News
WSJ | Canada's GDP Expands 3.9%
Gross domestic product growth was marginally below the consensus call of 4%, and also undershot the Bank of Canada's 4.2% forecast.
USA Today | Economic problems stubbornly linger
Don't look now, but the economic recovery that barely exists in the eyes of many Americans is 2 years old.
Financial Times | US looks at takeover guidelines shake-up
The US justice department is considering a shake-up of the guidelines used in approving takeovers of US companies, pointing to a possible shift in antitrust policy under the Obama administration.
CNN: Money | Home prices: 'Double-dip' confirmed
Home prices hit another new low in the first quarter, down 5.1% from a year ago to levels not reached since 2002.
CNBC | Japan Recovery Takes Hold, But Debt Downgrade Looms
Japan's economy offered more signs of recovery from the deadly March earthquake on Tuesday, but Moody's rating agency warned both growth and government action may fall short of what is necessary to bring Tokyo's ballooning debt back under control.
Econ Comments
Newsweek | Austerity Works
In bemoaning the pain of fiscal responsibility, the Democrats show they still haven’t learned the lessons of Europe.
WSJ | More Weather Deaths? Wanna Bet?
Contrary to what many environmentalists would have us believe, Americans are increasingly less likely to be killed by severe weather.
NYT | Can I See Your License, Registration and C.P.U.?
Inescapably, computers will be playing an ever larger role in our lives. But exactly what tasks will they be allowed to perform, and how will we use government regulation to evaluate the risks associated with new technologies? These questions will be increasingly pressing as innovations strain the longstanding rules that regulate modern life.
WSJ | In Vino Veritas
P.J. O'Rourke with a modest proposal for a more honest politics.
Source | Check Out What GDP Growth Would Look Like If the Government Were Using The Right Inflation Numbers
The most recent real GDP number for Q1, was weak. If this were an ordinary recovery following a deep recession, the economy would likely be growing 5%-7%. This is why the recovery doesn't feel like a recovery.
Bloomberg | Ryan Says Rich Should Pay More as Sanders Defends Entitlements for Wealthy
Lawmakers who have spent years battling over taxing high- earning Americans are trading places when it comes to cutting their entitlements. Democrats say Social Security and Medicare have endured because they offer benefits to people of all incomes, and accuse Republicans of trying to kill the programs by stripping away their beneficiaries, beginning with the rich. Republicans say the fairest way to curb the deficit is to scale back the programs for those who need them least.
Blogs
NRO: The Corner | The Party of Doing Nothing
While Democrats disagree with Republicans about how to reform Medicare — as Bill Clinton says he does — they shouldn’t feel that they can just sit on their hands and do nothing. This is especially true in the face of the Trustees’ Report and its conclusion that, even in the best-case scenario, the ACA has failed to address Medicare funding issues.
Calculated Risk | Schedule for Week of May 29th
There will probably be a series of weak economic reports this week, including Case-Shiller house prices on Tuesday, the ISM manufacturing index on Wednesday, May vehicle sales also on Wednesday, and the May employment report on Friday.
Forbes | 5% Growth: Not Magical Unicorns, The Return of Gazelles
Advocates of robust economic growth are very used to being ridiculed by those who say it cannot be done. Reagan was ridiculed (“voodoo economics”) for his prescription of lower tax rates and a strong dollar. That growth recipe, when adopted despite the ridicule, propelled the Dow Jones Industrial Average from around 900 (no typo) to well over 10,000.
Heritage Foundation | The Unstimulated Obama Economy
The economic news that’s really sticking in the Old Gray Lady’s craw is revised data released last week that shows the economy’s growth stuck at 1.8 percent, slow consumer spending, stagnant wages, higher prices for gas and food, the poor housing market, flagging consumer confidence and a recent Labor Department report showing a higher-than-expected rise in claims for jobless benefits.
Cato@Liberty | How Fannie and Fed Caused the Crash
If you watched the HBO movie Too Big to Fail, you wouldn’t get much sense that government actions — easy money, the homeownership mania, HUD and Fannie’s push to lend to non-creditworthy borrowers — played a major role in the housing bubble and subsequent financial crisis. Sounds like this book would make good supplemental reading for viewers, along with Johan Norberg’s Financial Fiasco.
Reports
Cato Institute | Economic Self-Flagellation: How U.S. Antidumping Policy Subverts the National Export Initiative
In January 2010, President Obama announced a goal of doubling U.S. exports in five years. The "National Export Initiative" has since become the centerpiece of the administration's trade policy agenda.
Tuesday, May 31, 2011
Taxes
Blogs
ThinkMarkets | Confusion Masquerading as Science? Taxes and Spending
I am always amazed that when many economists give policy advice the sophistication and logical rigor that the discipline so values gets completely lost.
Reports
Tax Foundation | Louisiana Considers Adopting "Amazon" Tax on Out-of-State Online Sellers
While 21 states have considered "Amazon" laws in the past three years, only five have enacted them: Connecticut, Illinois, New York, North Carolina, and Rhode Island...
ThinkMarkets | Confusion Masquerading as Science? Taxes and Spending
I am always amazed that when many economists give policy advice the sophistication and logical rigor that the discipline so values gets completely lost.
Reports
Tax Foundation | Louisiana Considers Adopting "Amazon" Tax on Out-of-State Online Sellers
While 21 states have considered "Amazon" laws in the past three years, only five have enacted them: Connecticut, Illinois, New York, North Carolina, and Rhode Island...
Health Care
News
NYT | Medicare Plan for Payments Irks Hospitals
For the first time in history, Medicare will soon track spending on millions of individual beneficiaries, reward hospitals that hold down costs and penalize those whose patients prove most expensive.
Fiscal Times | Hospital Drug Shortages Rise
A growing shortage of medications for a host of illnesses — from cancer to cystic fibrosis to cardiac arrest — has hospitals scrambling for substitutes to avoid patient harm, and sometimes even delaying treatment.
National Journal | CBO Uncertain on Defunding Health Reform Law
A CBO analysis could not determine if withholding $5 billion to $10 billion needed over the next 10 years to implement the health law's programs such as insurance exchanges or assistance to states to expand Medicaid coverage would add to or subtract from the deficit.
Econ Comments
CNN: Money | GOP Medicare bet: There's a market for bold
Republican strategists have noticed that courage sells, even in blue states. Maybe the GOP should step up to the plate and acknowledge they want real reform for Medicare.
Washington Post | How the GOP could rescue Medicare reform
Conservatives should understand that much of the opposition to Medicare reform is conservative, at least in form. It is rooted in a fear of change and a resentment of meddling officials. A general distrust of politics extends to a distrust of politicians engaged in confusing reforms. In a choice between the status quo and major change, a center-right country generally will choose the status quo.
Blogs
NRO: The Corner | Medicare/MediScare Spending
Leaving the politics of this solution aside, even if we could implement the cuts, it doesn’t seem like a desirable solution. I assume that, under the current system, doctors are charging higher fees for services than they would if their patients were paying with their own money.
NYT | Medicare Plan for Payments Irks Hospitals
For the first time in history, Medicare will soon track spending on millions of individual beneficiaries, reward hospitals that hold down costs and penalize those whose patients prove most expensive.
Fiscal Times | Hospital Drug Shortages Rise
A growing shortage of medications for a host of illnesses — from cancer to cystic fibrosis to cardiac arrest — has hospitals scrambling for substitutes to avoid patient harm, and sometimes even delaying treatment.
National Journal | CBO Uncertain on Defunding Health Reform Law
A CBO analysis could not determine if withholding $5 billion to $10 billion needed over the next 10 years to implement the health law's programs such as insurance exchanges or assistance to states to expand Medicaid coverage would add to or subtract from the deficit.
Econ Comments
CNN: Money | GOP Medicare bet: There's a market for bold
Republican strategists have noticed that courage sells, even in blue states. Maybe the GOP should step up to the plate and acknowledge they want real reform for Medicare.
Washington Post | How the GOP could rescue Medicare reform
Conservatives should understand that much of the opposition to Medicare reform is conservative, at least in form. It is rooted in a fear of change and a resentment of meddling officials. A general distrust of politics extends to a distrust of politicians engaged in confusing reforms. In a choice between the status quo and major change, a center-right country generally will choose the status quo.
Blogs
NRO: The Corner | Medicare/MediScare Spending
Leaving the politics of this solution aside, even if we could implement the cuts, it doesn’t seem like a desirable solution. I assume that, under the current system, doctors are charging higher fees for services than they would if their patients were paying with their own money.
Monetary
News
Financial Times | New Zealand dollar hits record high
Higher global demand for food, particularly its meat and dairy products to helped exports outpace imports to the tune of NZ$1.11bn(US$908m) in April - a record monthly surplus, which nearly oubled market estimates of NZ$600m.
Bloomberg | Euro Advances to Three-Week High on Greek Aid-Deal Optimism; Yen Declines
The euro rose to a three-week high against the dollar on optimism European officials will approve additional assistance for Greece, reducing the potential losses for bondholders.
Financial Times | New Zealand dollar hits record high
Higher global demand for food, particularly its meat and dairy products to helped exports outpace imports to the tune of NZ$1.11bn(US$908m) in April - a record monthly surplus, which nearly oubled market estimates of NZ$600m.
Bloomberg | Euro Advances to Three-Week High on Greek Aid-Deal Optimism; Yen Declines
The euro rose to a three-week high against the dollar on optimism European officials will approve additional assistance for Greece, reducing the potential losses for bondholders.
Employment
Econ Comments
Washington Times | EDITORIAL: Unemployment reform
House to vote on easing 99-week benefit requirement.
Washington Times | GRAVES: Government: No. 1 job destroyer
Regulatory morass is choking economic growth and driving jobs overseas.
Blogs
WSJ | Less Income, More Layoffs
The GDP report showed nominal profits economywide jumped 8.5% in the year ended in the first quarter, while companies increased their nominal compensation to employees by just 3.7%.
Washington Times | EDITORIAL: Unemployment reform
House to vote on easing 99-week benefit requirement.
Washington Times | GRAVES: Government: No. 1 job destroyer
Regulatory morass is choking economic growth and driving jobs overseas.
Blogs
WSJ | Less Income, More Layoffs
The GDP report showed nominal profits economywide jumped 8.5% in the year ended in the first quarter, while companies increased their nominal compensation to employees by just 3.7%.
Budget
News
Bloomberg | No Love Lost for U.S. Debt as Bond Dealers Share Fewer Treasuries With Fed
Demand for government debt is increasing even as the central bank prepares to conclude its purchases, the size of the market has doubled to $9.1 trillion and Republicans in Congress spar with President Barack Obama over the nation’s debt ceiling.
National Journal | Where Are We With Appropriations?
...as anyone who works in Washington knows, having access to at least the formal documents legislators use in making appropriations decisions can be invaluable.
WSJ | Danger of Greek Contagion Climbs
Investors have long expected Greece to default on its debts, but most were anticipating it would happen sometime next year. Now, skirmishes among European leaders last week have raised the prospect that a default could come as early as mid-July—not enough time for Europe's other debt-ridden economies to right themselves.
Econ Comments
Cato Institute | Debt Dilemma
By 2035, total federal spending could reach 34 percent of GDP, and climb to 42 percent by mid-century.
Washington Times | EDITORIAL: The Democrats' debt crisis
Despite debt limit, they have no plan for substantive reform.
Blogs
John Stossel's Take | What Caused The Debt?
The CBO predicted that the debt would be eliminated within a decade - as the green line shows in the chart below. That didn't happen, partly because economic growth was slower than expected (the yellow line in the chart below shows the impact of that) and partly because of tax cuts that the CBO says reduced government revenue (the blue line)...
Greg Mankiw's Blog | How to Fix the Long-Term Fiscal Problem
A menu of plans, courtesy of the Peterson Foundation.
Reports
Mercatus Center | The Debt Limit Debate
While the United States should not default on its debt, neither should Congress raise the debt ceiling without addressing the problem that created the debt: excessive spending.
Bloomberg | No Love Lost for U.S. Debt as Bond Dealers Share Fewer Treasuries With Fed
Demand for government debt is increasing even as the central bank prepares to conclude its purchases, the size of the market has doubled to $9.1 trillion and Republicans in Congress spar with President Barack Obama over the nation’s debt ceiling.
National Journal | Where Are We With Appropriations?
...as anyone who works in Washington knows, having access to at least the formal documents legislators use in making appropriations decisions can be invaluable.
WSJ | Danger of Greek Contagion Climbs
Investors have long expected Greece to default on its debts, but most were anticipating it would happen sometime next year. Now, skirmishes among European leaders last week have raised the prospect that a default could come as early as mid-July—not enough time for Europe's other debt-ridden economies to right themselves.
Econ Comments
Cato Institute | Debt Dilemma
By 2035, total federal spending could reach 34 percent of GDP, and climb to 42 percent by mid-century.
Washington Times | EDITORIAL: The Democrats' debt crisis
Despite debt limit, they have no plan for substantive reform.
Blogs
John Stossel's Take | What Caused The Debt?
The CBO predicted that the debt would be eliminated within a decade - as the green line shows in the chart below. That didn't happen, partly because economic growth was slower than expected (the yellow line in the chart below shows the impact of that) and partly because of tax cuts that the CBO says reduced government revenue (the blue line)...
Greg Mankiw's Blog | How to Fix the Long-Term Fiscal Problem
A menu of plans, courtesy of the Peterson Foundation.
Reports
Mercatus Center | The Debt Limit Debate
While the United States should not default on its debt, neither should Congress raise the debt ceiling without addressing the problem that created the debt: excessive spending.
Friday, May 27, 2011
General Economics
News
Fox News | Economies around the world are growing more slowly
From the United States to Europe and even booming China, the global economy is showing signs of strain. Most majore economies are expected to keep growing. But evidence is mounting that many aroung the world are struggling to expand as fast as they did last year.
CNN: Money | Internet economy: Bigger than Canada
A group of researchers is trying to put a value on the Internet's contribution to the global economy -- and they think it's larger than the entire economies of Canada or Spain.
Fox News | GOP repackages agenda
Top House Republicnas called for tax reform an easing of government regulations and increased domestic energy production on Thursday in what officials said was an attempt to show that spending cuts are not their sole emphasis for creating jobs.
WSJ | The 'Real' Truth About Consumer Spending
The Commerce Department reports Friday on consumer income and spending for April. Income is seen rising 0.4% with spending up 0.5% month on month. Both numbers are one-tenth of a percentage point below March gains. On the surface, that doesn't seem too bad.
National Journal | Corporate Profits Still Climbing
Despite slowing growth and Wall Street dip, U.S. companies enjoyed a record harvest in the first quarter.
WSJ | Mortgage Rate Falls to 2011 Low
Home-mortgage interest rates fell last week to the lowest point of 2011 amid signs of a slowing economy, according to the latest survey from Freddie Mac.
Bloomberg | Crude Heads for Weekly Gain; JPMorgan Sees OPEC Quota Increase
Crude rose as much as 0.8 percent after Group of Eight leaders said the world economy is gaining strength and as a weakening dollar boosted the appeal of commodities. Futures narrowed their gains after a report showed European confidence in the economy weakened for a third straight month in May.
Econ Comments
Bloomberg | Group of Eight Leaders Say Stronger Growth to Shift Focus to Cutting Debt
Europe vowed to fight its fiscal woes with “determination,” while President Barack Obama promised a “clear and credible” U.S. deficit-reduction strategy. Japan was allowed to put off savings measures until its economy rebounds from the March earthquake and tsunami.
Barron's | Fire Your Hedge Fund, Hire Your Congressman
House members outperform the stock market, though not as much as Senators, study finds. The ultimate insiders?
Bloomberg | Carter: Economic Stagnation Explained, at 30,000 Feet
The man in the aisle seat is trying to tell me why he refuses to hire anybody. His business is successful, he says, as the 737 cruises smoothly eastward. Demand for his product is up. But he still won’t hire.
Blogs
Cato@Liberty | Don’t Cut Red Tape, Shut Down the Factory
“Cutting government waste” is the mantra for those politicians who regard certain government programs as sacred cows. President Obama hopes to pay for a sizeable part of his health care overhaul by eliminating “waste, fraud, and abuse” in Medicare.
Ludwig von Mises Institute | Out of Business
The last few years as an executive in a manufacturing company gave me a frighteningly close look at the inner workings of regulators in our government. Maybe I'm just naïve, but what I discovered was shocking.
Fox News | Economies around the world are growing more slowly
From the United States to Europe and even booming China, the global economy is showing signs of strain. Most majore economies are expected to keep growing. But evidence is mounting that many aroung the world are struggling to expand as fast as they did last year.
CNN: Money | Internet economy: Bigger than Canada
A group of researchers is trying to put a value on the Internet's contribution to the global economy -- and they think it's larger than the entire economies of Canada or Spain.
Fox News | GOP repackages agenda
Top House Republicnas called for tax reform an easing of government regulations and increased domestic energy production on Thursday in what officials said was an attempt to show that spending cuts are not their sole emphasis for creating jobs.
WSJ | The 'Real' Truth About Consumer Spending
The Commerce Department reports Friday on consumer income and spending for April. Income is seen rising 0.4% with spending up 0.5% month on month. Both numbers are one-tenth of a percentage point below March gains. On the surface, that doesn't seem too bad.
National Journal | Corporate Profits Still Climbing
Despite slowing growth and Wall Street dip, U.S. companies enjoyed a record harvest in the first quarter.
WSJ | Mortgage Rate Falls to 2011 Low
Home-mortgage interest rates fell last week to the lowest point of 2011 amid signs of a slowing economy, according to the latest survey from Freddie Mac.
Bloomberg | Crude Heads for Weekly Gain; JPMorgan Sees OPEC Quota Increase
Crude rose as much as 0.8 percent after Group of Eight leaders said the world economy is gaining strength and as a weakening dollar boosted the appeal of commodities. Futures narrowed their gains after a report showed European confidence in the economy weakened for a third straight month in May.
Econ Comments
Bloomberg | Group of Eight Leaders Say Stronger Growth to Shift Focus to Cutting Debt
Europe vowed to fight its fiscal woes with “determination,” while President Barack Obama promised a “clear and credible” U.S. deficit-reduction strategy. Japan was allowed to put off savings measures until its economy rebounds from the March earthquake and tsunami.
Barron's | Fire Your Hedge Fund, Hire Your Congressman
House members outperform the stock market, though not as much as Senators, study finds. The ultimate insiders?
Bloomberg | Carter: Economic Stagnation Explained, at 30,000 Feet
The man in the aisle seat is trying to tell me why he refuses to hire anybody. His business is successful, he says, as the 737 cruises smoothly eastward. Demand for his product is up. But he still won’t hire.
Blogs
Cato@Liberty | Don’t Cut Red Tape, Shut Down the Factory
“Cutting government waste” is the mantra for those politicians who regard certain government programs as sacred cows. President Obama hopes to pay for a sizeable part of his health care overhaul by eliminating “waste, fraud, and abuse” in Medicare.
Ludwig von Mises Institute | Out of Business
The last few years as an executive in a manufacturing company gave me a frighteningly close look at the inner workings of regulators in our government. Maybe I'm just naïve, but what I discovered was shocking.
Taxes
News
WSJ | Cuomo's Tax Cap
The New York Democrat gets a harder limit than Chris Christie.
Econ Comments
Daily Caller | Raising taxes on the energy industry would be a mistake
A better solution is overhauling our federal tax laws to encourage domestic energy production, eliminate loopholes, and provide a fairer tax structure so American companies can compete with their foreign rivals.
Blogs
Heritage Foundation | Tax Hikes Are Not Government Savings
To review: Savings come from spending less, not taxing more. Higher taxes cannot be savings for the government, because the income wasn’t the government’s to begin with.
Atlantic: McArdle | Once Again, We Cannot Pay For Social Security By Ending the Bush Tax Cuts on High Earners
...the government does not borrow and save like normal people--its constraints are different. The closest it can come to saving is to pay off debt.
WSJ | Cuomo's Tax Cap
The New York Democrat gets a harder limit than Chris Christie.
Econ Comments
Daily Caller | Raising taxes on the energy industry would be a mistake
A better solution is overhauling our federal tax laws to encourage domestic energy production, eliminate loopholes, and provide a fairer tax structure so American companies can compete with their foreign rivals.
Blogs
Heritage Foundation | Tax Hikes Are Not Government Savings
To review: Savings come from spending less, not taxing more. Higher taxes cannot be savings for the government, because the income wasn’t the government’s to begin with.
Atlantic: McArdle | Once Again, We Cannot Pay For Social Security By Ending the Bush Tax Cuts on High Earners
...the government does not borrow and save like normal people--its constraints are different. The closest it can come to saving is to pay off debt.
Health Care
News
National Journal | Democrats Cling to Health Care Law for Savings
Democrats have their on-the-record proof of what everyone knew—that House Budget Committee Chairman Paul Ryan’s plan to turn Medicare into a subsidy program would not pass in this Congress. But they still have to face the question of whether they will, in talks on reducing the deficit and raising the government's debt ceiling, approve any cuts to Medicare.
Econ Comments
Washington Times | LAMBRO: Medicare demagoguery backfire
Public won’t hear Democratic attacks until unemployment is fixed.
Washington Times | MILLER: Democrats’ Mediscare is bankrupt
It’s time for the GOP to hit back against empty attacks.
Blogs
Heritage Foundation | New Study Shows Higher Health Care Costs under Obamacare
Despite President Obama’s assurances that his massive overhaul of the health care system would control health care costs and allow Americans to keep their current coverage, the outlook indicates otherwise. PricewaterhouseCoopers (PWC) recently released its annual report on medical cost trends for 2012, and it is revealing.
National Journal | Democrats Cling to Health Care Law for Savings
Democrats have their on-the-record proof of what everyone knew—that House Budget Committee Chairman Paul Ryan’s plan to turn Medicare into a subsidy program would not pass in this Congress. But they still have to face the question of whether they will, in talks on reducing the deficit and raising the government's debt ceiling, approve any cuts to Medicare.
Econ Comments
Washington Times | LAMBRO: Medicare demagoguery backfire
Public won’t hear Democratic attacks until unemployment is fixed.
Washington Times | MILLER: Democrats’ Mediscare is bankrupt
It’s time for the GOP to hit back against empty attacks.
Blogs
Heritage Foundation | New Study Shows Higher Health Care Costs under Obamacare
Despite President Obama’s assurances that his massive overhaul of the health care system would control health care costs and allow Americans to keep their current coverage, the outlook indicates otherwise. PricewaterhouseCoopers (PWC) recently released its annual report on medical cost trends for 2012, and it is revealing.
Monetary
Econ Comments
Financial Times | Now is not the time to raise interest rates
The UK's economic performance over the past year is no surprise. When you tighten fiscal policy significantly after a major financial crisis, both history and mainstream economics would tell you to expect what we have now: no growth in broad money or credit, persistently high interest spreads for small businesses and households.
Financial Times | Now is not the time to raise interest rates
The UK's economic performance over the past year is no surprise. When you tighten fiscal policy significantly after a major financial crisis, both history and mainstream economics would tell you to expect what we have now: no growth in broad money or credit, persistently high interest spreads for small businesses and households.
Budget
News
MarketWatch | China banks to stress-test gov’t debt, other risks
Chinese regulators have asked six major banks this week to submit new data on lending risks that place emphasis on their exposure to government-backed infrastructure projects and property-market lending, according to a report Friday in the state-run China Daily.
CNN Money | Texas budget cuts not as big as feared
Texas legislative leaders agreed Thursday to a budget that cuts $15 billion in spending over the next two years.
Econ Comments
Washington Post | The Chained CPI, an easy way to save money
GETTING THE DEBT under control will require some difficult choices, but not every step must be painful.
WSJ | Who's Winning the Budget War?
Republicans are forcing Democrats to acknowledge that voters want spending reform.
Blogs
Atlantic: McArdle | The Budget Needs to Leave Room for Emergencies
...Americans increasingly seem to think about the budget the way that chronic overspenders think about their purchases...
Reports
CRS | Sovereign Debt in Advanced Economies: Overview and Issues for Congress
Congress is currently debating proposals to reduce the federal debt. Multilaterally, Congress could urge the Administration to coordinate fiscal policies to avoid simultaneous austerity reforms that undermine the economic recovery.
MarketWatch | China banks to stress-test gov’t debt, other risks
Chinese regulators have asked six major banks this week to submit new data on lending risks that place emphasis on their exposure to government-backed infrastructure projects and property-market lending, according to a report Friday in the state-run China Daily.
CNN Money | Texas budget cuts not as big as feared
Texas legislative leaders agreed Thursday to a budget that cuts $15 billion in spending over the next two years.
Econ Comments
Washington Post | The Chained CPI, an easy way to save money
GETTING THE DEBT under control will require some difficult choices, but not every step must be painful.
WSJ | Who's Winning the Budget War?
Republicans are forcing Democrats to acknowledge that voters want spending reform.
Blogs
Atlantic: McArdle | The Budget Needs to Leave Room for Emergencies
...Americans increasingly seem to think about the budget the way that chronic overspenders think about their purchases...
Reports
CRS | Sovereign Debt in Advanced Economies: Overview and Issues for Congress
Congress is currently debating proposals to reduce the federal debt. Multilaterally, Congress could urge the Administration to coordinate fiscal policies to avoid simultaneous austerity reforms that undermine the economic recovery.
Thursday, May 26, 2011
General Economics
News
Bloomberg | White House Cuts Red Tape Tangling Car Fumes, Spilled Milk
The White House announced today that 30 U.S. agencies are seeking to repeal or modify regulations in an effort to reduce reporting requirements and save businesses and individuals billions of dollars in compliance costs.
WSJ | U.S. Regulators Aim to Extend Reach
Agencies Weigh Oversight of Certain Financial Transactions by Foreign Central Banks, Sovereign Funds.
Bloomberg | U.S. Economy Expanded 1.8% in First Quarter, Less Than Economists Forecast
The U.S. economy grew at a 1.8 percent annual rate in the first quarter, less than forecast, reflecting a smaller gain in consumer spending than previously calculated.
Market Watch | Orders for durable goods fall 3.6% in April
U.S. orders for durable goods fell sharply in April, mainly because of lower demand for aircraft and autos, the government reported Wednesday.
CNBC | Sales of Distressed US Homes Fall in First Quarter
Sales of homes owned by banks or in some stage of foreclosure totaled 158,434, down 16.5% from the fourth quarter and 35.8% from the first quarter of 2010.
WSJ | U.S. Falls Behind in Stock Listings
Executives from LinkedIn Corp., reveling in their enormously successful initial public offering last Thursday, rang the New York Stock Exchange's opening bell. Big money, big smiles, the kind of moment that made the NYSE the Big Board.
Washington Times | House members in the know score ‘abnormal’ stock profits, study says
It’s no secret that members of Congress qualify as political insiders, but a new report strongly suggests that they also may be insiders when it comes to trading stocks.
Econ Comments
Market Watch | Ex-Fed insider: Oil runup partly bank’s fault
former high-ranking Federal Reserve official told Congress on Wednesday that higher oil prices and rising inflation are “partly a predictable byproduct” of the bank’s effort to goose the U.S. economy.
CNN: Money | End Big Oil's tax breaks now
It's time to truly level the playing field and give all forms of energy a chance to compete.
Market Watch | G-8 leaders to discuss economy, Arab spring
Obama to hold bilateral meetings with leaders of Japan, Russia.
Cato@Liberty | Transportation: From the Top Down or Bottom Up?
Should transportation be funded and planned from the top down or bottom up? Top-down advocates, such as the Brookings Institution's Robert Puentes argue that only central planners can have a "clear-cut vision for transportation" that will allow them to target spending "to make sure all those billions of dollars help achieve our economic and environmental goals."
National Journal | Alexander Says He'd Support Cutting Oil, Wind Subsidies
Senate GOP Conference Chairman Lamar Alexander of Tennessee would support cutting a variety of subsidies, ranging from wind to oil, while putting that money toward energy research and deficit reduction.
RCM | Let's Leave Our Roads to the States
As Americans take to the roads on Memorial Day weekend, almost all are blissfully ignorant that Congress must pass a highway bill by September 30, when authorization for the Highway Trust Fund expires.
Washington Times | FRANS: Too many rules could mean too few votes
Americans send White House warning about over regulation.
Blogs
The Economist | BRICmanship
I must confess to feeling a bit disappointed with the BRICs this morning. Here I was thinking they were poised to run the world and it turns out they can’t even stop the French running the IMF. At this point, it’s no good them railing against unwritten conventions. It’s time to start rallying behind a flesh-and-blood candidate.
WSJ | The Generation Gap Widens in the South and West
New data out Thursday from the Census Bureau show that every state saw its population of individuals 45 and older grow during the past decade, as the baby boomers age.
Heritage Foundation | Americans Fear Government Regulations Are Choking The Economy
What’s the monster under the bed keeping Americans up at night? Government regulations. According to a new poll, most voters say that too many federal government regulations are more of an economic threat than too few.many federal government regulations are more of an economic threat than too few.
Calculated Risk | Vehicle Miles Driven decreased 1.4% in March compared to March 2010
The Department of Transportation (DOT) reported that vehicle miles driven in March were down 1.4% compared to March 2010:
Reports
CBO | Analysis of Amendment H.R. 1229
Your amendment to H.R. 1229 would change a portion of the liability scheme established by the Oil Pollution Act of 1990 (OPA) for the owners and operators of oil and gas drilling platforms that operate in the coastal waters of the United States. Specifically, the amendment would make those owners and operators subject to unlimited liability for any damages caused by an oil spill resulting from offshore platforms.
Mercatus Center | Transparency, Transition, and Taxpayer Protection: More Steps to End the GSE Bailout
Chairman Garrett, Ranking Member Waters, and distinguished members of the Subcommittee, thank you for inviting me to testify today. I have been asked to offer opinions on “Transparency, Transition and Taxpayer Protection: More Steps to End the GSE Bailout.”
CBO | Estimated Impact of the American Recovery and Reinvestment Act on Employment and Economic Output from January 2011 Through March 2011
The American Recovery and Reinvestment Act of 2009 (ARRA) contains provisions that are intended to boost economic activity and employment in the United States. Section 1512(e) of the law requires the Congressional Budget Office (CBO) to comment on reports filed by recipients of ARRA funding that detail the number of jobs funded through their activities. This CBO report fulfills that requirement.
Bloomberg | White House Cuts Red Tape Tangling Car Fumes, Spilled Milk
The White House announced today that 30 U.S. agencies are seeking to repeal or modify regulations in an effort to reduce reporting requirements and save businesses and individuals billions of dollars in compliance costs.
WSJ | U.S. Regulators Aim to Extend Reach
Agencies Weigh Oversight of Certain Financial Transactions by Foreign Central Banks, Sovereign Funds.
Bloomberg | U.S. Economy Expanded 1.8% in First Quarter, Less Than Economists Forecast
The U.S. economy grew at a 1.8 percent annual rate in the first quarter, less than forecast, reflecting a smaller gain in consumer spending than previously calculated.
Market Watch | Orders for durable goods fall 3.6% in April
U.S. orders for durable goods fell sharply in April, mainly because of lower demand for aircraft and autos, the government reported Wednesday.
CNBC | Sales of Distressed US Homes Fall in First Quarter
Sales of homes owned by banks or in some stage of foreclosure totaled 158,434, down 16.5% from the fourth quarter and 35.8% from the first quarter of 2010.
WSJ | U.S. Falls Behind in Stock Listings
Executives from LinkedIn Corp., reveling in their enormously successful initial public offering last Thursday, rang the New York Stock Exchange's opening bell. Big money, big smiles, the kind of moment that made the NYSE the Big Board.
Washington Times | House members in the know score ‘abnormal’ stock profits, study says
It’s no secret that members of Congress qualify as political insiders, but a new report strongly suggests that they also may be insiders when it comes to trading stocks.
Econ Comments
Market Watch | Ex-Fed insider: Oil runup partly bank’s fault
former high-ranking Federal Reserve official told Congress on Wednesday that higher oil prices and rising inflation are “partly a predictable byproduct” of the bank’s effort to goose the U.S. economy.
CNN: Money | End Big Oil's tax breaks now
It's time to truly level the playing field and give all forms of energy a chance to compete.
Market Watch | G-8 leaders to discuss economy, Arab spring
Obama to hold bilateral meetings with leaders of Japan, Russia.
Cato@Liberty | Transportation: From the Top Down or Bottom Up?
Should transportation be funded and planned from the top down or bottom up? Top-down advocates, such as the Brookings Institution's Robert Puentes argue that only central planners can have a "clear-cut vision for transportation" that will allow them to target spending "to make sure all those billions of dollars help achieve our economic and environmental goals."
National Journal | Alexander Says He'd Support Cutting Oil, Wind Subsidies
Senate GOP Conference Chairman Lamar Alexander of Tennessee would support cutting a variety of subsidies, ranging from wind to oil, while putting that money toward energy research and deficit reduction.
RCM | Let's Leave Our Roads to the States
As Americans take to the roads on Memorial Day weekend, almost all are blissfully ignorant that Congress must pass a highway bill by September 30, when authorization for the Highway Trust Fund expires.
Washington Times | FRANS: Too many rules could mean too few votes
Americans send White House warning about over regulation.
Blogs
The Economist | BRICmanship
I must confess to feeling a bit disappointed with the BRICs this morning. Here I was thinking they were poised to run the world and it turns out they can’t even stop the French running the IMF. At this point, it’s no good them railing against unwritten conventions. It’s time to start rallying behind a flesh-and-blood candidate.
WSJ | The Generation Gap Widens in the South and West
New data out Thursday from the Census Bureau show that every state saw its population of individuals 45 and older grow during the past decade, as the baby boomers age.
Heritage Foundation | Americans Fear Government Regulations Are Choking The Economy
What’s the monster under the bed keeping Americans up at night? Government regulations. According to a new poll, most voters say that too many federal government regulations are more of an economic threat than too few.many federal government regulations are more of an economic threat than too few.
Calculated Risk | Vehicle Miles Driven decreased 1.4% in March compared to March 2010
The Department of Transportation (DOT) reported that vehicle miles driven in March were down 1.4% compared to March 2010:
Reports
CBO | Analysis of Amendment H.R. 1229
Your amendment to H.R. 1229 would change a portion of the liability scheme established by the Oil Pollution Act of 1990 (OPA) for the owners and operators of oil and gas drilling platforms that operate in the coastal waters of the United States. Specifically, the amendment would make those owners and operators subject to unlimited liability for any damages caused by an oil spill resulting from offshore platforms.
Mercatus Center | Transparency, Transition, and Taxpayer Protection: More Steps to End the GSE Bailout
Chairman Garrett, Ranking Member Waters, and distinguished members of the Subcommittee, thank you for inviting me to testify today. I have been asked to offer opinions on “Transparency, Transition and Taxpayer Protection: More Steps to End the GSE Bailout.”
CBO | Estimated Impact of the American Recovery and Reinvestment Act on Employment and Economic Output from January 2011 Through March 2011
The American Recovery and Reinvestment Act of 2009 (ARRA) contains provisions that are intended to boost economic activity and employment in the United States. Section 1512(e) of the law requires the Congressional Budget Office (CBO) to comment on reports filed by recipients of ARRA funding that detail the number of jobs funded through their activities. This CBO report fulfills that requirement.
Health Care
News
Politico | Is any Medicare reform plan political suicide?
Republicans recaptured the House last year running on a platform that accused Democrats of slashing Medicare in their health reform law. Then Tuesday's win by Democrat Kathy Hochul in a solidly Republican district was seen as a strong rebuke of the GOP budget that changes the basic structure of Medicare.
WSJ | No Retreat on Medicare
GOP Sticks With Controversial Revamp Plan After 'Wake-Up Call' of Election Upset.
Econ Comments
Washington Post | Wait! Paul Ryan has a point
Now that Paul Ryan’s Medicare plan has led Republicans off a political cliff, it’s time to expose the Achilles heel in the Democrats’ argument.
NY Times | Squandering Medicare’s Money
Much has been said about the growing gap between the program’s spending and revenues — a gap that will widen as baby boomers retire — but little attention has been focused on a problem staring us in the face: Medicare spends a fortune each year on procedures that have no proven benefit and should not be covered. Examples abound:
Washington Times | TURNER: White House waivers make a splash
Exemption for friends is crony capitalism at its worst.
Blogs
The Economist | Medicare has a lemons problem
There are many problems with Paul Ryan’s budget and his plans for Medicare, but for Democrats, one is paramount: it is unpopular. His proposal initially put Democrats on the back foot, but within days they took heart as press commentary and polls turned negative.
Heritage Foundation | Rep. Ryan and the Truth About Medicare
When it comes to the budget, there’s fact and fiction, distortions and reality. And today, the left has been lobbing lies about Chairman Paul Ryan’s (R-WI) House-passed Fiscal Year 2012 Budget – The Path to Prosperity – alleging that it puts Medicare at risk.
Politico | Is any Medicare reform plan political suicide?
Republicans recaptured the House last year running on a platform that accused Democrats of slashing Medicare in their health reform law. Then Tuesday's win by Democrat Kathy Hochul in a solidly Republican district was seen as a strong rebuke of the GOP budget that changes the basic structure of Medicare.
WSJ | No Retreat on Medicare
GOP Sticks With Controversial Revamp Plan After 'Wake-Up Call' of Election Upset.
Econ Comments
Washington Post | Wait! Paul Ryan has a point
Now that Paul Ryan’s Medicare plan has led Republicans off a political cliff, it’s time to expose the Achilles heel in the Democrats’ argument.
NY Times | Squandering Medicare’s Money
Much has been said about the growing gap between the program’s spending and revenues — a gap that will widen as baby boomers retire — but little attention has been focused on a problem staring us in the face: Medicare spends a fortune each year on procedures that have no proven benefit and should not be covered. Examples abound:
Washington Times | TURNER: White House waivers make a splash
Exemption for friends is crony capitalism at its worst.
Blogs
The Economist | Medicare has a lemons problem
There are many problems with Paul Ryan’s budget and his plans for Medicare, but for Democrats, one is paramount: it is unpopular. His proposal initially put Democrats on the back foot, but within days they took heart as press commentary and polls turned negative.
Heritage Foundation | Rep. Ryan and the Truth About Medicare
When it comes to the budget, there’s fact and fiction, distortions and reality. And today, the left has been lobbing lies about Chairman Paul Ryan’s (R-WI) House-passed Fiscal Year 2012 Budget – The Path to Prosperity – alleging that it puts Medicare at risk.
Taxes
News
National Journal | Tax-Credit Fraud Debate Opens Bigger Tax Fight
A House Ways and Means Committee panel debate on Wednesday over fraud and abuse of refundable tax credits like the first-time homebuyers and the earned-income tax credits further laid out evidence of the widening gap between House Democrats and Republicans over the future of the tax code.
Econ Comments
WSJ | A 62% Top Tax Rate?
Democrats have said they only intend to restore the tax rates that existed during the Clinton years. In reality they're proposing rates like those under President Carter.
Blogs
Heritage Foundation | The Graph That All Tax Hike Mystics Need to Grapple With
Growth in the first half of the decade following the Clinton tax hike was clearly subpar, and real wages actually fell.
National Journal | Tax-Credit Fraud Debate Opens Bigger Tax Fight
A House Ways and Means Committee panel debate on Wednesday over fraud and abuse of refundable tax credits like the first-time homebuyers and the earned-income tax credits further laid out evidence of the widening gap between House Democrats and Republicans over the future of the tax code.
Econ Comments
WSJ | A 62% Top Tax Rate?
Democrats have said they only intend to restore the tax rates that existed during the Clinton years. In reality they're proposing rates like those under President Carter.
Blogs
Heritage Foundation | The Graph That All Tax Hike Mystics Need to Grapple With
Growth in the first half of the decade following the Clinton tax hike was clearly subpar, and real wages actually fell.
Monetary
News
Bloomberg | Dollar Tumbles Against Yen, Euro After Weaker-Than-Forecast Economic Data
The common currency snapped four days of losses against the Swiss franc, climbing from a record low, after European Central Bank President Jean-Claude Trichet said policy makers are “carefully” monitoring inflation. The statement fueled bets Europe’s economy is strong enough to withstand increased interest rates.
Econ Comments
Minyanville | Will Germany Destroy the Euro?
Here's a trading strategy for those who think Germany will leave the Eurozone in the not-too-distant future.
AEI | Has the Financial Crisis Jeopardized the Fed's Independence?
Judging from the response to the Fed's three year battle against systemic financial collapse and the risk of deflation , it is difficult to escape the conclusion that financial crises and their aftermaths can pose greater challenges to central bank independence than the more traditional pain associated with combating inflation.
Blogs
Reason Foundation | A Perspective on Stagflation 2011
The Fed says inflation is under control, but the price at the pump and grocery check out is indicating otherwise. Why? Stand IERP fellow Ronald McKinnon suggests that ZIRP-the zero interest rate policy the Fed has held for the past two years-has caused inflation in emerging markets, impacting food prices:
Bloomberg | Dollar Tumbles Against Yen, Euro After Weaker-Than-Forecast Economic Data
The common currency snapped four days of losses against the Swiss franc, climbing from a record low, after European Central Bank President Jean-Claude Trichet said policy makers are “carefully” monitoring inflation. The statement fueled bets Europe’s economy is strong enough to withstand increased interest rates.
Econ Comments
Minyanville | Will Germany Destroy the Euro?
Here's a trading strategy for those who think Germany will leave the Eurozone in the not-too-distant future.
AEI | Has the Financial Crisis Jeopardized the Fed's Independence?
Judging from the response to the Fed's three year battle against systemic financial collapse and the risk of deflation , it is difficult to escape the conclusion that financial crises and their aftermaths can pose greater challenges to central bank independence than the more traditional pain associated with combating inflation.
Blogs
Reason Foundation | A Perspective on Stagflation 2011
The Fed says inflation is under control, but the price at the pump and grocery check out is indicating otherwise. Why? Stand IERP fellow Ronald McKinnon suggests that ZIRP-the zero interest rate policy the Fed has held for the past two years-has caused inflation in emerging markets, impacting food prices:
Budget
News
WSJ | Deficit Plans Show Wide Political Gap
The debate over how to reduce the deficit is truly a philosophical one about the size of government. There's more than one route to fiscal nirvana.
Bloomberg | Greece Is ‘Insolvent,’ Unlikely to Honor Debt, ECB Economist Issing Says
Greece will probably be unable to meet its obligations as the euro region’s most-indebted nation is insolvent, according to former European Central Bank Chief Economist Otmar Issing.
Econ Comments
FT | Forget the debt ceiling and focus on debt
On May 15, the US hit its “debt ceiling” of $14,300bn, covering publicly owned debt held by the Federal Reserve and government trust funds...
Blogs
Cato@Liberty | On the Politics of Deficits and Debt
What 2010 showed was that deficits and debt are dominating our politics like never before. Democrats haven’t come to grips with that.
WSJ: Real Time Economics | CBO Says Stimulus Boosted Growth, Will Add More to Deficit
The CBO report out Wednesday said the plan increased the number of people employed by between 1.2 million and 3.3 million, and lowered the unemployment rate by between 0.6 and 1.8 percentage points in the first quarter of 2011.
Political Calculations | The Hidden Cost of the United States' National Debt
At a sustained 40 point increase above the default-free risk level, we would estimate that the interest rate that investors require the U.S. government to pay on its 10-Year Treasury Bond is about 0.4% higher than it would otherwise be. Today's yields on a 10-Year Treasury of 3.15% would instead be about 2.75%, if not for the increased risk of default.
Reports
Heritage Foundation | The Heritage Foundation’s “Saving the American Dream” Plan Cuts Most Debt, Taxes & Federal Spending
Heritage’s report, “Saving the American Dream: Heritage’s Plan to Fix the Debt, Cut Spending, and Restore Prosperity,” lays out bold policy recommendations in Social Security, Medicare, Medicaid, health insurance, the tax code and federal spending.
WSJ | Deficit Plans Show Wide Political Gap
The debate over how to reduce the deficit is truly a philosophical one about the size of government. There's more than one route to fiscal nirvana.
Bloomberg | Greece Is ‘Insolvent,’ Unlikely to Honor Debt, ECB Economist Issing Says
Greece will probably be unable to meet its obligations as the euro region’s most-indebted nation is insolvent, according to former European Central Bank Chief Economist Otmar Issing.
Econ Comments
FT | Forget the debt ceiling and focus on debt
On May 15, the US hit its “debt ceiling” of $14,300bn, covering publicly owned debt held by the Federal Reserve and government trust funds...
Blogs
Cato@Liberty | On the Politics of Deficits and Debt
What 2010 showed was that deficits and debt are dominating our politics like never before. Democrats haven’t come to grips with that.
WSJ: Real Time Economics | CBO Says Stimulus Boosted Growth, Will Add More to Deficit
The CBO report out Wednesday said the plan increased the number of people employed by between 1.2 million and 3.3 million, and lowered the unemployment rate by between 0.6 and 1.8 percentage points in the first quarter of 2011.
Political Calculations | The Hidden Cost of the United States' National Debt
At a sustained 40 point increase above the default-free risk level, we would estimate that the interest rate that investors require the U.S. government to pay on its 10-Year Treasury Bond is about 0.4% higher than it would otherwise be. Today's yields on a 10-Year Treasury of 3.15% would instead be about 2.75%, if not for the increased risk of default.
Reports
Heritage Foundation | The Heritage Foundation’s “Saving the American Dream” Plan Cuts Most Debt, Taxes & Federal Spending
Heritage’s report, “Saving the American Dream: Heritage’s Plan to Fix the Debt, Cut Spending, and Restore Prosperity,” lays out bold policy recommendations in Social Security, Medicare, Medicaid, health insurance, the tax code and federal spending.
Employment
Blogs
WSJ: Real Time Economics | Comparing Wages Across the U.S.
Those working in the San Jose-San Francisco-Oakland, Calif., metro were the best paid. They earned 20% more than the average American worker last year.
Forbes: Unconventional Logic | The Sheer Idiocy of the Income Inequality Rhetoric
The Top 400 taxpayers are not the problem. Your own numbers show that they are paying more taxes, and a greater share of total taxes, than they were in what you consider to be “the good old days” of 91% tax rates.
WSJ: Real Time Economics | Comparing Wages Across the U.S.
Those working in the San Jose-San Francisco-Oakland, Calif., metro were the best paid. They earned 20% more than the average American worker last year.
Forbes: Unconventional Logic | The Sheer Idiocy of the Income Inequality Rhetoric
The Top 400 taxpayers are not the problem. Your own numbers show that they are paying more taxes, and a greater share of total taxes, than they were in what you consider to be “the good old days” of 91% tax rates.
Wednesday, May 25, 2011
JEC Life Sciences Hearing May 25, 2011
Congressman Brady, (R-TX) Vice Chairman of the Joint Economic Committee, provides his opening statement to the committee and witnesses on the importance of driving innovation and job growth through the Life Sciences Industry.
Senator Lee's Opening Remarks
Vice Chairman Brady Questions Witnesses
Congressman Mulvaney's Questions
Senator Lee's First Round of Questioning
Vice Chairman Brady's Second Round of Questions
General Economics
News
Bloomberg | Durable Goods Orders Fall the Most in 6 Months
Orders for U.S. durable goods dropped more than forecast in April, reflecting a slump in aircraft demand and disruptions in supplies of auto parts stemming from the earthquake in Japan.
CNN Money | Oil is going up! No wait, down! Up!
Goldman's economists hinted in a report over the weekend that the firm's commodity team might soon boost its forecast for oil prices.
NY Times | Recession Slows Migration, Census Finds
Domestic migration last year reached its lowest level since the government began tracking it in the 1940s, the Census Bureau said, as the lingering effects of the recession continued to curb Americans’ mobility.
Econ Comments
Washington Times | SHUGHART: Obama’s schizo energy policy
Counterproductive approach to oil production.
Daily Caller | Free trade agreements would jumpstart jobs
The longer the United States waits, the more market share U.S. manufacturers will lose to overseas competitors.
WSJ | Holding Mrs. Warren Accountable
The consumer financial czar doth protest too much.
Washington Times | MILLER: Obama’s $20 billion mortgage shakedown
Consumers to pay the bill for upside-down house loans.
Reports
Mercatus Center | Who's Watching the Watchmen?
Testimony before the House Committee on Oversight and Government Relations, Subcommittee on TARP, Financial Services, and Bailouts of Public and Private Programs.
Bloomberg | Durable Goods Orders Fall the Most in 6 Months
Orders for U.S. durable goods dropped more than forecast in April, reflecting a slump in aircraft demand and disruptions in supplies of auto parts stemming from the earthquake in Japan.
CNN Money | Oil is going up! No wait, down! Up!
Goldman's economists hinted in a report over the weekend that the firm's commodity team might soon boost its forecast for oil prices.
NY Times | Recession Slows Migration, Census Finds
Domestic migration last year reached its lowest level since the government began tracking it in the 1940s, the Census Bureau said, as the lingering effects of the recession continued to curb Americans’ mobility.
Econ Comments
Washington Times | SHUGHART: Obama’s schizo energy policy
Counterproductive approach to oil production.
Daily Caller | Free trade agreements would jumpstart jobs
The longer the United States waits, the more market share U.S. manufacturers will lose to overseas competitors.
WSJ | Holding Mrs. Warren Accountable
The consumer financial czar doth protest too much.
Washington Times | MILLER: Obama’s $20 billion mortgage shakedown
Consumers to pay the bill for upside-down house loans.
Reports
Mercatus Center | Who's Watching the Watchmen?
Testimony before the House Committee on Oversight and Government Relations, Subcommittee on TARP, Financial Services, and Bailouts of Public and Private Programs.
Health Care
Econ Comments
Washington Times | NEERHOF: Who will be in charge of your health care?
The battle in Washington will determine if it is you - or bureaucrats.
Washington Times | NEERHOF: Who will be in charge of your health care?
The battle in Washington will determine if it is you - or bureaucrats.
Monetary
News
Bloomberg | Treasury 10-Year Yields Touch Level Below 200-Day Moving Average
Treasury 10-year note yields touched a level below their 200-day moving average for the first time since December on speculation Europe’s debt crisis is getting worse and the U.S. economy is weakening.
Econ Comments
MarketWatch | QE2 was a bust
It‘s cost $600 billion of your money. And it was supposed to rescue the economy. But has Ben Bernanke’s huge financial stimulus package, known as “Quantitative Easing 2,” actually worked as planned?
Blogs
WSJ: Real Time Economics | Kansas City, Dallas Feds Want Higher Discount Rate
Ten of the Fed’s 12 district banks voted to keep the discount rate unchanged at 0.75%, according to minutes released Tuesday. Directors from the Kansas City and Dallas Fed called for an increase in the rate to 1%.
WSJ: Real Time Economics | OECD Urges Fed to Raise Rates
In its semi-annual economic outlook, the OECD said gradually tightening credit soon after the Fed completes its government bond purchases in June would reduce the need for steeper–and potentially disruptive–increases in interest rates later.
Bloomberg | Treasury 10-Year Yields Touch Level Below 200-Day Moving Average
Treasury 10-year note yields touched a level below their 200-day moving average for the first time since December on speculation Europe’s debt crisis is getting worse and the U.S. economy is weakening.
Econ Comments
MarketWatch | QE2 was a bust
It‘s cost $600 billion of your money. And it was supposed to rescue the economy. But has Ben Bernanke’s huge financial stimulus package, known as “Quantitative Easing 2,” actually worked as planned?
Blogs
WSJ: Real Time Economics | Kansas City, Dallas Feds Want Higher Discount Rate
Ten of the Fed’s 12 district banks voted to keep the discount rate unchanged at 0.75%, according to minutes released Tuesday. Directors from the Kansas City and Dallas Fed called for an increase in the rate to 1%.
WSJ: Real Time Economics | OECD Urges Fed to Raise Rates
In its semi-annual economic outlook, the OECD said gradually tightening credit soon after the Fed completes its government bond purchases in June would reduce the need for steeper–and potentially disruptive–increases in interest rates later.
Taxes
News
MarketWatch | Nasty tax surprise on retirement loans
Propose law could give 401(k) savers the break they need.
MarketWatch | Nasty tax surprise on retirement loans
Propose law could give 401(k) savers the break they need.
Employment
Blogs
Economist: Free Exchange | Song two
IN THE past year American manufacturers have added almost 200,000 jobs to the payrolls (197,000 from April 2010 to April 2011 to be precise).
WSJ: Real Time Economics | Three-Quarters of Employers Plan to Hire New Graduates
Three out of four companies plan to hire recent college graduates, a new survey shows, in the latest sign of an improving job market for the Class of 2011.
Economist: Free Exchange | Song two
IN THE past year American manufacturers have added almost 200,000 jobs to the payrolls (197,000 from April 2010 to April 2011 to be precise).
WSJ: Real Time Economics | Three-Quarters of Employers Plan to Hire New Graduates
Three out of four companies plan to hire recent college graduates, a new survey shows, in the latest sign of an improving job market for the Class of 2011.
Budget
News
Fox News | Chrysler repays $7.6B in government loans
Chrysler took $10.5 billion from the U.S. government to survive two years ago, and earlier had repaid some of the money. On Tuesday, it retired a $5.9 billion balance on the U.S. loans and $1.7 billion to the governments of Canada and Ontario.
Bloomberg | Biden Aims for $1 Trillion Budget Cuts
Vice President Joe Biden set a goal of at least $1 trillion in budget cuts from negotiations with congressional leaders on the federal debt as talks turned to Medicare, a contentious issue that risks replicating a partisan divide on Capitol Hill.
CNN Money | G8 meeting: What's at stake
...likely to be discussed is the United States' federal budget deficit and the looming debt ceiling the country is facing, as well as high commodity prices fueling concerns about inflation around the world.
Econ Comments
Washington Times | EDITORIAL: Reid’s budget strategy
Senate Majority Leader Harry Reid has no interest in resolving the looming debt and entitlement crisis.
Globe and Mail | The U.S. fiscal solution: Follow Canada’s lead
Similar actions unfolding in the U.S. today may well create the illusion of prosperity, but as any Canadian will tell you (or perhaps anyone from New Zealand a decade earlier), there is no such thing as a free lunch.
Blogs
NRO: The Corner | What to Take Away from the Trustees Reports
rom now on, Social Security will be running a permanent cash-flow deficit, which means that taxes collected for the program aren’t enough to cover the benefits paid to retirees. Starting now, the program will draw from the trust fund balances to keep payments to retirees going; in concrete terms, Treasury will borrow money to pay back the trust funds.
Fox News | Chrysler repays $7.6B in government loans
Chrysler took $10.5 billion from the U.S. government to survive two years ago, and earlier had repaid some of the money. On Tuesday, it retired a $5.9 billion balance on the U.S. loans and $1.7 billion to the governments of Canada and Ontario.
Bloomberg | Biden Aims for $1 Trillion Budget Cuts
Vice President Joe Biden set a goal of at least $1 trillion in budget cuts from negotiations with congressional leaders on the federal debt as talks turned to Medicare, a contentious issue that risks replicating a partisan divide on Capitol Hill.
CNN Money | G8 meeting: What's at stake
...likely to be discussed is the United States' federal budget deficit and the looming debt ceiling the country is facing, as well as high commodity prices fueling concerns about inflation around the world.
Econ Comments
Washington Times | EDITORIAL: Reid’s budget strategy
Senate Majority Leader Harry Reid has no interest in resolving the looming debt and entitlement crisis.
Globe and Mail | The U.S. fiscal solution: Follow Canada’s lead
Similar actions unfolding in the U.S. today may well create the illusion of prosperity, but as any Canadian will tell you (or perhaps anyone from New Zealand a decade earlier), there is no such thing as a free lunch.
Blogs
NRO: The Corner | What to Take Away from the Trustees Reports
rom now on, Social Security will be running a permanent cash-flow deficit, which means that taxes collected for the program aren’t enough to cover the benefits paid to retirees. Starting now, the program will draw from the trust fund balances to keep payments to retirees going; in concrete terms, Treasury will borrow money to pay back the trust funds.
Tuesday, May 24, 2011
General Economics
News
Market Watch | China’s current-account surplus shrinks 18%
A broad measure of China’s global trade contracted by nearly one-fifth in the first quarter, though the data were seen as more of a soft patch than as indicating a major trend change that would dent the case for a stronger yuan, analysts said.
Bloomberg | Oil Rises After Biggest Loss in Week; Goldman Sachs Boosts Price Forecast
Oil rose in New York after its biggest loss in more than a week, on signs of shrinking crude inventories and as a drop in the dollar heightened the oil’s appeal for protecting against inflation.
Market Watch | Consumer spending expected to slow down
Despite persistent unease over their personal finances, consumers remain the backbone of the economy, and data to be released this week will show the state of their spending.
CNN: Money | Obama budget chief optimistic on debt deal
A bipartisan group of negotiators is "making progress" toward finding a way to both raise the debt ceiling and whittle down budget deficits, President Obama's top budget chief said Monday.
Fox News | A look at economic developments around the globe
A look at economic developments and activity in major stock markets around the World Monday.
Econ Comments
Washington Times | RAHN: Banking on national economic suicide
New account reporting rule would drive out foreign capital.
Washington Times | VALVO: Energy subsidies threaten to break GOP’s small-government promise
Republicans welcome central planners to natural gas market.
Politico | Lower gas prices are possible now
Excessive speculation defeats the purpose for the commodity markets, which have been largely taken over by new speculators from the capital markets gambling on future price moves. If this practice stops, prices for commodities such as oil and gasoline will fall.
Washington Times | EDITORIAL: The Obama slowdown
Big-government policies continue to drag down the economy.
Minyanville | Why Bernanke Will Be Forced to Institute QE3
Here, the two factors that suggest it's likely we'll see more quantitative easing.
Blogs
WSJ: Real Time Economics | Nearly Half of Americans Are ‘Financially Fragile’
Nearly half of Americans say that they definitely or probably couldn’t come up with $2,000 in 30 days, according to new research, raising concerns about the financial fragility of many households.
Reports
NBER | Stock Volatility During the Recent Financial Crisis
This paper uses monthly returns from 1802-2010, daily returns from 1885-2010, and intraday returns from 1982-2010 in the United States to show how stock volatility has changed over time. It also uses various measures of volatility implied by option prices to infer what the market was expecting to happen in the months following the financial crisis in late 2008.
OECD | Compendium of OECD well-being indicators
This Compendium represents one of the first attempts to respond to the demand for comparative information on the conditions of people.s lives in developed market economies. Previous contributions in this field have focused on the conditions of poorer countries and on a more narrow range of dimensions (e.g. Human Development Index). This Compendium extends these efforts on both fronts.
Market Watch | China’s current-account surplus shrinks 18%
A broad measure of China’s global trade contracted by nearly one-fifth in the first quarter, though the data were seen as more of a soft patch than as indicating a major trend change that would dent the case for a stronger yuan, analysts said.
Bloomberg | Oil Rises After Biggest Loss in Week; Goldman Sachs Boosts Price Forecast
Oil rose in New York after its biggest loss in more than a week, on signs of shrinking crude inventories and as a drop in the dollar heightened the oil’s appeal for protecting against inflation.
Market Watch | Consumer spending expected to slow down
Despite persistent unease over their personal finances, consumers remain the backbone of the economy, and data to be released this week will show the state of their spending.
CNN: Money | Obama budget chief optimistic on debt deal
A bipartisan group of negotiators is "making progress" toward finding a way to both raise the debt ceiling and whittle down budget deficits, President Obama's top budget chief said Monday.
Fox News | A look at economic developments around the globe
A look at economic developments and activity in major stock markets around the World Monday.
Econ Comments
Washington Times | RAHN: Banking on national economic suicide
New account reporting rule would drive out foreign capital.
Washington Times | VALVO: Energy subsidies threaten to break GOP’s small-government promise
Republicans welcome central planners to natural gas market.
Politico | Lower gas prices are possible now
Excessive speculation defeats the purpose for the commodity markets, which have been largely taken over by new speculators from the capital markets gambling on future price moves. If this practice stops, prices for commodities such as oil and gasoline will fall.
Washington Times | EDITORIAL: The Obama slowdown
Big-government policies continue to drag down the economy.
Minyanville | Why Bernanke Will Be Forced to Institute QE3
Here, the two factors that suggest it's likely we'll see more quantitative easing.
Blogs
WSJ: Real Time Economics | Nearly Half of Americans Are ‘Financially Fragile’
Nearly half of Americans say that they definitely or probably couldn’t come up with $2,000 in 30 days, according to new research, raising concerns about the financial fragility of many households.
Reports
NBER | Stock Volatility During the Recent Financial Crisis
This paper uses monthly returns from 1802-2010, daily returns from 1885-2010, and intraday returns from 1982-2010 in the United States to show how stock volatility has changed over time. It also uses various measures of volatility implied by option prices to infer what the market was expecting to happen in the months following the financial crisis in late 2008.
OECD | Compendium of OECD well-being indicators
This Compendium represents one of the first attempts to respond to the demand for comparative information on the conditions of people.s lives in developed market economies. Previous contributions in this field have focused on the conditions of poorer countries and on a more narrow range of dimensions (e.g. Human Development Index). This Compendium extends these efforts on both fronts.
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