Mrs. Knott’s Chicken Dinner Restaurant Inflation Instruction

Sometime in the 1920s Walter Knott, an unsuccessful farmer, nursed several dying berry vines back to life at his Buena Park, California, farm.  Little did he know, his fortunes were about to change.

These unique vines were created by Rudolph Boysen, a horticulturalist, by crossing a blackberry, red raspberry and a loganberry.  The hybrid boysenberry, named after Boysen, turned out to be a huge hit, and the Knott family began selling massive quantities of the exclusive berries, preserves and pies, from a roadside stand along State Route 39.

About a decade later, Knott’s wife Cordelia began serving fried chicken dinners.  Who would have thought, but within a few years her chicken dinners had turned into a popular restaurant, with lines often several hours long.

Knott must have known the saying, ‘if you can get them to stop, you can get them to shop.’  For, before long, he’d added several specialty shops to entertain visitors while waiting for dinner.  Soon these became a major tourist draw. Continue reading

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The Illusion of Safe Investing

The Illusion of Safe InvestingThe Illusion of Safe Investing
By Dennis Miller, Editor, Money Forever

Retirees are often more concerned with the return of their money than the return on their money.  It’s understandable; after our peak earning years have passed financial safety becomes our primary concern since the opportunity to earn back investment losses is essentially over.

My high school graduating class celebrated its 50th reunion in 2008.  Since then I’ve noticed more and more friends losing their spouses, many after fifty or so years of marriage.  As expected, the widows club is growing at a faster pace than the widowers group.  Biology and the plain fact that women often marry men a few years older than they are mean that’s unlikely to change.

It is hard enough to lose your spouse, but when the more financially savvy partner passes away, whether it’s the husband or wife, stress on the survivor compounds quickly.  Widows and widowers often feel helpless and vulnerable when forced to handle tasks their spouse had usually managed. Continue reading

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Beardless Ben and Bad Bet Summers

Plenty of ink has been spilled lately brooding over who’ll be the next Fed Chairman when Ben Bernanke’s term concludes on January 31, 2014.  Here at the Economic Prism we really don’t give a rip who the next monetary Caesar is.  Still, there’s intrigue in the unknown…

We find delight in the spectacle of it all much like a child finds delight watching a circus performer balance a grocery cart on his chin.  We watch in awe of the popular madness over a job that shouldn’t exist to begin with.  Why do we need a bureaucrat fixing the price of money anyway?

Certainly, the world would be a much better place without all the distortions their rate suppression schemes produce.  But we don’t live in a world of what should or what ought to be…we live in what is.  So, thus, in the spirit of constructive mischief, we’ll pause to add some of our own scribbles to the voluminous body of cogitations.

The burden of today’s missive will likely fall squarely on one of two sets of round and droopy shoulders. Continue reading

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A New Plan to Socialize Losses

A New Plan to Socialize LossesPresident Obama’s a man with a plan.  A couple weeks ago he unveiled his plan to save the middle class by calling CEOs.  This week he told people in Arizona he plans to save the housing market by providing government guarantees to securitized mortgage packages.  No kidding…

“The core of Obama’s proposal involves winding down mortgage finance giants Fannie Mae and Freddie Mac, which own or guarantee more than half of all U.S. home loans and are critical to keeping capital flowing to lenders and borrowers,” reported Reuters.

“The administration wants to replace Fannie Mae and Freddie Mac with a system in which the private market buys home loans from lenders and repackages them as securities for investors.”

So far so good, right?  It sounds like the President wants to get government intervention and government price distortions out of the housing market altogether.  But unfortunately he’s not content to leave it at that.  For there’s always room to enter moral hazard into the plan… Continue reading

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