I love Lileks…

Here is just one example of why I love James Lileks:

I’m not an economist, but I’ve noted something interesting. Since we decided that ethanol would be the cure to our ‘addiction to oil,’ we managed to bump up the cost of corn, encourage a shift to corn production, and raise the price of foodstuffs. Which fueled inflation fears. Now that we have increased inflation, we have a fear of a recession, which drives the price of oil down, since demand is expected to slump. The price of gas has gone down a quarter in the last ten days, and it’s idling in the low $2.8x range. As others have noted, the cure for $100 barrel oil is $100 barrel oil. It all works out. There’s a boom and then there’s a bust. Having lived through a few, it’s annoying to hear the same fargin’ end-of-the-world hairshirt orations, especially from those who have spent their entire lives walking around with a bucket of black paint and a brush looking for good news to deface.

While looking through some old papers I was reading about the recession fears of 1948. There were ads in the paper telling people not to turn the thermostat up in January because there wasn’t enough heating oil. There was also a steel crisis, which worried analysts. Imagine anyone worrying about a steel crisis today. In any case, The Republic struggled through and came out the other side. Now? We’re not even in a recession, but you’d think the morning sun was about to be blotted out by the rain of money managers hurling themselves out windows. Of course the news is bad. The news is always bad. Even the good news is bad, eventually. If they cured cancer tomorrow it would take a day before analysts worried about the impact on Medicare, what with people living so damned long and all.”

Lileks has also been blogging some fun stuff on buzz.mn which is the blog of the Star Tribune.


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