. While small in land mass, the Italian government has borrowed mightily: the fourth largest bond market in the world, behind, China, Japan and you know who.

Eisman of 'Big Short' Fame Doesn't Believe Cryptocurrencies Have Value

May 14

May 14 Eisman of 'Big Short' Fame Doesn't Believe Cryptocurrencies Have Value

Eisman joins Warren Buffet in dissing cryptos in recent days. The Oracle of Omaha had harsher words for digital currencies, calling them, “probably rat poison squared’ and predicted cryptocurrencies “almost certainly...will come to a bad ending.”

Malamud Retires, Remembering Rothbard

May 13

May 13 Malamud Retires, Remembering Rothbard

Las Vegas Market

Imagine how different the History of Thought class was with Rothbard (his 2 volume “An Austrian Perspective on the History of Economic Thought” was essentially his lectures) as opposed to Malamud’s version.

Think and Decide Like a Poker Player

May 12

May 12 Think and Decide Like a Poker Player

Mr. Books the gunfighter was thinking the way poker players think: in bets. Former poker pro Annie Duke’s new book Thinking in Bets: Making Smarter Decisions When You Don't Have All the Facts, makes us think of our decision making not in a 50/50 way, or a zero percent--100 percent way, but account for those unknowns or as Books said, have “that third eye.”

Demand for Gold Coins Crashes

May 9

May 9 Demand for Gold Coins Crashes

When the public was worried the end of the modern financial world was near, they were stocking up on gold, and presumably canned goods. However, the last few years has proven the coast is clear: paper and computer generated “assets” will do just fine.

Millennial Candidates embrace Socialism, while Venezuela Chokes on it

May 1

May 1 Millennial Candidates embrace Socialism, while Venezuela Chokes on it

Socialism has oozed out of college classrooms and into the ballot box. “Yes, I’m running as a socialist,” Mr. Bynum told the New York Times. “I’m a far-left candidate. What I’m trying to do is be a Democrat who actually stands for something, and tells people, ‘Here’s how we are going to materially improve conditions in your life.’”

Stagflation to take down Keynesians Again

Apr 25

Apr 25 Stagflation to take down Keynesians Again

Other than a scattered Austrian here and there, Bernanke and his successor Janet Yellen went about their business unquestioned. Quantitative Easing (QE) was the Keynesian magic wand that kept the ATMs operating on time.

Blockchain-- "crypto-medieval hellhole”

Apr 21

Apr 21 Blockchain-- "crypto-medieval hellhole”

Is blockchain a “futuristic integrity wand”? While it’s hard to tamper with data on the blockchain, the idea that blockchain is a good way to create data that has integrity is false.