Responsible Regulation/Regulatory Responsibility

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A recent headline in the Sunday Free Press, “Does MDEQ (Michigan Department of Environmental Quality) Put Economic Growth Ahead of People?” suggests that the writer may not fully understand the importance of economic growth and the extent that individuals benefit from a strong economy. Responsible and informed regulation should be able to protect the public … Continued

Cyber Security

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On February 25, 2016, an article appeared in USA Today where journalist, Steven Petrow, tells the story of his computer getting hacked while on a flight to North Carolina.  He was using the Gogo internet service to work on an article about the potential impact of the Apple FBI case on ordinary Americans.  A passenger … Continued

The UAW’s Mexico Dilemma

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Ford Motor Company recently announced that it will build a new assembly plant in Mexico designed to increase output by approximately 500,000 vehicles, more than doubling the company’s capacity there. Detroit auto makers have long assembled cars and trucks in Mexico.  Now, faced with increasing pressure to market smaller, more fuel efficient vehicles that are … Continued

A Prophet of Profit?

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In the morning banter amongst hosts on the television business channel CNBC recently, a comment was made about the veracity and accuracy with which some high profile investors prognostications are assigned when speaking through the media.  Most investors are aware of the overwhelming success of these legendary investors such as Warren Buffet or Peter Lynch … Continued

Buyer Beware – AGAIN!

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The January 3, 2016 New York Times carried an article titled, “A Smarter Plan to Make Retirement Savings Last.”  Pardon my skepticism, but I was taken aback by this statement from the article:  “Instead, low-fee diversified retirement portfolios would be created by a board of professionals who would be fiduciaries appointed by the president and … Continued

Volatility – Once and Again!

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Within the past week, common stock prices have gyrated widely (again).  The bias has been to the downside.  The cause du jour is high yield bonds and concerns over the solvency of some of the issuers of this low rated debt, and liquidity for buyers and sellers of their debt securities.  In particular, energy companies … Continued

The UAW’s Dilemma

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The UAW and the Detroit based auto manufacturers are currently in the process of negotiating a new four year agreement. UAW members generally resent the two tier wage system and long-time employees feel that they have been left behind as the industry recovers from the bailout/bankruptcy era.  It should be noted that UAW auto workers … Continued

Fed Watching – A Follow-up

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The comments below are a follow-up to our blog of September 1, 2015. At the recent September meeting the Fed chose to not raise interest rates and provided guidance that might suggest that a rate increase may be a little further down the road than previously thought. In remarks following the Fed meeting, Chairman Yellen … Continued

There Is No Substitute for Thinking!

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From the August 26, 2015 Wall Street Journal article titled “Trading Tumult Exposes Flaws In Modern Markets.” “Lans­ing, Mich. based fi­nan­cial adviser Theodore Feight had set up an au­to­matic sale for iShares Core U.S. Value ETF MMIUSVMM if it were to fall a cer­tain amount. The ETF tumbled 34% in early trad­ing, and in­stead of … Continued

Arctic Sea Ice and “Settled Science”

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According to a recent article in The Wall Street Journal, researchers at University College London have, using new satellite data, concluded that the total volume of sea ice in the Northern Hemisphere was well above the average in the autumn of 2013, after an unusually cool summer. This is an interesting and potentially important finding. … Continued

The Law of Unintended Consequences

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The Chinese stock market has drawn world attention from the recent sudden, sharp, and violent drop in share prices.  Yesterday, the China Securities Regulatory Commission announced prohibitions from certain investors selling shares of stock.  The objective, of course, is to stem the selling pressure which is causing stock prices to plummet.  The desired effect is … Continued

Settled Science? Things Change

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Legal scholar, Walter Osborn, was recently quoted in The Wall Street Journal regarding the FDA’s ban on trans fats.  He points out that from the 1950s on, dietary reformers promoted trans fats as a safer alternative to animal fats and butter.  Public health activists and various levels of government hectored consumers and restaurants to embrace the … Continued