Rolling Stone’s Sad “5 Economic Reforms Millennials Should Be Fighting For”

All of Twitter is
a-buzzing like hummingbird’s wings about a new, incredibly stupid
article in Rolling Stone by Jesse A. Myerson.

Titled “Five
Economic Reforms Millennials Should be Fighting For
,” here’s
the list for those of you in hurry (the explanatory chatter
accompanying each entry doesn’t make them any more convincing).

1. Guaranteed Work for Everybody

2. Social Security for All

3. Take Back The Land

4. Make Everything Owned by Everybody

5. A Public Bank in Every State


Read the whole piece here
 but as I noted, the real
drama with Myerson is happening on Twitter, where’s he’s been
mocked and supported relentlessly since the article, which went
live on January 3, was tweeted around by National Review’s

Charles
Cooke
. Like a character in a bad Tom Petty song,
Myerson’s not backing down and is in fact reveling in the
attention,
tweeting things such
as:

“Drinking scotch. Blocking trolls. It’s a merry life.”

“What they don’t seem to understand is: I really am very nice
and don’t want gulags.”

“Poor me. Writing for Rolling Stone and getting hated on by
dunces. Man, I’ve really let myself go.”

“What they don’t seem to understand is: I really am very nice
and don’t want gulags.”

“If I have to answer for Soviet gulags, these market/capital
twits have to answer for climate collapse, the greatest genocide in
history.”

That last tweet gives you a sense of Myerson’s quality of
thought (the “#FULLCOMMUNISM” in his Twitter bio gives you a sense
of his political commitments). There’s even a
#StandWithJesse
hashtag, which seems to be equal parts attaboys and flames
(e.g. “
#StandWithJesse
is an ableist hashtag born out of able bodied privilege and
contempt for those who can’t stand!”).

But to me, this episode is not about an ahistorical and
already-been-tried-and-failed-countless-times policy agenda. It’s
about the long decline of Rolling Stone.

Rolling Stone was borne
out of Jann Wenner’s love of music in a time (late 1960s) when
music was simply more important in the nation’s cultural life.
Youth music – encompassing everything from nostalgic pop (think
Mamas and Papas, Sha Na Na) to alt-country (Byrds, Flying Burrito
Brothers), to proto-punk (Stooges, MC5) – was never apolitical per
se but even the most tendentious protest songs were less about any
specific greivance and more about a generational shift.

The gap between Americans raised before World War II and after
was huge in a way that’s difficult to recall for those of us who
came of age after the ’60s. Greatest Generation parents who might
have grown up without on-demand indoor plumbing and survived the
Depression and fighting in Europe, the Pacific, North Africa, and
Korea came from a different planet than the one on which they
raised their kids. To their credit, they bequeathed to the baby
boomers a world that was still full of major problems but one that
was much richer and full of opportunites. And to their credit, the
boomers (of which I’m a very late example, having been born
in 1963) readily went about using new opportunities and freedoms
(expressive, sexual, educational, economic) to build the world they
wanted to live in.

In the late ’60s and a good chunk of the ’70s, youth-oriented
pop music was central to that project. Whatever you might think of
the Beatles’ music, their very existence – and their constant
self-recreations – made everything seem possible. They were far
from alone as pop music maguses, too.

Simply by talking with major pop figures, Rolling Stone could be
a vital and compelling magazine because it served as something like
a boomer conversation pit. Over time, however, music stopped
playing the same sort of vital role in generational conversations –
don’t get me wrong, it’s still a part of it all. But as the
mainstream in every area of life splintered and recombined into a
million different subspecies, no single form of cultural expression
matters so much to so many people anymore.

That’s a good thing for the culture and the country (and the
planet, really), but Rolling Stone has been looking for a
replacement core identity for decades now. The magazine that once
published New Journalism masterpieces about David Cassidy and
stardom, Patty Hearst’s rescuers, and “Charlie
Simpson’s Apocalypse
” had trouble figuring out how to deal with
a world in which pop and movie stars were less interesting than
ever (and more disciplined in terms of talking with the press) and
in which men and women of good faith might actually disagree over
complicated aesthetic and ideological matters. There has been a lot
of good writing and reporting over the years, but there’s no
question, I think, that the magazine is chasing trends and insights
rather than creating them.

A big part of the reason is this: Rather than represent a
wide-ranging set of viewpoints, Rolling Stone increasingly has
opted for a sort of standard Democratic liberalism, with a heavy
dose of guilt that comes from becoming rich and thus feeling
inauthentically committed to ’60s ideals of radical chic. When it
comes to things like drugs, the magazine is far more likely to
write uncritical, hysterical “new drug of choice” fables (such as
this
2003 gem
about meth as a “Plague in the Heartland”) than it is
to push back against the anti-drug animus that is every bit as much
a part of the Democratic Party ethos as it is of the Republican
one. The mag is more likely to publish mushy articles about
environmentalism and autism by
Robert Kennedy Jr
. than stage a debate that might shed actually
light on a given topic. For years now, its political coverage has
been dominated by writers such as Matt Taibbi, who operates as a
sort of cleaned-up version of his former eXile self. That is, he’s
a lefty’s lefty who drops enough f-bombs to add a cool quotient to
a magazine whose politics are, like a Capt. Beefheart record, safe
as milk. Someone like the self-consciously right-wing P.J.
O’Rourke, whose pieces from hellholes around the world were filled
with great reporting and anti-hippie jibes, need not apply. As
Brian Doherty has noted here, the magazine never seems to miss an
opportunity
to badger Bob Dylan
 into expressing total agreement
with some sort of liberal mainstream. Bob, don’t you think
Obama is the best? Bob, don’t you agree that global warming is the
worst thing around?

Is it really so hard for Rolling Stone to realize that Dylan –
the mag’s ultimate hero – is a far more interesting character
precisely because he’s heterodox (if not stark raving mad)? God,
the mag should have built an entire special issue around this
bizarre admission in Dylan’s memoir, Chronicles,
Vol. 1
:

There was no point in arguing with Dave [Van Ronk], not
intellectually anyway. I had a primitive way of looking at things
and I liked country fair politics. My favorite politician was
Arizona Senator Barry Goldwater, who reminded me of Tom Mix, and
there wasn’t any way to explain that to anybody.

Instead you get bullshit bits
about what’s on Barack Obama’s
iPod
 and a 2012 Douglas Brinkley Q&A with Obama

that takes butt-kissing
into a whole new dimension not yet
mappable by science. And a sad-sack story about “Five
Economic Reforms Millennials Should Be Fighting For
” that even
Raul Castro would have been embarrassed to publish.

In a world in which pop culture – especially
youth-oriented pop culture – allows a thousand flowers to bloom in
a way that was unimaginable even 40 years ago, Rolling Stone can no
longer get by simply by talking with Patti Smith or John Lennon or
Bob Dylan for 25,000 words at a time. It might have reinvented
itself as a clubhouse where people who love music or movies or
whatever could get together to argue over politics, economics, and
policy. That could indeed be interesting, especially in a world
where large chunks of young Americans are going right, left, and

especially libertarian
. Just as there is no longer one dominant
mode of music, there is no longer one dominant mode of
politics.

But the people at the helm of Rolling Stone cannot
seemingly even acknowledge that anyone who might disagree with them
on, say, the effects of minimum wage laws on the poor, is worth a
second thought. All they can do, out of a sense of liberal guilt,
is publish radical calls to arm that they must know are ridiculous.
Sadly, a magazine that was once required reading for anyone who
wanted to know what the younger generation cared about is now a
pedantic, insecure, and ultimately ineffective tool of Democratic
Party groupthink.

from Hit & Run http://reason.com/blog/2014/01/04/rolling-stones-5-economic-reforms-millen
via IFTTT

This "Non-Traditional" Valuation Measure Carries 3 Messages About U.S. Stocks

Submitted by F.F.Wiley of Cyniconomics blog,

[S]tock prices have risen pretty robustly. But I think that if you look at traditional valuation measures, the kind of things that we monitor, akin to price-equity ratios, you would not see stock prices in territory that suggests bubble-like conditions.

 

– Janet Yellen, responding to a question in November’s nomination hearing

We offered our take on stock valuation several times last year, while arguing that traditional price-to-earnings multiples (P/Es) are almost useless during periods of heavy policy stimulus. We’ll take a different direction here, by suggesting a “fix” for an entirely different problem with traditional P/Es. Our analysis reveals three messages about current stock prices.

We’ll start with 100+ years of traditional P/Es based on trailing 12 month earnings:

price to peak earnings 1

From this simple chart, analysts draw conclusions about whether valuation is high, low or neutral versus historic norms. One problem with that – and the motivation behind this post – is in the depiction of historic norms. Analysts typically weight periods of expanding earnings equally with periods of depressed earnings. But when earnings are depressed, P/Es tend to spike upwards as the earnings input to the denominator shrinks.

Unusual jumps in P/Es often occur in bear markets, as we saw during the Internet bust and again in the housing bust. In each of these instances, P/Es reached all-time highs despite the fact that stock prices were far below prior peaks. For example, when the S&P 500 plummeted below 700 in March 2009, P/Es climbed to a new record of 79, on their way to five consecutive months of over 100! (These results are cut off the chart for scaling purposes.)

Such distortions may make you wonder: Do P/Es during earnings recessions tell us anything at all about stock valuation?

Our answer is no.

As any Excel user who’s been foiled by a “#DIV/0” message knows, ratios demand careful attention when the denominator is volatile. In this case, a better approach is to divide equity prices by the highest earnings result from any prior 12 month period. (Dividing by trend earnings or 10 year average earnings is better still, but we’ll leave these methods for other posts.) This measure of “price-to-peak earnings” (P/PE) isn’t skewed by recessions because the denominator never falls.

Here’s the chart:

price to peak earnings 2

The last three data points (for October, November and December) are 18.2, 18.7 and 18.8. As of November, we reached a new high for the current bull market. What’s more, there are only nine comparable, historic episodes of P/PE climbing above 18.5 (as numbered on the chart). Combining these episodes with other statistics, we’ve identified three possible messages:

Message #1: Beware the bear (he’ll be here within a few months)

After five of the nine P/PE breaches of 18.5, a bear market began within the next three months (with four of the market peaks remarkably occurring in the very next month):

price to peak earnings 3

Message #2: Time to buy (earnings will bust through their prior peak)

In three other episodes, earnings were accelerating and still hadn’t reached the peak of the previous earnings cycle. Each time, the P/PE breach of 18.5 was followed by three consecutive years of double-digit earnings growth, with stock prices rising strongly but still lagging earnings:

price to peak earnings 4

Message #3: Bull to bubble (prices will leave earnings behind)

In the remaining episode (1996), earnings had already breached their prior cycle peak and would soon level off. The bigger story after this P/PE breach of 18.5 was the dizzying rise in stock prices that would outpace earnings by a large margin. Here are the details, along with a comparison to circumstances as of last month:

price to peak earnings 5

One way to interpret these results is to focus on the number of episodes linked to each of the three messages. That won’t be our approach.

We prefer to condition the results on two factors, one based on the earnings cycle and the other on the Fed. For the first factor, we look at whether earnings were accelerating upwards from below the prior cycle peak. For the second factor, we separate the Fed’s first eight decades (described according to the old-time philosophy of “taking away the punch bowl when the party gets going”) from the last two decades of Greenspan/Bernanke puts (based on the new philosophy of “refilling the punch bowl”).

price to peak earnings 6

As you might guess from the grid, we’re not convinced that current P/PEs signal a bear market in 2014, despite the facts that:

  1. Five of nine instances (56%) of P/PE breaching 18.5 were closely followed by market peaks.
  2. When earnings are at all-time highs, five of six instances (83%) of P/PE breaching 18.5 were closely followed by market peaks.

Not only do we have to be careful about using price multiples for forecasting (as mentioned in earlier posts), but we currently sit in the grid’s lower right-hand quadrant with the Fed setting new standards for short-term market support. The only other P/PE breach of 18.5 belonging to this quadrant was in the early stages of the Internet bubble.

What’s more, recent earnings and stock performance match up more closely with the Internet bubble episode – as shown in the “Message 3” table – than with the episodes in the “Message 2” table.

So, are we predi
cting four years of soaring stock prices and nonsensical valuations, as in 1996 to 2000?

Not exactly.

The past can offer clues to the future but it doesn’t give us a blueprint. The bigger message is that today’s valuations don’t bode well for long-term returns, where long-term means beyond the next market peak. Prices could surely bubble upwards from here, but bubbles are invariably followed by severe bear markets. (We’ll expand on this outlook in a future post, where we’ll add total return estimates.)

More importantly, we shouldn’t be fooled by traditional valuation measures. P/Es, in particular, have several flaws. We’ve shown in past articles that we get completely different results when we adjust earnings to account for mean reversion. We made a separate adjustment here to correct for the distorting effects of earnings recessions. Either way, our conclusions are a far cry from the “nothing to see here” that we keep hearing from the Fed.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/42RhYniPiBU/story01.htm Tyler Durden

This “Non-Traditional” Valuation Measure Carries 3 Messages About U.S. Stocks

Submitted by F.F.Wiley of Cyniconomics blog,

[S]tock prices have risen pretty robustly. But I think that if you look at traditional valuation measures, the kind of things that we monitor, akin to price-equity ratios, you would not see stock prices in territory that suggests bubble-like conditions.

 

– Janet Yellen, responding to a question in November’s nomination hearing

We offered our take on stock valuation several times last year, while arguing that traditional price-to-earnings multiples (P/Es) are almost useless during periods of heavy policy stimulus. We’ll take a different direction here, by suggesting a “fix” for an entirely different problem with traditional P/Es. Our analysis reveals three messages about current stock prices.

We’ll start with 100+ years of traditional P/Es based on trailing 12 month earnings:

price to peak earnings 1

From this simple chart, analysts draw conclusions about whether valuation is high, low or neutral versus historic norms. One problem with that – and the motivation behind this post – is in the depiction of historic norms. Analysts typically weight periods of expanding earnings equally with periods of depressed earnings. But when earnings are depressed, P/Es tend to spike upwards as the earnings input to the denominator shrinks.

Unusual jumps in P/Es often occur in bear markets, as we saw during the Internet bust and again in the housing bust. In each of these instances, P/Es reached all-time highs despite the fact that stock prices were far below prior peaks. For example, when the S&P 500 plummeted below 700 in March 2009, P/Es climbed to a new record of 79, on their way to five consecutive months of over 100! (These results are cut off the chart for scaling purposes.)

Such distortions may make you wonder: Do P/Es during earnings recessions tell us anything at all about stock valuation?

Our answer is no.

As any Excel user who’s been foiled by a “#DIV/0” message knows, ratios demand careful attention when the denominator is volatile. In this case, a better approach is to divide equity prices by the highest earnings result from any prior 12 month period. (Dividing by trend earnings or 10 year average earnings is better still, but we’ll leave these methods for other posts.) This measure of “price-to-peak earnings” (P/PE) isn’t skewed by recessions because the denominator never falls.

Here’s the chart:

price to peak earnings 2

The last three data points (for October, November and December) are 18.2, 18.7 and 18.8. As of November, we reached a new high for the current bull market. What’s more, there are only nine comparable, historic episodes of P/PE climbing above 18.5 (as numbered on the chart). Combining these episodes with other statistics, we’ve identified three possible messages:

Message #1: Beware the bear (he’ll be here within a few months)

After five of the nine P/PE breaches of 18.5, a bear market began within the next three months (with four of the market peaks remarkably occurring in the very next month):

price to peak earnings 3

Message #2: Time to buy (earnings will bust through their prior peak)

In three other episodes, earnings were accelerating and still hadn’t reached the peak of the previous earnings cycle. Each time, the P/PE breach of 18.5 was followed by three consecutive years of double-digit earnings growth, with stock prices rising strongly but still lagging earnings:

price to peak earnings 4

Message #3: Bull to bubble (prices will leave earnings behind)

In the remaining episode (1996), earnings had already breached their prior cycle peak and would soon level off. The bigger story after this P/PE breach of 18.5 was the dizzying rise in stock prices that would outpace earnings by a large margin. Here are the details, along with a comparison to circumstances as of last month:

price to peak earnings 5

One way to interpret these results is to focus on the number of episodes linked to each of the three messages. That won’t be our approach.

We prefer to condition the results on two factors, one based on the earnings cycle and the other on the Fed. For the first factor, we look at whether earnings were accelerating upwards from below the prior cycle peak. For the second factor, we separate the Fed’s first eight decades (described according to the old-time philosophy of “taking away the punch bowl when the party gets going”) from the last two decades of Greenspan/Bernanke puts (based on the new philosophy of “refilling the punch bowl”).

price to peak earnings 6

As you might guess from the grid, we’re not convinced that current P/PEs signal a bear market in 2014, despite the facts that:

  1. Five of nine instances (56%) of P/PE breaching 18.5 were closely followed by market peaks.
  2. When earnings are at all-time highs, five of six instances (83%) of P/PE breaching 18.5 were closely followed by market peaks.

Not only do we have to be careful about using price multiples for forecasting (as mentioned in earlier posts), but we currently sit in the grid’s lower right-hand quadrant with the Fed setting new standards for short-term market support. The only other P/PE breach of 18.5 belonging to this quadrant was in the early stages of the Internet bubble.

What’s more, recent earnings and stock performance match up more closely with the Internet bubble episode – as shown in the “Message 3” table – than with the episodes in the “Message 2” table.

So, are we predicting four years of soaring stock prices and nonsensical valuations, as in 1996 to 2000?

Not exactly.

The past can offer clues to the future but it doesn’t give us a blueprint. The bigger message is that today’s valuations don’t bode well for long-term returns, where long-term means beyond the next market peak. Prices could surely bubble upwards from here, but bubbles are invariably followed by severe bear markets. (We’ll expand on this outlook in a future post, where we’ll add total return estimates.)

More importantly, we shouldn’t be fooled by traditional valuation measures. P/Es, in particular, have several flaws. We’ve shown in past articles that we get completely different results when we adjust earnings to account for mean reversion. We made a separate adjustment here to correct for the distorting effects of earnings recessions. Either way, our conclusions are a far cry from the “nothing to see here” that we keep hearing from the Fed.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/42RhYniPiBU/story01.htm Tyler Durden

Fed's Bill Dudley: The Fed Doesn't Fully Understand How QE Works

Well, it took three years, but finally the Goldman Sachs-based head of the New York Fed, Bill Dudley, admitted what we all knew. From a speech just given by NY Fed’s Bill Dudley at the 2014 AEA meeting in Philadelphia:

We don’t understand fully how large-scale asset purchase programs work to ease financial market conditions

Or, in other words, “we still don’t know how QE works.” It just does (thank you Kevin Henry). And this coming from the people who want their word to become equivalent to gospel in a time when QE is being phased out and replaced with forward guidance. Luckily, at least the Fed knows all about how “forward guidance” works.

The good news: it only took $4+ trillion in Fed “assets” for the central bank to understand it had no idea what it was doing.

In retrospect, things could always have been worse.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/osVlyhkTcRY/story01.htm Tyler Durden

Fed’s Bill Dudley: The Fed Doesn’t Fully Understand How QE Works

Well, it took three years, but finally the Goldman Sachs-based head of the New York Fed, Bill Dudley, admitted what we all knew. From a speech just given by NY Fed’s Bill Dudley at the 2014 AEA meeting in Philadelphia:

We don’t understand fully how large-scale asset purchase programs work to ease financial market conditions

Or, in other words, “we still don’t know how QE works.” It just does (thank you Kevin Henry). And this coming from the people who want their word to become equivalent to gospel in a time when QE is being phased out and replaced with forward guidance. Luckily, at least the Fed knows all about how “forward guidance” works.

The good news: it only took $4+ trillion in Fed “assets” for the central bank to understand it had no idea what it was doing.

In retrospect, things could always have been worse.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/osVlyhkTcRY/story01.htm Tyler Durden

All The World's PMIs In One Chart

Of the 21 nations covered by PMI "soft data" surveys, only 4 have sub-50 (deceleration) prints – Russia remains at multi-year lows along with France (core Europe?), Australia (but but China?), and Greece. Of course, as Goldman (some of the optimism on the basis of recent manufacturing PMIs… may not square with evidence of a structural break in the link between the PMIs and growth) and BofAML (it's important to understand how crude these surveys are) note, faith in these 'surveys' is often misplaced (and current levels suggest the rolling over is coming soon).

 

 

Bear in mind, Goldman's own work on "soft data" surveys like PMI in Europe – We conclude that some of the optimism on the basis of recent manufacturing PMIs… may not square with evidence of a structural break in the link between the PMIs and growth. While a reading of 50 may in pre-crisis days have indicated positive growth… it today may only indicate flat growth, as the external financing constraint prevents better sentiment from translating into activity.

 

And BofAML's destruction ofthe "myth" of exuberant PMIs,

It is important to understand how crude these surveys are. Each month, a few hundred purchasing managers are asked if a variety of activity variables are up, down, or the same relative to the prior month. Their responses are then converted into diffusion indexes: the sum of the number managers reporting activity is “increasing” and half of those reporting “the same.” Note that there is some guesswork involved: the survey is taken before the month is over and some of the questions cover areas of the firm that are difficult for a purchasing manager to get a timely read on.

Fans of the two indexes point out that they are relatively stable, easy to interpret and never revised. However, in our view, the simplicity of the data is a drawback, not an advantage. It means no attempt is made to correct misreporting or to include late respondents. Moreover, the sample they use is not representative of the overall economy. They represent a broad cross-section of industries, but they oversample big firms and they make no attempt to adjust for the birth and death of firms.

 

Chart: JPMorgan


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/zVEOFpsnDvE/story01.htm Tyler Durden

All The World’s PMIs In One Chart

Of the 21 nations covered by PMI "soft data" surveys, only 4 have sub-50 (deceleration) prints – Russia remains at multi-year lows along with France (core Europe?), Australia (but but China?), and Greece. Of course, as Goldman (some of the optimism on the basis of recent manufacturing PMIs… may not square with evidence of a structural break in the link between the PMIs and growth) and BofAML (it's important to understand how crude these surveys are) note, faith in these 'surveys' is often misplaced (and current levels suggest the rolling over is coming soon).

 

 

Bear in mind, Goldman's own work on "soft data" surveys like PMI in Europe – We conclude that some of the optimism on the basis of recent manufacturing PMIs… may not square with evidence of a structural break in the link between the PMIs and growth. While a reading of 50 may in pre-crisis days have indicated positive growth… it today may only indicate flat growth, as the external financing constraint prevents better sentiment from translating into activity.

 

And BofAML's destruction ofthe "myth" of exuberant PMIs,

It is important to understand how crude these surveys are. Each month, a few hundred purchasing managers are asked if a variety of activity variables are up, down, or the same relative to the prior month. Their responses are then converted into diffusion indexes: the sum of the number managers reporting activity is “increasing” and half of those reporting “the same.” Note that there is some guesswork involved: the survey is taken before the month is over and some of the questions cover areas of the firm that are difficult for a purchasing manager to get a timely read on.

Fans of the two indexes point out that they are relatively stable, easy to interpret and never revised. However, in our view, the simplicity of the data is a drawback, not an advantage. It means no attempt is made to correct misreporting or to include late respondents. Moreover, the sample they use is not representative of the overall economy. They represent a broad cross-section of industries, but they oversample big firms and they make no attempt to adjust for the birth and death of firms.

 

Chart: JPMorgan


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/zVEOFpsnDvE/story01.htm Tyler Durden

Zenon Evans: Pussy Riot is Free! But They Aren't Russia's Key to Freedom.

Pussy Riot is free! The western world
has poured out support for these daring punk rock feminists in
their pursuit for life, liberty, and so on and so forth in their
underdog fight against Soviet
Premier
 Bond villain Russian
President Vladimir Putin, and you should be overjoyed. At least,
that’s the narrative dominating American media. Unfortunately, says
Zenon Evans, this reductive view of the affair overlooks the damage
groups like Pussy Riot may do to the cause of freedom—and the
group’s own disregard for liberal values.

View this article.

from Hit & Run http://reason.com/blog/2014/01/04/zenon-evans-says-pussy-riot-is-free-but
via IFTTT

Zenon Evans: Pussy Riot is Free! But They Aren’t Russia’s Key to Freedom.

Pussy Riot is free! The western world
has poured out support for these daring punk rock feminists in
their pursuit for life, liberty, and so on and so forth in their
underdog fight against Soviet
Premier
 Bond villain Russian
President Vladimir Putin, and you should be overjoyed. At least,
that’s the narrative dominating American media. Unfortunately, says
Zenon Evans, this reductive view of the affair overlooks the damage
groups like Pussy Riot may do to the cause of freedom—and the
group’s own disregard for liberal values.

View this article.

from Hit & Run http://reason.com/blog/2014/01/04/zenon-evans-says-pussy-riot-is-free-but
via IFTTT

Come Back, Nanny Bloomberg? Remembering Mayor Mike as Bill de Blasio Takes Reins in NYC

 

“The Mike Bloomberg Legacy: 12 Years of Little Tyrannies
in 2 Minutes,” produced by Anthony L. Fisher. Go here for details,
links, resources, and downloadable versions.

Finally-gone three-term Mayor Mike Bloomberg – in NYC, it takes
forever to evict anyone – is looking a little better after
the first week of the Bill de Blasio era. As I noted in
a Daily Beast column
yesterday, at the very top of de Blasio’s
“boldy progressive” agenda for the Big Apple is shutting down the
city’s venerable horse-carriage-ride industry. Indeed, despite a
sluggish economy, a failing school system, and more,

here’s de Blasio, hell-bent on becoming the Simon Bolivar of the
Mr. Ed crowd. In fact, he’s not just going to free our four-legged
friends. He’s even pledged to “provide a humane retirement of all
New York City carriage horses,” thus loading even more pension and
health-care liabilities on his preferred beasts of burden, the
city’s taxpayers.


Read the whole thing
.

If there’s an upside to de Blasio’s focusing
first on horses, it’s that it will delay his larger economic
agenda. As my Reason colleague Jim Epstein has pointed out (also at

the Beast
), de Blasio has pledged to fix New York City’s
“inequality crisis.”

In his inaugural speech, de Blasio promised to make good on his
campaign promise of solving New York’s “inequality crisis.” Twice
he name-checked Fiorello La Guardia, New York’s celebrated 99th
mayor, who, though de Blasio didn’t mention it, famously quipped
that there’s “no Democratic or Republican way of cleaning the
streets.” This often-quoted line encapsulates the sound wisdom that
the job of a mayor is to manage the complex workings of urban life:
pick up the garbage, fix the potholes, and guard the coffers.

In his speech,
de Blasio affirmed that his main interest is in re-engineering New
York’s social order.

For de Blasio, that means hiking taxes, padding out public
payrolls, protecting and subsidizing native industries, and
more. The good news, writes Epstein,

City Hall is subject to stringent accounting rules that
mandate a balanced budget—a positive legacy of Gotham’s 1970s
fiscal crisis. The mayor doesn’t have all that much extra cash on
hand to reward the city’s labor unions with rich new
contracts.


Read the whole thing.

Which brings us back to the man
whose mug is at the top of this post: Mike Bloomberg. For all of
his faults, Epstein writes, Bloomberg wasn’t a product of a
“culture of far-left theatrics” the way de Blasio is. Bloomberg was
enough of a billionaire to realize that certain policies could
destroy a city’s economy.

And yet, in his dozen years in office, Bloomberg also set the
pace for nanny-state intrusions based more on apparent blood-sugar
spikes of his own than anything resembling sound science or,
horrors, a respect for individual autonomy. No personal consumption
item – the size of a serving of soda or the salt content of a meal
– was too small to escape his all-knowing counsel. There’s a reason
that he’s the Babe Ruth of Reason
TV’s Nanny of the Month series
, appearing more often than
Michael Jackson or Princess Di did on the cover of People.

And, given de Blasio’s plans for New York, there’s a reason why
residents may join Jim Epstein in saying, “It’s hard to admit this,
but Mike, we may miss you.”

from Hit & Run http://reason.com/blog/2014/01/04/come-back-nanny-bloomberg-remembering-ma
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