News
Market Watch | June Empire State index plunges to negative figure
Manufacturing activity deteriorated sharply in the New York region in June, raising concern that the slowdown seen in the factory sector that started in May could have marked the start of a contraction rather than a temporary soft patch.
NYT | States Want More in Pension Contributions
First came the pay freezes and unpaid furloughs. Then came the higher contributions for health insurance. Now, in the most definitive sign yet that the era of generous compensation for public-sector employees is ending, workers in more than half the states face the prospect of paying more of their salary toward their pensions.
Market Watch | May housing starts rise 3.5% after rough April
Ground-breaking on new U.S. housing units recovered a bit in May after a sharp drop in April, but remained well below levels that would provide any boost to the economy.
Market Watch | 30-year fixed-rate mortgage inches to 4.5%
Mortgage rates changed little this week, with the 30-year fixed-rate mortgage inching up to 4.5% from last week’s 4.49% average rate, according to Freddie Mac’s weekly survey of conforming mortgage rates, released Thursday.
Bloomberg | Consumer Expectations in U.S. Drop
e Bloomberg gauge of economic expectations dropped to minus 31 this month, the lowest level since March 2009, from minus 16 in May. The Consumer Comfort Index, issued weekly, improved to minus 44 in the period to June 12, the highest level since mid April, from minus 45.9 as fuel prices kept falling.
Fox News | Recovery Summer? Mission Accomplished
May saw the fastest increase in U.S. consumer prices since 2006. That’s cause for real concern because rising prices can either be a symptom of economic growth or da drag on a weak economy, and this sure ain't the former.
Econ Comments
Barron's | Derivatives Disaster Deferred -- For Now
Do benefits exceed costs of Dodd-Frank? Delay provides more time to determine.
Politico | The case for sensible patent reform
The latest unemployment report should serve as a wake-up call to both political parties. Economically and politically speaking, the nation needs sustainable job growth — and fast.
RCM | Mark Zandi: Always Quoted, Often Wrong, Never In Doubt
It's accepted wisdom in certain quarters that we should never believe what we read. With journalists pressed to report on all manner of subjects about which they often lack knowledge, it's inevitable that their news reporting will be slanted in ways that misinform the reader.
Politico | The answer isn't taxes but growth
Contrary to all expectations, congressional negotiators working with the administration and Vice President Joe Biden are reportedly making progress in finding some common ground on a package of measure to cut the deficit as part of a plan to potentially raise the debt ceiling.
Blogs
WSJ: Real Time Economics | Business Lobby Tells Fed Big-Bank Rules Can Hurt Economy
The largest business lobby in the U.S. complained to the Federal Reserve that rules requiring big banks to hold more money to protect against potential losses could hurt the wider economy, though Fed Chairman Ben Bernanke has indicated he doesn’t agree.
Cato Institute | Bailouts Beget More Bailouts
The objection to the auto bailout was not that the federal government wouldn't be able to marshal adequate resources to help GM and Chrysler. The most serious concerns were about the consequences of that intervention — the undermining of the rule of law, the property confiscations, the politically driven decisions and the distortion of market signals.
WSJ: Real Time Economics | Shiller Sees ‘Substantial’ Probability of Recession
Noted economist Robert Shiller said Wednesday there was a “substantial” probability the U.S. could lurch again into recession.
Noting weak global data — including a stubbornly depressed U.S. housing market — were flashing warning signs, the Yale University economist said the economy right now faced a “tipping point.”
Forbes | Addressing The Fallacious Views Of Contemptuous Keynesians
It doesn’t seem to occur to Progressives that the reason that Americans “…don’t buy Keynesian economics” might just be because Keynesian economics doesn’t work.
Calculated Risk | May Update: 2012 Social Security Cost-Of-Living Adjustment
The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 4.1 percent over the last 12 months to an index level of 222.954 (1982-84=100). For the month, the index rose 0.5 percent ..."
