Tuesday, June 8, 2010

6/8/10 Post

Bernanke doesn't expect U.S. double-dip recession
"My best guess is we'll have a continued recovery but it won't feel terrific."
California Is Stuck in First Gear
California is rebounding more slowly than the rest of the U.S., weighing down the nation's recovery and underscoring how hard-hit the state remains on the eve of Tuesday's primaries.
Small Firms Face Higher Payroll Tax Under House Plan
…some business owners and their Washington lobbyists argue that the tax would put a damper on entrepreneurial activity at a time the economy can ill afford it.
Drumbeat for Fed rate hike grows louder
The drumbeat from some Federal Reserve officials for the central bank to raise interest rates grew louder on Thursday.
Fedspeak Highlights
Here are some highlights from speeches since the last meeting of the rate-setting Federal Open Market Committee.
Beware of falling prices
Falling prices for the raw materials of many industries have set off deflation warning bells for some economists, possibly signaling another global economic downturn.

Research, Reports & Studies
What Can We Learn from the Greenspan Commission?
...the key lesson from the Greenspan Commission is that government action will be required to address entitlement spending at some point to avoid the exhaustion of the social insurance trust funds.
Extraordinarily Large Band-Aids is a delusion to interpret economic statistics suggesting an economic turnaround over the past year without factoring out the extent to which that has been driven by unsustainable levels of deficit spending.

Economists’ Comments
Are You Smarter Than A Fifth Grader?
Who is better informed about the policy choices facing the country—liberals, conservatives or libertarians?
LIBOR: Liquidity Or Insolvency?
Uncertainty will rule the day until policy makers face the reality that markets need to know. It also means that there will be continued pressure in the short run on the euro, until the fiscal situation is finally resolved.
Secondary Sources: Post-Keynesianism, Emerging Markets, Inflation Targeting
A roundup of economic news from around the Web.

Graphic of the Day
Our Unsustainable Debt
See also "Congressional Contest" on WSJ's interactive Google map.

Administration Advances Plan to Federalize Private Pension System
Supporters say these changes are needed to ensure Americans save more for their retirement and have lifetime income options that prevent them from outliving their retirement savings
Low Labor Turnover, Job Openings Increase in April
There were 3.1 million job openings on the last business day of April 2010. The job openings rate increased over the month to 2.3 percent. The hires rate and the separations rate were unchanged.
A Lack of Trust
The lack of trust is that those in authority will go too far unless they are reined in, even if too soon.

"Did You Know?"
California, Oregon, Wisconsin, New York Connecticut, New Jersey, and Maryland all had a Millionaire's Tax as of 2009.