This is truly, truly amazing. A (supposedly) decidedly capitalist society like the United States decided to practically nationalize its automakers … while an (officially) Socialist society like Sweden has been unequivocal in stating that it’s not ready to own car companies yet.

Read all about it here.

Think about how crazy something like that sounds: a laisses faire country bailing out private businesses, and a centrally-planned country allowing free markets to work … up is down, black is white, and what they teach in college is nonsense.

Saab

Although most can point to how GM destroyed a Swedish marquee, it’s amazing to me how neither GM nor the Swedish government are willing to “save” the company!  Perhaps it’s the good sign of the things to come, and more governments will follow Sweden’s example … Although who am I kidding … there will be more bailouts, more “too big to fail” mentality, and more maternal “we need to take care of everyone” attitide …

What’s all this talk of laid off people going back to school, people?

Number one … How the hell can anyone afford education in this environment? The University of Texas (UT) MBA program is $8,800 (conservatively), which amounts to about $980 per month … can someone explain to me how you can get LAID OFF and then decide you’re going to magically come up with another grand a month to GO TO SCHOOL?

It’s all nonsense. I have not heard of a SINGLE individual at work who decided to all of a sudden join the ranks of MBA students just because they got laid off.

On a related note, in my home country of Ukraine, it seems like EVERYONE has at least TWO degrees … mostly a law degree and a business degree, which does make them more competitive.  However, they seem to have gotten those degrees back-to-back, while living with parents …

At any rate … As I was sitting at work, watching HR people walk my colleagues out one by one, I realized that although I cared on a personal level, I didn’t give a shit on all other levels.  They’ve cut star-studded, seasoned professionals, those who you would never think would be laid off … I am yet to hear about ANY of them going back to school.

Don’t believe the hype.  And while you’re at it, consider the kind of business education you’re gonna get, anyway … Most likely, it’s going to be a hard-to-digest Keynesian smoothie of macroeconomics and bullshit.  Go Mises!

Caught Barack Obama visit Jay Leno tonight. Overall impression: tonight Obama was likable and straightforward in his answers, albeit a bit “cutesy” with the way he carried himself.

A couple of things he said caught my attention:

1) Securitizing car loans and student loans — he actually mentioned separating those type of loans from the general population of loans and securitizing them (packaging and selling). Isn’t this what got us into this mess in the first place?

2) Obama was a little weak in his defense of Tim Geitner — everyone already understands the economy is in shambles, no need to reinforce how hard the Secretary of the Treasury’s got it now.

Overall … a decent interview … and light years ahead of anything Bush would have mumbled.

It’s been almost four years since I purchased my awesome Mercedes-Benz 300SD off eBay (yes … I bought a car on eBay).

As a quick recap …

A friend recommended old diesel Mercs because of their reliability and low cost to own.  I didn’t quite know anything about those cars, but he owned a few of his own, and I trusted his opinion.  So before I bid $4,700 on a clean 1984 300SD, I went down to Detroit, met the seller, and test drove the car.

I purchased it straight cash, and put around $2,000 in maintenance and repairs over last 4 years.  The maintenance cost was somewhat reduced by the website I used to maintain (300sd.com), but then it got hacked (a lot) and I shut it down.

Well … It’s four years later, she has a few more dull spots lacking clear-coat, but she’s the same brown bomber I fell in love with :) A few major checks coming up — timing chain, front end, but nothing too critical.

Overall, the car has been a blessing.  Practically nothing to maintain, solid, reliable, comfortable, classy … you give her a little love, she pays back sevenfold.

And more importantly, I am now 29 years old, and I’ve never had a car payment in my life!

You have been living under a rock if you haven’t heard: everyone is being bailed out.  “Bail out” is the quintessential word of the times, along with “Collaterized Debt Obligations” and “Frozen Credit Markets” (latter to a lesser degree)  (by the way, everyone says “collaterized”, although it’s not a word — the correct world is “collateralized”).

So what does it mean to you and I?  You know, the non-financial non-gangsters?  The people who will most likely NEVER see any portion of the untold billions doled out or promised to the losers of the financial world?

Not sure about y’all, but to me it means one thing: INFLATION.

Inflation if the most low-down, sneaky, and malevolent thief.  It’s the kind of thief who does not have the common decency of helping himself of only the obvious valuables in the house, but the one who goes for your insulin, antibiotics, car and house keys, passports, and then takes a dump on your doorstep and floods your basement.

It comes with helplessness and a feeling of being too small to be able to do anything … after all, EVERYONE is experiencing the same thing, and there is never a quick fix.  I’ve lived through periods of inflation in Eastern Europe, and it left a terrible aftertaste … the kind you get after flossing out a little piece of meat from between your molars a couple of days too late.

Why am I raising this now?

The United States does not have any savings to finance its incredibly aggressive domestic policies … therefore, she must either borrow the money, or print it.  Either way, the supply of money increases, and prices go up (nominally).

If someone continues to finance all this borrowing, then it’s a ‘good’ scenario for the time being — we’re back to consuming what the Chinese have saved, and everything is back on track.  If we simply print the money and stuff it in the coffers of those we’re bailing out, then eventually, those funds will hit the streets, causing the prices to rise.

Either way, the price of a Coca-Cola in the vending machine keeps going up even though it is probably the most lean and efficient consumer product ever produced … Why did it just jump by a quarter?  Is it now all of a sudden 20% more expensive to produce with all these downed commodity prices?

I believe inflation is happening as we speak, and it will only accelerate.  Check out this nice Q&A.