About J.F. Sebastian

The Most Expensive Election Ever


The GDP of Nicaragua: $6.4 billion; the cost of the US presidential election to the two candidates: $6 billion, or $20 in petty cash per every US man, woman and child. From Bloomberg Briefs: Today’s U.S. elections may be the most expensive in history, with a total of $6 billion being spent by the presidential […]

GDP: A Theater of the Absurd


How do you get from Nominal GDP to Real GDP? You subtract inflation. The Bureau of Economic Analysis (BEA) uses its own GDP deflator for this purpose, which is somewhat different from the BEA’s deflator for Personal Consumption Expenditures (PCE) and quite a bit different from the better-known Bureau of Labor Statistics’ inflation gauge, the […]

Global Derivatives Market at $1,200 Trillion Dollars

Some estimates put the size of the global derivatives market at $1,200 trillion dollars (that’s $1.2 quadrillion)… 20 times larger than the global economy If you are paying attention you know that the size of the derivatives market dwarfs the global economy.  But how big is it really? For years, there have been rumors that […]

Seven Fallacies of Mainstream Economics

The Global Financial Crisis (GFC), the extreme inequality of wealth world-wide, the materialism of modern life – seeming over consumption for consumptions sake and the environmental abuse we shower on our planet are not accidents, nor are they unavoidable consequences of the natural order of things.  They are the result of the modern practice of […]

The Mother of All Contrary Indicators


In what may be the mother of contrary stock market indicators, Bloomberg authors Steve Matthews and Tom Keene report Greenspan Says U.S. Stocks ‘Very Cheap,’ Likely to Rise. Former Federal Reserve Chairman Alan Greenspan said U.S. stocks offer good value and are likely to rise as corporate earnings increase over time. “Stocks are very cheap,” […]