Author: Curt Doolittle

  • CLANS AND WESTERN UNIVERSALISM HBD_Chick finds yet another exceptional paper on

    http://hbdchick.wordpress.com/2012/08/31/the-return-of-the-return-of-chinese-clans/CHINESE CLANS AND WESTERN UNIVERSALISM

    HBD_Chick finds yet another exceptional paper on the impact of different cultural institutions:

    “The Return Of The Return of Chinese Clans”

    “In a clan, moral obligations are stronger but are limited in scope, as they apply only toward kin. In a city, moral obligations are generalized towards all citizens irrespective of lineage, but they are weaker, as identication is more difficult in a larger and more heterogeneous group. We refer to this distinction as limited vs generalized morality.“

    “Institutional mechanisms also differ between the clan and the city: clan enforcement mainly relies on informal institutions, whereas the city relies more on formal enforcement procedures. In terms of economic effciency, these two arrangements have clear trade-offs. The clan economizes on enforcement costs, whereas the city exploits economies of scale because it sustains cooperation in a larger and more heterogeneous community.”


    Source date (UTC): 2012-09-01 01:24:00 UTC

  • PAPER ON HOUSING’S RELATIONSHIP TO THE ECONOMY “What made housing vulnerable to

    http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2139670&http%3A%2F%2Fpapers.ssrn.com%2Fsol3%2Fpapers.cfm%3Fabstract_id=2114620EXCEPTIONAL PAPER ON HOUSING’S RELATIONSHIP TO THE ECONOMY

    “What made housing vulnerable to a bubble? And why has the housing market been so impervious to attempts at resuscitation?

    This Article critically reviews the theories of the housing bubble. It argues that housing is unusually susceptible to booms and busts because credit conditions affect demand and because the market is incomplete and difficult to short. Housing market distress transmits to the macroeconomy through a balance sheet channel, a construction channel, and a collateral channel.

    Housing is unique as an asset class in that it is both a consumption and investment good. It is also the largest single consumer asset and debt class. Because housing is credit-backed and such a large asset class, failure will impact the financial system itself and pull down the economy as a whole. The dual-use of housing, its ubiquity on consumer balance sheets, its highly correlated pricing, and its linkage to the macroeconomy make it a particularly painful type of asset bubble to deflate.

    The credit-backed nature of housing is also the key to understanding why there was a bubble. We argue that the bubble must be understood as stemming from the change in the mortgage financing channel from Agency securitization to private-label securitization (PLS). This shift enabled financial intermediaries — economic, but not legal agents of borrowers and investors — to exploit the information problems inherent in PLS for their own short-term gain. In other words, a set of agency problems in financial intermediation was the critical factor in fomenting the housing bubble.”

    http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2139670&http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2139670&http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2114620

    Thanks to Adam Levitin at http://www.creditslips.org/


    Source date (UTC): 2012-08-31 21:32:00 UTC

  • RAPID DECLINE IN SULPHITE INTOLERANCE I guess it worked. Catsup is back on the m

    RAPID DECLINE IN SULPHITE INTOLERANCE

    I guess it worked. Catsup is back on the menu. So is hot sauce. So is bacon. So is some red wine. It’s not that I don’t feel anything. It’s that I don’t seem to be getting the allergic reaction. Not at all. Unfortunately MSG still does it’s horrible hatchet job on dopamine channels. Ran into that by accident the other day, and again today – despite labeling to the contrary, I’m a bit dizzy from it. But while I can avoid MSG carefully, damned sulphites are in everything.

    So thank you Dr’s Botoni and Nguyen for removing my toxic organ. 🙂


    Source date (UTC): 2012-08-29 20:10:00 UTC

  • WHAT PERCENT OF YOUR PORTFOLIO IS IN GOLD? So, I have this little hobby forecast

    WHAT PERCENT OF YOUR PORTFOLIO IS IN GOLD?

    So, I have this little hobby forecasting currency changes. And, really, I do pretty well with it. That’s because governments are predictable and slow moving. And economic instability has created plenty of opportunity since 2008.

    Now, I’m not a gold bug. Like most analysts, I just view it as another form of manipulatable currency. And I’m not a trader. I invest in my businesses. And my cash reserves are defensive. So, gold is just a currency to move to when others are going to fall. The ticker symbol GLD is a fairly safe way to buy.

    And since gold is fairly volatile, you can buy it gradually over time in the valleys.

    I’m going to increase my GLD holdings by 5%, even though my intuition says to increase them by 10%.

    This election is going to have an enormous impact on world affairs. And like I wrote in 2006, the only way they’re going to fix the problem is to all but destroy the currency both here and in Europe. I just don’t see a way around it at this point without pervasive civil unrest.


    Source date (UTC): 2012-08-28 16:20:00 UTC

  • I LOVE DOING DEALS Really. I live for it. The higher risk, the more zeros, the m

    I LOVE DOING DEALS

    Really. I live for it. The higher risk, the more zeros, the more variables, the better. I’m sure it means something. I’m also sure it means something bad. 🙂


    Source date (UTC): 2012-08-27 20:00:00 UTC

  • OPAQUE PHILOSOPHY – IN HUMBLING COMPANY I’ve been extremely self critical about

    OPAQUE PHILOSOPHY – IN HUMBLING COMPANY

    I’ve been extremely self critical about the opacity of my writing, and struggling to make it digestible. It’s brutally difficult to follow Spinoza’s advice: “Speak in a manner comprehensible to the common people.” And, while I’ll never be able to address common people, I think I’ve finally reduced propertarianism to something that’s at least reasonably accessible, and analytically clear, regardless of one’s political preferences and moral codes. Perhaps I can get it down to twenty pages if I can figure out how to elegantly and succinctly tie the biology of moral codes, to the necessity of property, to the institutions necessary for property. Maybe thirty pages. My first draft was almost three hundred. So obviously i’m making progress.

    I still have years worth of work ahead of me. I’ve used Rothbard’s ideas to reframe classical liberalism and conservatism, and then social democracy, into Propertarian language. But the excruciating work of defending these ideas against the legion of very smart people both past and present is so daunting I become easily overwhelmed every time I pull my head out of one little problem or the other.

    And I don’t really find those defensive problems interesting. This is where my lack of academic training fails me. It is one thing to solve a conceptual problem. It is quite another to create an edifice with which to defend it against crushingly great minds. It is either the mark of an incredible fool, unconscionable hubris, or accidental ignorance, to take on this category of problem, and to even mention one’s feeble efforts in the same sentence with minds like this.

    Spinoza spent his entire life on two hundred pages. How did Murray work on one book for seven years full time? Rawls? And Rawls clearly needed to do a lot more work than he did. You have to be amazed by someone like Rothbard, who I’m honestly in awe of. If you look at his writing, while he oversimplifies the problem of political theory almost absurdly, he’s at least accessible and his breadth just daunting, even if you disagree with his premise.

    On the other hand, after re-reading those who don’t oversimplify the problem, namely Rawls and Nozick, I feel like the bar isn’t all that high. I mean, those works are highly influential despite being painfully inaccessible. Which is a small comfort. A very small comfort. But a comfort none the less.

    One cannot distill complex ideas to first principles expressed in analytical language unless one understands the problem thoroughly. The genius of Rothbard’s insight is a barrier to adoption because of his passion for his particular ethics of anarchism. But his Propertarianism is applicable to all political philosophy and ideology. In fact, it’s the only thing that makes them commensurable.

    Shoulders of giants and all that. Humbling. Witheringly humbling.


    Source date (UTC): 2012-08-26 23:35:00 UTC

  • “2016 OBAMA’S AMERICA” – MOVIE GOES INTO WIDE RELEASE. The movie critical of Oba

    “2016 OBAMA’S AMERICA” – MOVIE GOES INTO WIDE RELEASE.

    The movie critical of Obama is number three in the weekend charts. It’s gone from limited to wide release. GO SEE IT. THIS WEEKEND.

    “Immersed in exotic locales across four continents, best selling author Dinesh D’Souza races against time to find answers to Obama’s past and reveal where America will be in 2016. During this journey he discovers how Hope and Change became radically misunderstood, and identifies new flashpoints for hot wars in mankind’s greatest struggle. The journey moves quickly over the arc of the old colonial empires, into America’s empire of liberty, and we see the unfolding realignment of nations and the shape of the global future.”


    Source date (UTC): 2012-08-25 13:04:00 UTC

  • BP 100/68, pulse 60 Seem to be shrinking a bit.(don’t have extra to part with) L

    BP 100/68, pulse 60

    Seem to be shrinking a bit.(don’t have extra to part with)

    Liver levels normalizing.

    Color good. Sutures healing well. Still fighting respiratory infection.

    Not sure why blood pressure so low even on a cup of coffee but it is causing me problems. Dizzy a lot. Give it a few more days but may have to cut the bp med again until my stress level increases again.

    Amanda found an interesting set of studies that imply childhood measles may persist at low levels producing sulfite intolerance. Going to have to look at that some more.


    Source date (UTC): 2012-08-23 16:21:00 UTC

  • THE IRON LAW OF BUREAUCRACY “In any bureaucracy, the people devoted to the benef

    THE IRON LAW OF BUREAUCRACY

    “In any bureaucracy, the people devoted to the benefit of the bureaucracy itself always get in control and those dedicated to the goals the bureaucracy is supposed to accomplish have less and less influence, and sometimes are eliminated entirely.” – Pournelle


    Source date (UTC): 2012-08-23 10:48:00 UTC

  • THE IRON LAW OF OLIGARCHY “All forms of organization, regardless of how democrat

    THE IRON LAW OF OLIGARCHY

    “All forms of organization, regardless of how democratic they may be at the start, will eventually and inevitably develop oligarchic tendencies out of the necessity for leadership and decision making, thus democracy is practically and theoretically impossible: He who says organization, says oligarchy.” – Robert Michels


    Source date (UTC): 2012-08-23 10:46:00 UTC