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Thursday, December 22, 2011

General Economics

News                                                                                                                             
Bloomberg | Decline in U.S. Home Values to Be Smallest in Four Years, Zillow Reports
The total value of the country’s housing probably fell by more than $681 billion, about 35 percent less than the $1.1 trillion lost in 2010.
Market Watch | A year of aggressive antitrust oversight
The Obama administration’s defeat of AT&T Corp.’s $39 billion acquisition of T-Mobile USA caps what has been the administration’s most determined year yet in beating back Corporate America’s blockbuster deal-making.
Bloomberg | Oil Rises for Fourth Day as U.S. Supplies Drop Most in a Decade
Futures rose as much as 0.7 percent after gaining 1.5 percent yesterday as Energy Department data showed stockpiles fell 10.6 million barrels, the largest decrease since February 2001.
Market Watch | Third-quarter GDP growth cut to 1.8% from 2.0%
U.S. economic growth in the third quarter was a little bit weaker than previously forecast, mainly because consumers spent less money on health care, the Commerce Department reported Thursday.
Bloomberg | Leading U.S. Indicators Rise More Than Forecast in Sign of Further Growth
The index of U.S. leading indicators climbed more than forecast in November, a sign that the world’s largest economy will keep growing in early 2012.

Econ Comments                                                                                                             
LA Times | Through charitable giving, Americans spread the wealth
Despite the tough economy, or perhaps because of it, Americans are giving more to charity and volunteering more than ever — and more than the rest of the world.
WSJ | What Fannie and Freddie Knew
The SEC shows how the toxic twins turbocharged the housing bubble.
CNBC | Signs Point to Economy’s Rise, but Experts See a False Dawn
Many forecasters say the recent uptick probably does not represent the long-awaited start to a strong, sustainable recovery.
AEI | A resolution for the New Year: Restart the trade agenda
In 2011, the United States’s sleepy free trade agenda finally got a shot of caffeine, but if the U.S. wants to seriously bolster its economy in 2012, policymakers ought to anchor their boats to the quay of an aggressive free trade agenda.
WSJ | How Immigrant Entrepreneurs Turbocharge U.S. Trade
While skilled immigrants make America smarter, richer and more influential, the process for obtaining a work visa is dismayingly slow, capricious and humiliating.

Blogs                                                                                                                             
Think Markets | Menace to Savings and Small Businesses
Regulators are still in the process of determining how to implement the Volcker rule but the potential impact is already discernible. Likely victims include millions of Americans who save for their retirement and smaller companies that need to borrow money.
Café Hayek | Klein on the invisible hand
Instead of trying to put a dollar value on the gains and losses and adding them up for some net measure of efficiency, it’s more honest to say here are the winners, here are the losers, here is what happens to them and here are the larger effects on liberty or security or innovation or other things we might also value.
Mercatus Center: Neighborhood Effects | NYC Taxi Reform Doesn’t Go Far Enough
The new rule will allow passengers to hail some livery cars in outer boroughs and add 2,000 additional medallions for yellow cabs with wheelchair access.
Heritage Foundation | Census Bureau Says Half of Americans Are Poor? Think Again
Of course, that all depends how you define “poverty” or “near poverty.” And by the definition of this new measure, quietly ushered in by the Obama Administration, “low-income” in some areas of the country can now mean up to nearly $90,000 for a family of four.
Ecolong | Today on the Eurozone Crisis
At this point, it looks to me as though the European banks are about as private as Freddie Mac and Fannie Mae. And in Europe, the non-bank financial sector is much smaller than in the U.S.
Calculated Risk | Final December Consumer Sentiment at 69.9
The final December Reuters / University of Michigan consumer sentiment index increased to 69.9, up from the preliminary reading of 67.7, and up from the November reading of 64.1.

Reports                                                                                                                         
NBER | Shaped by Booms and Busts: How the Economy Impacts CEO Careers and Management Style
This paper examines how early career experiences affect the career path and promotion of managers as well as the managerial style that they develop when becoming CEOs. We identify the impact of an exogenous shock to managers’ careers, in particular the business cycle at the career starting date.

Health Care

News                                                                                                                             
CNN: Money | Medicare doctors fed up with Washington
The American Academy of Family Physicians, which represents 100,300 family doctors, issued a statement Tuesday expressing "outrage that Congress failed to prevent the 27.4% Medicare physician pay cut mandated by current law."

Monetary

News                                                                                                                             
NY Times | European Bank in Strong Move to Loosen Credit
European central bankers on Wednesday pumped nearly $640 billion into the Continent’s banking system. The move raised hopes that the money could alleviate the region’s credit squeeze.

Blogs                                                                                                                             
WSJ: Real Time Economics | IMF Chief Economist’s Four Lessons From 2011
We have known for a long time about self-fulfilling bank runs; this is why deposit insurance was created. Self-fulfilling attacks against pegged exchange rates are the stuff of textbooks. And we learned early on in the crisis that wholesale funding could have the same effects, and that runs could affect banks and non-banks alike. This is what led central banks to provide liquidity to a much larger set of financial institutions.

Taxes

News                                                                                                                             
Bloomberg | Payroll Executives Complain About Lawmakers' Penchant for Brief Fixes
The battle over extending a payroll-tax holiday is creating headaches for businesses, and highlights Washington's growing penchant for short-term fixes in tax policy.
Fox News | Understanding Congress' payroll tax cut fight
If President Barack Obama, the House and the Senate all want to extend a Social Security payroll tax cut and jobless benefits through next year, why are they fighting so bitterly over doing it?

Blogs                                                                                                                             
Forbes | Don't Extend The Ill-Conceived, Evil Payroll Tax Cut
That this temporary cut in the Social Security payroll tax enjoyed bipartisan support a year ago shows the extent to which the Keynesian Superstition pervades both of our political parties. Members on both sides of the aisle bought into the fantasy that “putting money into people’s pockets” would increase demand. It didn’t. Economic growth slowed markedly at the exact moment that the payroll tax cut was enacted.

Budget

News                                                                                                                             
Bloomberg | Payroll Tax Tiff Times 25 Awaits Congress
The brinksmanship in Congress over a payroll tax-cut extension may end up looking like a quaint disagreement by next December, when lawmakers must grapple with a fiscal policy debate at least 25 times more costly.

Econ Comments                                                                                                             
Politico | Fitch issues warning about U.S. debt
Fitch warned Wednesday that the United States’ rising debt was not “consistent” with the country’s AAA credit, but the ratings agency said it wouldn’t act until at least 2013.

Blogs                                                                                                                             
Cato @Liberty | Truth in Budget Reporting
Newspaper articles on government budgets virtually never tell the reader the two most important facts: What was the budget last year, and what is it this year?

Employment

News                                                                                                                             
CNN: Money | Unemployment benefits extension: What's at stake
In 11 days, a provision will expire that could cause jobless Americans to lose a critical lifeline next year. The White House estimates that by Jan. 14, some 697,000 unemployed Americans could lose benefits. By March 3, the number of Americans poised to lose benefits will top 2.6 million.
Market Watch | Initial jobless claims lowest since April 2008
First-time filings for claims fell 4,000 to a seasonally adjusted 364,000 in the week ended Dec. 17. The four-week average of initial claims — a smoother gauge than the weekly data — fell 8,000 to 380,250, the fewest since June 2008.

Blogs                                                                                                                             
WSJ: Real Time Economics | Vital Signs: Slowing U.S. Population Growth
U.S. population growth has slowed. America’s population grew by 2.2 million between July 2010 and July 2011 to reach a total of 311.6 million, according to Census estimates.

Wednesday, December 21, 2011

General Economics

News                                                                                                                             
Bloomberg | Italy’s GDP Contraction Might Indicate Fifth Recession Since 2001: Economy
The Italian economy contracted in the third quarter, signaling the country may have entered its fifth recession since 2001 as the government adopts new austerity measures that will further weigh on growth.
Politico | Wanted: Guide to retool manufacturing
Like presidents before him, Barack Obama is ramping up efforts to stoke a manufacturing renaissance — and he wants generations accustomed to factory layoffs believing in a turnaround.

Econ Comments                                                                                                             
WSJ | The Financial Crisis on Trial
The SEC fingers the government-backed mortgage buyers, not Wall Street greed.
AEI | Save the euro, end the Atlantic alliance
After the European Union’s latest crisis summit last week, international financial markets reacted cautiously. And well they should, since this umpteenth effort to save several Eurozone countries from fiscal collapse, and the common currency itself, produced mediocre results.
Cato Institute | Keystone XL: Liberal Histrionics Answered with Conservative Histrionics
Both opponents and proponents of the project are offering palpable nonsense to gin up their respective bases in hopes of horsewhipping their electoral opponents in 2012.

Blogs                                                                                                                             
Calculated Risk | Existing Home Sales in November: 4.42 million SAAR, 7.0 months of supply
Total existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, increased 4.0 percent to a seasonally adjusted annual rate of 4.42 million in November.
Heritage Foundation | Gas Prices at All-Time Christmas High
Americans hitting the road this week are likely to encounter the highest-ever price for gas at Christmas in history. According to figures from AAA, the nationwide average for regular unleaded is $3.21 per gallon — an increase of 23 cents over last year’s Christmas record.
Calculated Risk | MBA: Mortgage Purchase Application Index decreases, Mortgage rates at low for year
The Refinance Index decreased 1.6 percent from the previous week. The seasonally adjusted Purchase Index decreased 4.9 percent from one week earlier.
WSJ: Real Time Economics | Secondary Sources: Finance Dominance, New Economic Order, Central Bank Imbalances
A roundup of economic news from around the Web.
WSJ: Real Time Economics | Housing Market’s Foundation Looking More Stable
Builders were busier than expected in November, and many are more upbeat heading into 2012. In recent years, housing was supported by temporary help from government tax rebates. Now, the sector looks as if it can stand on its own.

Reports                                                                                                                         
Mercatus Center | A Comparison of Indices that Rank State Economic Competitiveness
Studies from the Mercatus Center, the Tax Foundation, and the American Legislative Exchange Council have ranked the states on the basis of their economic and social policies. These organizations have designed indices to help individuals select states with the fiscal climates that most closely match their ideals as well as to provide state policymakers with ways to compare their states’ legal and economic climates.

Health Care

News                                                                                                                             
National Journal | Lobbying Groups Criticize House Doc Fix Vote
The House voted 229 to 193 to disagree with the Senate bill, a procedural motion that denied lawmakers an up-or-down vote on the legislation. If Congress does not act before the end of the year, Medicare doctors get a 27 percent cut in pay.

Blogs                                                                                                                             
Heritage Foundation | Obama Administration Agrees: Florida Medicaid Reform Pilot Good for Patients and Taxpayers
The bottom line with Florida’s Medicaid Reform is that when the patient is the priority, government and HMO bureaucrats are finally held accountable. Costs flatten and patient health and satisfaction improves.
Mercatus Center | Medicare fraud: bogus clinics in barns
Each year the Medicare program loses millions of dollars to fraud. Applicants simply set up fake clinics using stolen medical IDs and real addresses in barns, UPS stores and abandoned apartments.

Reports                                                                                                                         
Heritage Foundation | How Medicare Price Controls Have Contributed to Drug Shortage
As Congress searches for policy solutions, it is crucial that lawmakers understand the role that government price controls, specifically in Medicare, have played in the crisis.

Monetary

News                                                                                                                             
Market Watch | ECB lends $641 billion to European banks
The European Central Bank on Wednesday attempted to send a strong signal to financial markets by offering to loan $641 billion to 523 euro-area banks in a massive three-year funding operation.

Econ Comments                                                                                                             
Forbes | Why The Fed Can't Be Counted On To Save The Economy
Over the years, the Fed has been directed to achieve more and more conflicting priorities, including economic growth, price stability, interest-rate stability, financial market stability and exchange‑rate stability as well as government funding and full employment.
Reuters | Fed up with Bernanke
Guaranteeing cheap money is a Keynesian way of restoring health to an economy in recession, though Keynes himself was aware that low interest rates do not automatically lead to jobs.

Blogs                                                                                                                             
Econlog | Eurobanking
What you have in Europe, even more than in the U.S., are banks that have grown much too large, using these dangerous leverage techniques.
Econlog | Robert Hetzel on the Liquidity Trap
The institutional fact that makes a liquidity trap an irrelevant academic construct is the unlimited ability of the central bank to create money.

Taxes

News                                                                                                                             
Washington Times | LAMBRO: Reid’s legislative trap
Senate leader intends to blame GOP for payroll-tax hike.
Politico | Payroll tax cut down to who blinks first
The hardened positions suggest the impasse will stretch on for at least a few more days — and possibly even into the new year, when American paychecks will shrink by 2 percent if there’s no deal.

Econ Comments                                                                                                             
CNN: Money | Payroll tax deadlock could hobble economy
Most of the economists surveyed worry that raising the tax bite on most workers by up to $2,000 will put a crimp in spending in the new year and will be a drag on the economy.
WSJ | Want Growth? Try Stable Tax Policy
The payroll tax cut is one of 84 tax provisions expiring this year, 10 times as many as expired in 1999.

Blogs                                                                                                                             
WSJ: Real Time Economics | Vital Signs: Slower Growth in State Tax Revenue
State tax revenue has slowed its rate of growth. In the third quarter, states saw their overall tax revenue increase 5.6% from the same period a year ago.

Employment

News                                                                                                                             
Politico | Lack of immigrants could hurt growth
Congress could be hampering economic growth by moving slowly on immigration reform.
Investors.com | China Is Not The Source Of Our Jobs Problem
In 2010, total imports were about 16 percent of U.S. gross domestic product, and of that, 2.5% came from China.

Blogs                                                                                                                             
WSJ: Real Time Economics | Jobless Rates Fall in 43 States
Nationally, the unemployment rate declined to 8.6% last month from 9% in October. Nineteen states and Washington have rates higher than the national average. Just three states — New York, Rhode Island and Wyoming — reported increases in their unemployment rates, while four — Hawaii, New Jersey, Indiana and Oklahoma — were unchanged.

Budget

News                                                                                                                             
Market Watch | Europeans at doorway to fiscal discipline
The European Union debt crisis is coming to a head. At a recent summit, EU members took a major step toward closer integration. Britain vetoed a proposed treaty, but a plan for tougher government budget rules could be implemented through an agreement by the other 26 EU countries.

Econ Comments                                                                                                             
AEI | AEI 2011: Building a better budget
In the last two weeks of this year, the AEI 2011 series will highlight the institute's work that has made an impact, made a difference and made headlines over the past year.

Blogs                                                                                                                             
Cato @ Liberty | Sen. Coburn’s 2011 Wastebook
Yes, the money involved here amounts to pocket change in comparison to the $3.7 trillion the federal government spent last year. But as Coburn asks in the introduction, “Do these initiatives match your understanding of the role of the federal government as outlined by the Enumerated Powers of the U.S. Constitution?”
Econlog | Thomas Sargent on Government Default
How should you judge this decision not to bail out? If the feds had bailed them out, would you have had these balanced-budget amendments? Also, wouldn't you have set up incentives for future profligacy at the state government level and, therefore, future bailouts? Also, wouldn't the feds, because they were bailing out, have exercised stronger control of the states?
Coordination Problem | What's an $800 Billion Stimulus Worth?
Burton Abrams argues that it is worth negative $475 billion.

Tuesday, December 20, 2011

General Economics

News                                                                                                                             
CNN: Money | Ohio set to see oil boom thanks to fracking
Thanks to controversial new drilling technology, the state that once produced a third of the nation's crude and was the birthplace of John D. Rockefeller's mighty Standard Oil could once again be a significant source of domestic supply.
Bloomberg | U.S. Housing Starts Jump 9.3%, to Highest in Year
Builders broke ground in November on more houses than at any time in the past 19 months, led by a surge in multifamily units, signaling the market is stabilizing heading into 2012.
Bloomberg | German Business Confidence Unexpectedly Rises
German business confidence unexpectedly rose for a second month in December as two economic institutes predicted Europe’s biggest economy will stave off the debt crisis and avoid a recession in 2012.
Market Watch | Home-builder confidence hits 19-mo. High
The National Association of Home Builders/Wells Fargo housing market index rose to 21 in December from 19 in November, marking the third monthly rise in a row.

Econ Comments                                                                                                             
Washington Times | MURRAY AND BIER: Create wealth, not jobs
Keystone XL pipeline would boost prosperity, not government.
WSJ | Beware the Global 'Equity Gap'
McKinsey projects a growing imbalance between the amount of stocks that investors will want to hold and what companies will need to fund growth.
AEI | AEI 2011: Dissecting the financial crisis
In the last two weeks of this year, the AEI 2011 series will highlight the institute's work that has made an impact, made a difference and made headlines over the past year.
Bloomberg | Invention Is the Mother of Economic Growth: Nathan Myhrvold
One reason “dismal science” aptly describes economics is that it so often winds up in a zero-sum trade-off of diminishing returns. That gets depressing when the global economy is in a sorry state, as it is now.
Barron's | Buckle Up!
Wall Street strategists see U.S. stocks rising 12% next year, but most of the gains will come in the second half. Europe's response to its problems will call the tune. The case for big dividend payers.

Blogs                                                                                                                             
Cato @ Liberty | House Transparency Slated to Improve
Last Friday, the House Administration Committee adopted standards that “require all House legislative documents be published electronically in an open, searchable format on one centralized website.”
Heritage Foundation | Mr. President, There’s Bipartisan Support for Keystone XL
The Keystone XL pipeline, which would bring 700,000 barrels of oil per day from Canada to refineries in Texas and give a major boost to the U.S. economy, is the hot-button issue when it comes to the payroll tax cut package.
Café Hayek | A Huge Negative Externality
Robert Samuelson highlights a significant danger of Keynesian economics – namely, it lends a patina of scientific legitimacy to the “political bias … to favor short-term stimulus (by lowering taxes and raising spending), which is popular, and to ignore long-term deficits.

Reports                                                                                                                         
Mercatus Center | Spending Surge for Seniors: Medicare and Social Security Total 50 Percent of Budget by 2030
The growing number of beneficiaries due to the aging of the baby-boom generation will cause scheduled spending to surge. If current Social Security and Medicare policies continue without change, large deficits will undoubtedly emerge in the next decade and will grow even larger in subsequent decades.

Health Care

News                                                                                                                             
NY Times | Supreme Court to Hear Health Care Case in Late March
The Supreme Court announced on Monday that it would devote three days in late March to hearing arguments in challenges to the 2010 health care overhaul law. A decision in the case is expected by the end of June.
National Journal | Feds Face Challenges in Launching Health Exchange
With many states unwilling or unable to get insurance exchanges operational by the health law deadline of Jan. 1, 2014, pressure is growing on the federal government to do the job for them.

Blogs                                                                                                                             
Heritage Foundation | Obamacare Set for Oral Argument
Today, the Supreme Court released the oral argument schedule for the consolidated Obamacare challenges. The Court will hear oral argument on March 26, 27 and 28, 2012, with a nearly unprecedented amount of time allotted for argument.

Monetary

News                                                                                                                             
CNN: Money | Eurozone pledges €150 billion to IMF
European finance ministers announced plans for euro area governments to funnel €150 billion into the International Monetary Fund, according to statement issued Monday following a lengthy conference call.
Bloomberg | Republican Lawmaker Wants More Fed Disclosure, Inflation Focus
Representative Kevin Brady, the top Republican on the Joint Economic Committee, is drafting legislation that would focus the Federal Reserve on a single mandate for price stability, require more transparency and shift control over interest rates away from Washington.

Econ Comments                                                                                                             
CNBC | Euro Break-Up 'Unthinkable': ECB Vice-President
It’s still absurd and unthinkable in many senses of the word,” Constâncio said. "For people who really understand what it means to have a monetary union, it’s really unmanageable and unthinkable.”

Blogs                                                                                                                             
Calculated Risk | ECB Warns on Risks
The European Central Bank warned Monday of a perilous year ahead as the sovereign debt crisis collides with slower economic growth and a dearth of market financing for banks.

Reports                                                                                                                         
NBER | Sovereign CDS and Bond Pricing Dynamics in the Euro-area
This analysis tests the price discovery relationship between sovereign CDS premia and bond yield spreads on the same reference entity. The theoretical no-arbitrage relationship between the two credit spreads is confronted with daily data from six Euro-area countries over the period 2004-2011.

Taxes

News                                                                                                                             
CNN: Money | Payroll tax: Congress on vexing path
Once again, Congress is going down to the wire on a "must-pass" bill that lawmakers have been debating for months. The centerpiece of this one -- the soon-to-expire payroll tax cut -- affects more than 160 million people.
National Journal | QUICK TAKE: Senate Payroll Tax Provision Tough to Implement: Think Tank
The Senate bill orders that wages above $18,350 in the first two months of the year be subject to the standard 6.2 percent payroll tax. The $18,350 figure is the two-month pro-rated amount of the $110,100 limit on exposure to payroll taxes in 2012. The Senate made this move to prevent the wealthiest income earners from also receiving the payroll tax cut.

Econ Comments                                                                                                             
WSJ | Liberals Love the 1%
A lesson in big business tax favoritism in Illinois.

Blogs                                                                                                                             
Minyanville | Decoding the Payroll Tax Cut: How Well Does It Work?
Economists say allowing the cut to expire could have serious consequences for the still fragile economy.

Employment

News                                                                                                                             
Fox News | Report: States Have Cut Thousands of Government Jobs Since Recession
State governments across the country have cut more than 80,000 jobs since the beginning of the recession, reflecting steep drops in tax revenue and providing a drag on the economies in many parts of the country.

Econ Comments                                                                                                             
Washington Times | RAHN: Government spending jobs myth
Facts show Keynesian model is wrong.

Budget

Econ Comments                                                                                                             
Politico | Easy deficit trim: Ax the dollar bill
The government’s own watchdog, the nonpartisan Government Accountability Office, has long advocated the elimination of the dollar bill. Its most recent report in March estimated that switching from a $1 bill to a $1 coin would save at least $5.5 billion over 30 years.

Blogs                                                                                                                             
Econlog | Fiscal Policy: A Counterexample for Krugman
The result of years of cuts in government spending was that, as a percent of GDP, federal spending on programs fell from a high of 17.5 percent in 1992-93 to 11.3 percent in 2000-01.
Coordination Problem | e Said It Before, and I Will Say It Again -- Everyone Please Read Buchanan and Wagner To Clarify What Is Going On
I would interpret this argument slightly different than the conventional wisdom --- Keynesianism is not a panacea because Keynesianism has dominated public policy making for half a century and has left us in such a state of public debt.

Monday, December 19, 2011

General Economics

News                                                                                                                             
Market Watch | No holiday gifts likely for U.S. economy
Housing market, European crisis remain drags as 2012 approaches.
Bloomberg | European Ministers Seek $261B in IMF Crisis Funds
European finance ministers sought to meet a self-imposed deadline for drawing additional aid to the debt crisis and to form new budget rules as investor confidence that a comprehensive solution is achievable wanes.
CNBC | Housing Recovery Held Back by Web of Program Roadblocks
Three years after the foreclosure crisis began, the process to apply for a loan modification remains a bureaucratic nightmare that is complicating the housing recovery and could dull the impact of any Obama administration initiatives in the works.
Politico | How long can Obama delay Keystone XL pipeline call?
If Republicans get their way, President Barack Obama, right around Valentine’s Day, could have to weigh in for the second time in about three months on permitting the Keystone XL pipeline that divides his environmental and labor bases.
CNN: Money | Students face squeeze in Pell Grants
Thousands of college students may soon feel a financial pinch and another 100,000 may not be able to complete degrees after Congress pushed ahead with changes to federal student aid, education experts said.

Econ Comments                                                                                                             
WSJ | Capitalism and the Right to Rise
In freedom lies the risk of failure. But in statism lies the certainty of stagnation.
CNN: Money | It's time for economic theory to evolve
We need an economic theory that is more relevant to a modern capitalist economy, one that embraces uncertainty and disequilibrium.
WSJ | The EPA's Fracking Scare
Breaking down the facts in that Wyoming drinking water study.
NY Times | Will China Break?
I’ve been reluctant to weigh in on the Chinese situation, in part because it’s so hard to know what’s really happening. All economic statistics are best seen as a peculiarly boring form of science fiction, but China’s numbers are more fictional than most.
AEI | The flaws of the WTO
While the addition of Russia to the ranks of the WTO is a step forward, the finalization of the Russian bid for membership underscores yet again the fundamental flaws in the globalized, multilateral approach to free trade currently institutionalized in the WTO.
Barron's | Why Has the Recovery Been So Slow?
The pace of post-recession recovery is the slowest the U.S. has seen in more than 40 years, and the housing crisis alone doesn't explain why.

Blogs                                                                                                                             
Calculated Risk | NAHB Builder Confidence index increases in December
The National Association of Home Builders (NAHB) reports the housing market index (HMI) increased in December to 21 from 19 in November. Any number under 50 indicates that more builders view sales conditions as poor than good.
Calculated Risk | Ten Economic Questions for 2012
These are still important questions for 2012, so once again I'll try to add some thoughts on these questions - and a few predictions - before the end of year.
Source | An Institutional Check on Financial Regulators?
I think that independent auditors may be the best modern hope for reconstituting the concept of checks and balances.
Heritage Foundation | ‘You’re On Your Own Economics’ Is an Ironic Straw Man
Contrary to the President’s straw-man characterizations, the free market advocated by most conservatives isn’t a free-for-all. It requires the rule of law, the enforcement of contracts, and protection against fraud, corruption, and criminal activity. In other words, the free market relies on adherence to an agreed set of rules—the very thing Obama accuses it of subverting.
Business Insider | Why The European Debt Crisis Might Actually Be Over…
Did the ECB pull off a backdoor bailout of the various governments by making it super-cheap for banks to borrow money, with which they can then turn around and buy sovereign debt at juicy yields?
Heritage Foundation | Keynesians Should Listen to Keynes
If one accepts Keynes’s notion of “animal spirits”—the confidence that inspires businesses to increase investment—as most commentators seem to, how could one then deny Keynes’s notion that too much governmental tinkering weakens that confidence?

Reports                                                                                                                         
CBO | Troubled Asset Relief Program
In October 2008, the Emergency Economic Stabilization Act of 2008 (Division A of Public Law 110-343) established the Troubled Asset Relief Program (TARP) to enable the Department of the Treasury to promote stability in financial markets through the purchase and guarantee of "troubled assets." Section 202 of that legislation requires the Office of Management and Budget (OMB) to submit semiannual reports on the costs of the Treasury’s purchases and guarantees of troubled assets.
RCM | How Europe Will Impact the Global Markets - Part I
The European debt crisis is the single most important driver of the global capital markets and will continue to be so well into next year. While observers have their favorite proposals how the crisis can be addressed and closure finally brought to the crisis, which is extending into its third year, most do not seem politically realistic.
RCm: Wells Fargo | RCm: Wells Fargo Weekly Economic & Financial Commentary
The busy week of economic releases continued to show an economy improving but at a moderate pace. Retail sales posted a disappointing increase of 0.2 percent in November following gains of 0.6 percent in October and 1.3 percent in September. However, spending rose across most categories typically associated with the holiday season. Electronics rose 2.1 percent in November likely reflecting sales of tablet computers and smart phones.

Health Care

News                                                                                                                             
National Journal | HHS Says States Can Decide Which Health Benefits Are 'Essential'
The Department of Health and Human Services has decided to let the states determine what package of health benefits should be considered "essential" for insurers to provide on state exchanges established under health reform.

Econ Comments                                                                                                             
WSJ | Why Mandated Health Insurance Is Unfair
There's an easier way to solve the 'free-rider' problem.

Blogs                                                                                                                             
Heritage Foundation | Ryan-Wyden: The Basic Ingredients of Structural Medicare Reform
Congressman Paul Ryan (R–WI) and Senator Ron Wyden (D–OR) have proposed a new bipartisan framework for structural Medicare reform. It continues the conversation with the American people on a solution to save the popular but financially troubled entitlement program.

Monetary

News                                                                                                                             
CNBC | ECB's Draghi Rules Out Money Printing
We are now more than four years into the financial crisis. What lessons would you draw so far? What has gone right and what has gone wrong?

Blogs                                                                                                                             
Minyanville | Central Bank Easing: The ECB's Stealth QE
How the ECB juiced the markets without anyone knowing.

Taxes

News                                                                                                                             
CNBC | Cost of Tax Cut: Another $17 a Month on Most Mortgages
Who is paying for the two-month extension of the payroll tax cut working its way through Congress? The cost is being dropped in the laps of most people who buy homes or refinance beginning next year.

Econ Comments                                                                                                             
RollCall | GOP Leaders Reject Payroll Tax Deal
A year-end deal to extend a popular tax cut and unemployment benefits collapsed in the span of 48 hours this weekend as the House GOP rejected en masse an agreement that had the blessing of Senate Minority Leader Mitch McConnell and most Senate Republicans.
Cato Institute | Soaking the Rich Won't Grow the Economy
We tried soaking the rich in the past, but the resulting revenue loss was more than we possibly could afford today.

Blogs                                                                                                                             
Atlantic: Megan McArdle | When It Comes to Taxes on the Poor, the Supply Siders Are Right
The question is what is the policy solution here. Means-tested transfers have to be phased out at some point, so there is no easy answer.
Minyanville | What New Tax and Regulatory Changes May Mean for You
All the squabbling in Washington may look like a political game, but the decisions -- or lack thereof -- made by Congress this year may have a significant impact on your bottom line in 2012.
Heritage Foundation | Millionaire Tax Would Punish the Biggest Job Creators
According to the new Treasury report, 50 percent of the income earned by businesses that pay their taxes through the individual income tax code and employ workers would be subject to the millionaire tax that Senator Reid demands to “pay for” an extension of the payroll tax holiday.
Minyanville | Examining the Economic Implications of the Payroll Tax Cut Extension
A temporary payroll tax cut now means a corresponding pay hike later, meaning the economy is scheduled to take a growth hit in the coming months.

Employment

News                                                                                                                             
CNN: Money | Europe's crisis could hurt U.S. jobs
The European crisis is a potential job-killer for the United States and could hit pensions and 401(k)s, Federal Reserve officials told Congress on Friday.

Econ Comments                                                                                                             
Washington Times | ROOT: Why Obama’s ‘new math’ is a jobs killer
President touts jobs created but forgets about many more lost.

Blogs                                                                                                                             
Calculated Risk | Inland Empire: Unemployment Rate now declining
I've been tracking the employment situation in California's Inland Empire since 2005. Now the employment situation is finally starting to improve a little.

Budget

Blogs                                                                                                                             
Heritage Foundation | Appropriations Tracker FY 2012 Shows Spending up, Not Down
The House budget, passed in April—a bold plan to put the government on a path to fiscal sanity—provided for $1.019 trillion in discretionary spending. It was the only real budget to pass either chamber of Congress and hence the only budget with any claim to legitimacy.
Calculated Risk | State Budget Cuts: Nearing the End?
There are more budget cuts coming in California, but the cuts may be nearing the end. The ongoing state and local budget cuts have been a significant drag on economic and employment growth for the last several years.