News
WSJ | Economists Split Over Path Forward
Business economists are split on whether more austerity or more stimulus is the best path forward for U.S. fiscal policy, according to a new survey, highlighting the dilemma facing policy makers eager to shore up the nation's economy and long-term fiscal position.
Bloomberg | Goldman Cuts U.S. Full-Year Growth Forecast on Signs Recovery Has Stalled
The U.S. will expand 1.5 percent this year, down from a previous forecast of 1.7 percent, Goldman economists in New York including Jan Hatzius said in a note published on Aug. 19. Credit Suisse was also among banks lowering growth forecasts this month.
CNN: Money | Falling oil and gas prices: A blessing and a curse
Oil prices are falling once again, and relief at the gas pump is likely on the way too. But be careful what you wish for. Low gas prices can sometimes be more a symptom of a weakening economy, than a cure to consumers' woes.
Econ Comments
NYT | The Sad Statistic That Trumps the Others
THERE’S been a lot of bad economic news lately, yet we may be overlooking the most disturbing development of all: our economic productivity has been weakening. This isn’t just a problem for the United States. Because America remains a leader in technology and innovation, it is also a matter of concern for the entire world.
Forbes | Why We Don't Need An Infrastructure Bank? Japan Is Why
A state infrastructure bank will be at the core of President Obama’s “jobs program” that he plans to unveil after his vacation. He will argue we desperately need a new government entity to repair our crumbling infrastructure and create jobs.
WSJ | How Not to Grow an Economy
Day after day brings headlines of another legislative, regulatory or enforcement action that gives CEOs and investors reason to hunker down, retain as much cash as possible and ride out whatever storms are ahead. This is not the way to nurture an already fragile recovery, much less help the economy to endure shocks from Europe, natural disasters or a big bank failure.
WSJ | The Bond Bubble and the Case for Stocks
Despite the sluggish economy, the corporate sector is churning out record profits and increasing dividend payments. We believe dividend-paying stocks are the answer to a Treasury bond market that looks more dangerous than ever.
Source | There’s No Shortage of Work, There’s a Shortage of Workers
If the issue has gone ignored, that may be because it confront us with a paradox: We’re suffering from high unemployment, but that’s partly because people can’t get to those jobs that are currently available.
Washington Post | Removing the obstacles to economic growth
In fact, the Obama administration’s anti-business, hyper-regulatory, pro-tax agenda has fueled economic uncertainty and sent the message from the administration that “we want to make it harder to create jobs.”
WSJ | Time to Deregulate the Practice of Law
Every other industry that has been deregulated, from trucking to telephones, has lowered prices without sacrificing quality.
Blogs
Calculated Risk | Schedule for Week of Aug 21st
The most anticipated event this coming week is Fed Chairman Bernanke's speech at Jackson Hole on Friday.
Café Hayek | Selgin on Mellon, Harding, and Hoover
Here’s George Selgin on the 1920-21 economic downturn in the U.S. His conclusion:
Calculated Risk | More downward revisions to economic forecasts
Below are some downward forecast revisions released last night and today. If these forecasts are close, then the unemployment rate will probably increase over the next few quarters too.
Calculated Risk | The New Retirement Plan: No Retirement
Already battered nest eggs took another beating this month with the market's wild swings. With interest rates essentially at zero since 2008, income from Treasurys and certificates of deposit is pretty paltry. ... On top of that, housing prices [leave] homeowners with much less equity to tap.
Calculated Risk | Unofficial Problem Bank list declines to 984 Institutions
Here is the unofficial problem bank list for Aug 20, 2011.
Reports
RCM: Wells Fargo | Weekly Economic & Financial Commentary
The Economy Continues to Lose Momentum.
