Monday, November 3, 2008

2.79 Quintillion.

That's Zimbabwe's inflation rate. Yowza! That's 2,790,000,000,000,000,000%. I didn't even know what came after quadrillion! That's just a ludicrous number. I half expect the Cato Institute to update the page with, "Just kidding!" Oh, and the link goes to a new blog in the econoblogsphere, Crisis Talk. When they linked their source on the 29th, it was 10 quadrillion percent.

The WSJ shows that states in which housing prices have fallen are voting for Obama, and states in which housing prices have risen are voting for McCain. I wonder if the economy as a major issue drove states to vote for Obama, or if states predisposed to voting for McCain have more responsible lenders.

Robert Shiller at the NYT talks about Greenspan's self-admitted mistake. Though Greenspan says that their models did not predict the housing bubble, Shiller points out that people hinted at it, but the warnings were ignored. Contrary views are unpopular, and when you're a policy maker, you are less likely to want to risk your job with contrary views.

Mark Perry at Carpe Diem quotes an energy economist who claims that oil will go down to $20-25. It's around $66 now, and it was $140 not too long ago. I find it difficult to believe it will go down to $20.

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