tag:blogger.com,1999:blog-8839412.post837836761395478233..comments2024-03-19T07:48:54.021-06:00Comments on Gus Van Horn: 3-5-11 HodgepodgeGus Van Hornhttp://www.blogger.com/profile/05126749051688217781noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-8839412.post-24181255524859146382011-03-05T18:10:22.903-06:002011-03-05T18:10:22.903-06:00C.,
I think that this time around, with all the p...C.,<br /><br />I think that this time around, with all the publicity <i>Atlas Shrugged</i> and Objectivism are getting -- and with people like Wendy Milling out there -- the REAL story will get wide enough circulation to make a positive difference.<br /><br />GusGus Van Hornhttps://www.blogger.com/profile/05126749051688217781noreply@blogger.comtag:blogger.com,1999:blog-8839412.post-77820316907316950992011-03-05T12:30:37.330-06:002011-03-05T12:30:37.330-06:00Along similar lines, my father was once an account...Along similar lines, my father was once an accountant for US Steel. Everyone blames foreign competition for the demise of the United States Steel industry, but according to my father, part of the problem was that, while modern (at the time, the 60's) blast furnaces had a 15 to 20 year lifespan before replacement, the IRS only allowed them to depreciate them on a 50 year schedule. So best case, the steel industry was forced to take, as income, capital expenditures up to 2 1/2 times faster than the allowed depreciation. The couldn't afford to do that so they lagged on the technical edge and the foreign competition, not dealing with such absurditites from their own government, took the leading market position away from the US. Of course, I'm not discounting the effect of unions and featherbedding or subsidies of foreign producers, but just giving one instance of regulatory absurdity that cost the US companies their technical lead. This point is never raised in discussions of the failure of American industries.<br /><br />c. andrewAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8839412.post-17846491417072790232011-03-05T12:24:59.243-06:002011-03-05T12:24:59.243-06:00Thanks for the notes on Tom Lehrer, the Counting C...Thanks for the notes on Tom Lehrer, the Counting Crows, and Mark to Market. The last, terminologically speaking, almost begs for a musical treatment by a former incarnation of Mark Wahlberg, aka, Markie Mark. But all punning aside...<br /><br />And older friend of mine who spent most of his life in commercial real estate told me, in the early 90's, that the so-called savings and loan crisis was compeletely government generated. <br /><br />As he explained, the value of commercial property is as often dictated by its treatment in the tax code than it is by prevailing market conditions. And that even if one wanted to base one's decisions entirely on the market aspects of a property you would be at a serious disadvantage vis a vis your competitors and would be doing your clients a severe dis-service thereby. <br /><br />The 1986 Tax Reform Act changed how commercial properties were to be written off. He walked me through exactly what impact that had on their market values but it was not my area of expertise and it has not stayed with me. But he said that market values were cut in half by changing those tax provisions. <br /><br />So, in much the same way as the SarbOx Mark to Market, lending institutions which on December 31 had a healthy asset to liability ratio, found, on January 1 that they no longer did so. And thus was born the Savings and Loan Crisis. No mention was made of the pivotal role that the tax code re-write had in all of this. <br /><br />Now some of the S&L's were doing some risky stuff on the margin but according to my friend, it would not have mattered without the triggering impact of the Tax Reform Act. But the media seized on the risky narrative and never addressed the regulatory one. <br /><br />c. andrewAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-8839412.post-46796198110729017672011-03-05T10:15:23.201-06:002011-03-05T10:15:23.201-06:00Ben,
My "Weekend Reading" sub-posts are...Ben,<br /><br />My "Weekend Reading" sub-posts are my own small repayment (via promotion) for getting to read good columns written from an Objectivist perspective. I, too have become a fan of both Michael Hurd and Jonathan Hoenig as a result of the fact that they produce regularly. <br /><br />As an occasional column-writer with lots to learn, all these writers (but especially Hoenig and Hurd, who produce regularly) teach me and provide me with inspiration by cracking into the popular media.<br /><br />All that said, I'm glad I helped you discover Michael Hurd. <br /><br />GusGus Van Hornhttps://www.blogger.com/profile/05126749051688217781noreply@blogger.comtag:blogger.com,1999:blog-8839412.post-30581746533746120602011-03-05T09:24:16.949-06:002011-03-05T09:24:16.949-06:00You've been quite into Michael Hurd lately. I ...You've been quite into Michael Hurd lately. I must thank you for introducing me to him, as he's quickly become my favorite writer on psychological matters.Anonymoushttps://www.blogger.com/profile/02343632915029739024noreply@blogger.com