Mike Norman Economics

The recent equity market shenanigans has confirmed one of my biases: modern academic finance has been very good at destroying capital. If one were of a conspiratorial bent, one might guess that finance faculties were being secretly backed by the enemies of capitalism. (I have been currently watching a documentary series on secret societies, and such misdirection is not unprecedented.) The simultaneous advocacy of efficient markets as well as the ability of hedge funds to continuously...

With an economic rescue plan that is both ambitious and well targeted, US President Joe Biden and his team have demonstrated a clear understanding of the scale and range of action that the current situation requires. A broader reconstruction plan can and must come later; but crisis management remains the order of the day.... Project SyndicateBiden’s Grand OpeningJames K. Galbraith | Lloyd M. Bentsen Jr. Chair in Government/Business Relations and Professor of Government at the Lyndon B....

With majorities in the House and Senate, Democratic leaders may well use a special legislative process called “reconciliation” to quickly advance high-priority fiscal legislation. Created by the Congressional Budget Act of 1974, reconciliation allows for expedited consideration of certain tax, spending, and debt limit legislation. In the Senate, reconciliation bills aren’t subject to filibuster and the scope of amendments is limited, giving this process real advantages for enacting...

Graph: Following WWII, the U.S. had the only industrial economy left standing. The relative prosperity that this produced isn’t replicable outside of those historical circumstances. Neoliberalism is the capitalist response to diminished relative prosperity as global economic competition re-emerged. It brought capitalist competition home through deregulation, deindustrialization, and financialized looting. This produced a series of intermediate crises before the crash of 2008. As detailed...

Susan Davies has spent much of the last decade working on behalf of major mergers and fending off antitrust enforcement.Conflict of interest?The American ProspectMerrick Garland Wants Former Facebook Lawyer to Top Antitrust Division Ryan Grim, David Dayen

As part of the paradigmic turmoil that is confronting mainstream economists, we are witnessing some very interesting strategies. Imagine you establish a set of principles that are seemingly inviolable. They are the bedrock of the belief system, even though it is not called that. These principles then offer all sorts of predictions about, yes, the real world. They are without nuance. The predictions are so worrying, that politicians, whether they are knowing or not, proceed with caution in...

From a sentiment perspective, the high on September 2 at around 303.50 looks interesting as that represents the high after the large summer rally off a bottom in bullish sentiment and before any of the nascent “blue wave!” bullish sentiment came in after Labor Day and through the election... still $13 above that summer rally high.... 5 months later...

If it was all about short covering then why would indexes go down?Disruptions were reported at several major retail brokerages following the speculative surge of interest in companies including GameStop and AMC Entertainment as well as a big drop in the major stock-market indexes including the S&P 500. $GME $AMChttps://t.co/WxpLvQjlMn pic.twitter.com/Bh0C6RYeZv— MarketWatch (@MarketWatch) January 27, 2021

An army of little traders are attacking the shady hedge funds and financial elites, attempting to claw back decades of ill gotten gains. And they're succeeding! Trade and invest using the concepts of MMT. Get a 30-day free trial to MMT Trader. https://www.pitbulleconomics.com/mmt-trader/?s2-ssl=yes/ Download my podcasts! New one every week. https://www.buzzsprout.com/1105286 Mike Norman Twitter https://twitter.com/mikenorman

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