

Inflation is the surest way to trigger a Pavlovian response from politicians, whereby they blame monopolists, middlemen, greedy entrepreneurs, profiteers, and price gougers. In 1793, French Revolutionaries fueled inflation by running persistent deficits that they...
Playing the blame game on rent inflation

Banks are playing it safe, sort of
In today’s dispatch: banks are lending lessbanks are also generating less revenue, and NIM continues to slide (for now)are Zombie banks good?bank exposure to non-bank lending is probably higher than Zombie would like After the Fed nearly killed the banks by torpedoing...
Banks are playing it safe, sort of

The dollar and its domestic enemies
Upping the ante following the initial weaponization of the dollar in 2022, the United States and a number of allied nations have agreed in principle to begin distributing profits on seized Russian assets to Ukraine. Interest payments on securities in...
The dollar and its domestic enemies

The sucker at the table
$120,000 for a banana. This was December, 2019, at Art Basel in Miami. An Italian artist duct taped a banana to the wall. It sold for $120,000. The state of modern art, ladies and gentlemen. It’s easy to laugh at the decadence of the art world. It’s not as easy to...
The sucker at the table

More housing fixes (almost) everything
Bryan Caplan does not write to be popular. He writes not for causes he thinks are likely to win but for causes that deserve to win. I’ve reviewed almost all of his books: The Myth of the Rational Voter (2007), Selfish Reasons to Have More Kids (2011), The Case Against...
More housing fixes (almost) everything