The Higher Education Monopoly is Crumbling As We Speak
March 13, 2012
In the last years of the nineteenth century, Charles Dow created an index of 12 leading industrial companies. Almost none of them exist today. While General Electric remains an industrial giant, the U.S. Leather Company, American Cotton Oil, and others have long since disappeared into bankruptcy or consolidation. Today, the Dow Jones includes giant corporations that hadn’t even been created when Ronald Reagan first sat in the Oval Office.
Are Yesterday's Election Results Boosting the Market?
November 04, 2009
Apparently there’s a rumor making the rounds in some corners of Wall Street that yesterday’s election results are driving today’s stock market rally—the theory being that the results are a blow to Obama’s agenda, and stopping Obama is good for the market. (I just got a call from a producer at CNBC asking me what I thought about this). The reasons why this theory is utterly ludicrous are almost too numerous to catalogue, but let me give it a quick shot: First, as I write this (around 1:30 pm), the Dow is up about 100 points, or just over 1 percent.
Gourmet and the Bottom of the Magazine Market
October 11, 2009
Dan Gross is onto something with his most recent Slate column: [T]he closing of Gourmet (along with Cookie, Elegant Bride, and Modern Bride) could also be a positive sign ... [I]t reeks of capitulation. In investing terms, capitulation is that moment when, after a prolonged period of decline, nobody seems to want to be in a particular market—Internet stocks, real estate, CDOs. During down cycles, most players cut their losses or adjust to the new reality.
August 12, 2009
Should Tim Geithner's Wall Street consigliere make us queasy?
With Gm Out, Who Gets A Spot In The Dow... And How?
June 01, 2009
Today, General Motors (GM) filed for bankruptcy. As a result, starting on June 8, it will no longer be included in the Dow Jones Industrial Average (DJIA), the market index calculated from the stock prices of 30 of the largest, most widely held companies in the United States. GM's removal will mark the end of an impressive 83-year stretch in the DJIA. And it won't be exiting alone: Citigroup will also be kicked out of the index the same day. Replacing the two once-behemoths will be The Travelers Companies, Inc. and Cisco Systems, Inc.
Wasting Away in Hooverville
March 18, 2009
The Forgotten Man: A New History of the Great Depression By Amity Shlaes (HarperCollins, 464 pp., $26.95) Herbert Hoover By William E. Leuchtenburg (Times Books, 208 pp., $22) Nothing to Fear: FDR's Inner Circle and the Hundred Days that Created Modern America By Adam Cohen (Penguin Press, 372 pp., $29.95) A generation ago, the total dismissal of the New Deal remained a marginal sentiment in American politics. Ronald Reagan boasted of having voted for Franklin Roosevelt. Neoconservatives long maintained that American liberalism had gone wrong only in the 1960s.
Hype And Fear In The News
September 30, 2008
David Cay Johnston, who won a Pulitzer Prize for his innovative coverage of our tax system, retired this year as a investigative reporter for The New York Times.
No Pain, No Gain
July 22, 2002
Last fall, Williams Communications Group (WCG) looked like as good a bankruptcy candidate as any. The firm was supposed to make money by selling access to its 33,000-mile fiber-optic network to phone companies and Internet service providers. But a glut of fiber-optic cable had driven prices for that service down dramatically, while communications traffic was barely increasing. That left WCG's revenues at only a fraction of what had been expected when all its cable had been laid.
The End of the Reagan Boom
July 01, 1985
What’s going on here? Only a year ago, the economy was racing along at the fastest clip in more than 30 years. Personal income was up, inflation was down, and to many Americans, if seemed positively churlish to deny that President Reagan had succeeded in "laying the foundations for a decade of supply-side growth." Administration supporters claimed that as long as Federal Reserve chairman Paul Volcker was kept from sabotaging "the Reagan recovery" through an overtight money policy, the future looked bright. Long-term interest rates would gradually settle down to a more reasonable level.