– Government regulation of certain aspects of private financial transactions are fascinating.
– Yglesiocracy: "Smart People have no use for the concept of the Rule of Law. Smart People favor the rule of Smart People."
– More massive mail bailouts for entities that "didn’t case the crisis." (Do I need a trademark sign after the quote?)
– Words to live by: "the sane alternative is to be a reactionary with a sense of humor."
– I’ve written before that huge portions of the blogosphere and economic research are dedicated to explaining that which Charles Murray and Richard Herrnstein already explained. This debate between Tyler Cowen and Erik Brynjolffson is a good example. Cowen argues that we have economic and technological stagnation while Brynjolffson argues that we’re experiencing massive gains in both areas. Of course, they’re both right. If you look at median levels, as Cowen does, you see stagnation. If you look at mean levels, as Brynjolffson does, you see advancement. Murray and Herrnstein predicted that we’d see massive gains among the intelligent and stagnation (or regression) among the increasingly larger non-intelligent. In other words, yawn, Murray and Herrnstein were right. The Bell Curve was written in 1994. How long will it be before mainstream economists figure out what it says?
– Peggy Noonan:
Later, with an almost beautiful defiance, Mr. Cain told the Milwaukee Journal Sentinel: "I’m not supposed to know anything about foreign policy." That’s what staffers are for. "I want to talk to commanders on the ground. Because you run for president [people say] you need to have the answer. No you don’t! No you don’t!"
Yes you do. It was as if history itself were unknown to him, as if Harry Truman told Douglas MacArthur, "Do what you want, cross the Yalu, but remember to tell me if we invade China."
Cain is right, of course.