News
Fox News | AARP Pivots on Social Security Benefit Cuts
AARP, the powerful lobbying group for older Americans, was dropping its long standing oppostition to cutting Social Security beneifts, a move that could rock Washington's debate over how to revamp the nation's entitlement programs.
Market Watch | June Philly Fed manufacturing gauge turns negative
Exacerbating worries about a slowing U.S. economy, an important regional gauge of manufacturing activity showed contraction in June, according to figures released Thursday.
Bloomberg | Corn Gains on Speculation U.S. Ethanol Output Won’t Decline
Corn rebounded after falling to a three-week low on speculation that ethanol producers won’t reduce purchases of the grain after the U.S. Senate voted to repeal industry tax incentives.
Market Watch | Senate votes to end ethanol subsidies
The Senate voted to kill two tax breaks for the ethanol industry on Thursday, with more than half of the chamber’s Republicans joining Democrats to approve the measure.
Bloomberg | IMF Cuts Forecast for U.S. Growth Again Amid Risk of Contagion From Europe
The International Monetary Fund cut its forecast for U.S. growth in 2011 for the second time in two months, warning that further setbacks to a recovery pose growing threats to the world economy, along with potential contagion from the European debt crisis.
Market Watch | How to fix crumbling U.S. roads, rails and airways
If America’s prosperity depends on its roadways, the future looks pretty rough.
RCM | What Is a Real Economic Recovery?
The economy begins to suddenly and "unexpectedly" weaken just as monetary stimulus ends. The flames of Greece radiate throughout Europe, pressuring banks in Germany and, especially, France. The euro comes under pressure as LIBOR rates trip warnings, and eurodollar exposures are re-evaluated with a keener eye toward counterparty risk.
Bloomberg | Faster Inflation Causes ‘Trade Down’ Boost for McDonald’s, Wal-Mart
McDonald’s Corp. (MCD) and Wal-Mart Stores Inc. (WMT) are getting a boost from value-minded consumers as rising commodity costs constrain discretionary income and confidence in the economy wanes.
Econ Comments
Washington Post | Rebuild American infrastructure? Companies’ offshore profits can help.
America needs investment in its infrastructure. We need someone to invest hundreds of billions of dollars into for-profit trains, roads, airports, clean electricity generation, high-voltage transmission lines and more.
Washington Times | BARBER: Energy independence, jobs within reach
Obama and greens have locked up nation’s natural resources.
Washington Times | SMITH: States rise up against federal overreach
Labor board’s attack on Boeing seen as threat to state commerce.
Bloomberg | Oil Heads for Biggest Weekly Decline in Six on Concern Over European Debt
Oil dropped to its lowest level in four months in New York on concern the Greek debt crisis will derail Europe’s economic recovery, curbing fuel demand.
Blogs
Reason Foundation | Type the Title You Want People to See
The past month has yielded a host of negative news about housing. And despite the range of federal programs to save the housing market, we are currently faced with five big problems:
Café Hayek | Cotton This
Buried in this bad news, however, is a speck of good news: over the objection of a majority of House Republicans, that chamber voted to end the crazy year-old scheme of sending more than $12 million monthly to Brazil in order to induce the government there not to raise tariffs on U.S. exports to Brazil.
Econlog | The Republican Candidates on Manufacturing
During the Republican debate in New Hampshire on Monday, Mike Patinsky asked how the candidates planned to return manufacturing jobs to the United States. Ron Paul answered first, claiming that we have exported our jobs. He connected it with Federal Reserve policy. I did not understand him.
Reports
NBER | Mortgage Modification and Strategic Behavior: Evidence from a Legal Settlement with Countrywide
We investigate whether homeowners respond strategically to news of mortgage modification programs. We exploit plausibly exogenous variation in modification policy induced by U.S. state government lawsuits against Countrywide Financial Corporation, which agreed to offer modifications to seriously delinquent borrowers with subprime mortgages throughout the country.
