Econ Comments
Financial Times | The big questions China still has to answer
China’s growth has been a source of strength in the crisis, but its leaders know their growth model is unsustainable.
WSJ | The Great Recession and Government Failure
When comparing the performance of markets to government, markets look pretty darn good.
Forbes | We Need A True, Comprehensive Audit Of The Fed
The Fed has been forced to open some of their books twice this year. Both times top Fed officials claimed that releasing their loan information to the public would cause “severe and irreparable competitive injury” to borrowing banks.
WSJ | In Government We Mistrust
Obama said he'd be Reagan in reverse. He was right.
Washington Times | RUSSELL & GLEASON: Perry’s ‘loser pays’ is an economic winner
New Texas law expected to reduce unjustified lawsuits.
Market Watch | U.S. said ready to sue big banks over mortgages
FHFA to seek billions; Fed reportedly eyes B. of A. contingency plan.
Politico | More business for small businesses
"One way to do this is to increase contracting opportunities for small businesses.
Small business contracting is smart contracting. These firms bring more competition and reduced prices, resulting in better value. Additionally, small business innovation, efficiency and flexibility allow the government to do more with less."
Blogs
Café Hayek | I’m from the federal family and I’m here to help you
The federal “family” is not a family. It’s a faux family. A sham family. The government has neither the information nor the incentives to allocate goods wisely in the face of a shortage or a catastrophe. It should do less leaning forward and more sitting back.
ThinkMarkets | What is Economics Today?
I want to suggest that many threats to free markets come from “respectable” economics in today’s world. There are at least three major areas:
Daily Capitalist | U.S, EU Manufacturing Data Weak
Two very important manufacturing reports came out today: The ISM manufacturing report for the U.S., and Markit’s manufacturing PMI for the eurozone. Both reports showed substantial weakness in manufacturing.
Econlog | Keynesianism vs. Pump Priming
Keynesianism is widely seen as a "pump priming" rationale for government intervention. The government sees the economy in the doldrums, gives it a much-needed jolt, and then the private economy gets back on feet - with no need for further assistance.
WSJ: Real Time Economics | Vital Signs: Construction Slumped in July
Construction spending slumped in July. Total spending on construction fell 1.3% from June to $789.5 billion, at an annual rate. The decline was broad-based. Public construction fell 2.1% while spending on factories, hotels and other nonresidential projects slipped 0.4%.
ThinkMarkets | “A Divine Miracle”
Transfer payments in the guise of food stamps, unemployment benefits, and income redistribution generally have been the centerpiece of this administration’s policy to stimulate the economy.
WSJ: Real Time Economics | Global Manufacturing Slowdown Shows Every Nation Can’t Count on Exports for Growth
In the U.S. the new orders index showed orders falling for the second month in a row. Despite that, what seems to be helping American factories is a rebound in car sales and output after supply chain disruptions in Japan caused U.S.-based vehicle makers to cut production schedules in the spring and early summer.
NRO: The Corner | Much-Needed Regulatory Reform
I understand that lawmakers want to be perceived as doing something to fix our economic problems. So here is something lawmakers could do now to help the economy grow.
Reports
RCM: Wells Fargo | ISM: Slowdown—Not a Collapse, Easier Prices
U.S. manufacturing continues to slowdown as output and orders fell below breakeven but employment held up. Meanwhile, the moderation in prices paid suggests some relief ahead for input prices.
CRS | Revisiting Mortgage Loan Disclosures Under the Consumer Financial Protection Bureau
High default and foreclosure rates in the housing market have resulted in questions as to whether borrowers were fully informed about the terms of their mortgage loans. A lack of transparency with respect to loan terms and settlement costs can make it difficult for consumers to make well-informed decisions when choosing mortgage products. In addition, inadequate disclosures can make some borrowers more vulnerable to predatory lending or discriminatory practices.
