News
CNN: Money | S&P downgrades 15 banks
Standard and Poor's downgraded the credit ratings of 15 banks Tuesday, after applying new criteria to the world's 37 largest banks.
USA Today | New businesses gamble on the economy
Who would start a business in this economy?
CNN: Money | A French downgrade could derail eurozone rescue
In what would be another blow to Europe's beleaguered rescue fund, there is growing speculation that France will eventually lose its top-tier credit rating.
Market Watch | Third-quarter productivity lowered to 2.3%
U.S. workers were not as productive in the third-quarter as originally believed, according to revised government data.
CNN: Money | Solar power bankruptcies loom as prices collapse
The once high-flying solar power sector is headed for tough times, as a combination of slack demand and massive oversupply is leading to plummeting prices and profits for solar panel makers.
USA Today | Gas prices hit lowest mark since February
Gasoline prices have dropped to their lowest level since Feb. 21 in the government's latest weekly survey.
CNN: Money | Home prices fall to 8-year lows
Home prices dropped 3.9% year-over-year during the three months ended Sept. 30, according to the S&P/Case-Shiller national home price index. On a quarterly basis, prices were slightly higher, squeezing out a 0.1% gain.
Washington Times | GOP seeks to head off NLRB rules
Would speed up organizing process, allow multiple unions.
New York Times | Line Grows Long for Free Meals at U.S. Schools
The number of students receiving subsidized lunches rose to 21 million last school year from 18 million in 2006-7, a 17 percent increase.
WSJ | Bill Eases U.S. Residency for Foreign Skilled Workers
The House of Representatives passed a bill Tuesday to make it easier for skilled workers to get green cards, a measure that particularly affects employers who want to hire Chinese and Indian nationals
Econ Comments
WSJ | A Political Solution for the Euro?
Germany is right to demand that the worst-run nations submit to fiscal discipline in exchange for financial aid.
CNN: Money | Consumers feeling rosier about the economy
The Consumer Confidence Index shot up to 56.0 in November from 40.9 the previous month, the Conference Board reported Tuesday, the highest reading since July.
Blogs
NRO: The Corner | A Better Cause for OWS: Old vs. Young
Whether young people realize it or not, the reason most lawmakers won’t touch Medicare is because they know that older Americans vote.
Flowing Data | Four degrees of separation
We found that six degrees actually overstates the number of links between typical pairs of users:
Daily Capitalist | A Note On GDP
The BEA’s numbers, the national income and product accounts (NIPA), are constantly revised to adjust their measurement of the economy. The last revision came out in August and they make some observations about their understanding of the business cycle aside from the data revisions themselves:
Econlog | Credit Rating Agencies and Risk
Suppose that a rating for a security is a measures how far the default option is out of the money. Buyers of securities can make whatever use they like of this measure. But does it help regulators?
Calculated Risk | CoreLogic: 10.7 Million U.S. Properties with Negative Equity in Q3
The top five states combined have an average negative equity ratio of 41.4 percent, while the remaining states have a combined average negative equity ratio of 17.6 percent.
Café Hayek | Important Perspective on Imports
If we were to completely eliminate tariffs on imports, U.S. manufacturers relying on foreign inputs would receive significant benefits, while other U.S. manufacturers competing against imports would be less protected from foreign competition.
Reports
NBER | The Composition and Draw-down of Wealth in Retirement
This paper presents evidence on the resources available to households as they enter retirement. It draws heavily on data collected by the Health and Retirement Study and calculates the "potential additional annuity income" that households could purchase, given their holdings of non-annuitized financial assets at the start of retirement.
CRS | CRS An Overview and Analysis of H.R. 3010, the Regulatory Accountability Act of 2011
This report begins by providing a brief overview of the major requirements of the rulemaking process currently found in statutes, executive orders, and OMB documents, many of which would be changed or enacted into law by the proposed RAA. The report then discusses the RAA's proposed changes to these existing rulemaking requirements, providing a side-by-side comparison of the requirements of the RAA to these existing provisions.
Wednesday, November 30, 2011
Health Care
News
National Journal | Three-Fourths of U.S. HIV Patients Get Incomplete Treatment, CDC Says
The finding is ironic given that U.S. and global officials now see treatment as key to helping suppress the AIDS pandemic.
National Journal | Senate Republicans Cold to War Funds for Doc Fix
Senate Republicans were cold on Tuesday to the idea of using funds earmarked for winding down the wars in Afghanistan and Iraq to fix Medicare doctors’ pay and other year-end tax items.
National Journal | Three-Fourths of U.S. HIV Patients Get Incomplete Treatment, CDC Says
The finding is ironic given that U.S. and global officials now see treatment as key to helping suppress the AIDS pandemic.
National Journal | Senate Republicans Cold to War Funds for Doc Fix
Senate Republicans were cold on Tuesday to the idea of using funds earmarked for winding down the wars in Afghanistan and Iraq to fix Medicare doctors’ pay and other year-end tax items.
Monetary
News
USA Today | Major plan to save euro will have to wait for heads of state
Under pressure to deliver shock treatment to the ailing euro, European finance ministers failed to come up with a plan for European countries to spend within their means.
Bloomberg | Fed Lowers Interest Rate on Dollar Swaps
The Federal Reserve cut the cost of emergency dollar funding for European banks as part of a globally coordinated central-bank response to the continent’s sovereign-debt crisis.
Econ Comments
Washington Times | GULLASON: Mixing fiscal and monetary policies
Routing maturing Treasuries to reduce state sales taxes could jump-start jobs.
Market Watch | Fed's Yellen sees room for more easing
There is room for the Federal Reserve to do more to foster a stronger economic recovery, said Federal Reserve Vice Chairman Janet Yellen on Tuesday. "The scope remains to provide additional accommodation," Yellen said in a speech at a conference sponsored by the San Francisco Fed.
Blogs
WSJ: Real Time Economics | Fed’s Lockhart Skeptical New Asset Buying Would Help
Expanding the Federal Reserve balance sheet via new purchases of bonds isn’t the tonic the economy needs right now, even as European financial woes threaten the outlook for the U.S., a central bank official said Tuesday.
USA Today | Major plan to save euro will have to wait for heads of state
Under pressure to deliver shock treatment to the ailing euro, European finance ministers failed to come up with a plan for European countries to spend within their means.
Bloomberg | Fed Lowers Interest Rate on Dollar Swaps
The Federal Reserve cut the cost of emergency dollar funding for European banks as part of a globally coordinated central-bank response to the continent’s sovereign-debt crisis.
Econ Comments
Washington Times | GULLASON: Mixing fiscal and monetary policies
Routing maturing Treasuries to reduce state sales taxes could jump-start jobs.
Market Watch | Fed's Yellen sees room for more easing
There is room for the Federal Reserve to do more to foster a stronger economic recovery, said Federal Reserve Vice Chairman Janet Yellen on Tuesday. "The scope remains to provide additional accommodation," Yellen said in a speech at a conference sponsored by the San Francisco Fed.
Blogs
WSJ: Real Time Economics | Fed’s Lockhart Skeptical New Asset Buying Would Help
Expanding the Federal Reserve balance sheet via new purchases of bonds isn’t the tonic the economy needs right now, even as European financial woes threaten the outlook for the U.S., a central bank official said Tuesday.
Taxes
News
CNN Money | Payroll tax cut problem: Paying for it
After a year of beating their heads against the wall about reducing deficits, lawmakers in the next few weeks may add to them.
NY Times | In Congress, Role Reversal Over Federal Payroll Tax Cut
In a sharp role reversal, Democrats and Republicans have become divided over whether to extend a federal payroll tax cut enjoyed by every working American last year, with Democrats leading the charge for the tax break and many Republicans demanding that the cut be paid for if it is extended at all.
Politico | States cut taxes for 2012
The states put in place a net decrease of $584.2 million in new taxes and fees — the first in five years — compared with the increase $6.2 billion for fiscal 2011, according to the report by the National Governors Association and National Association of State Budget Officers.
Econ Comments
Washington Times | LAMBRO: Bent out of shape over Bush tax cuts
Obama won’t budge from demand to dun the rich.
Cato Institute | High-Tax Advocates Are Either Credulous or Envious of Wealthy
President Obama said last week that we need to increase tax rates on the wealthiest Americans to obtain an extra $100 billion in tax revenue, and he blamed the failure of the supercommittee on the unwillingness of the Republicans to increase tax rates.
Washington Times | FOSTER: Repatriation tax holiday not a stimulus
America’s multinational companies are pushing hard for another repatriation tax holiday. Yes, pro-growth tax cuts and tax reform should be on Congress‘ agenda to get the economy moving again. But there are much better options than this jobs dud, starting with making the George W. Bush tax cuts permanent.
Reports
CRS | The Temporary Payroll Tax Reduction: A Brief Description and Economic Analysis
Social Security is financed by payroll taxes, which are paid by covered workers and their employers.1 In the absence of a payroll tax reduction, employees and employers would each pay 6.2% of covered earnings, up to an annual limit, whereas self-employed individuals would pay 12.4% of net self-employment income, up to an annual limit.
CNN Money | Payroll tax cut problem: Paying for it
After a year of beating their heads against the wall about reducing deficits, lawmakers in the next few weeks may add to them.
NY Times | In Congress, Role Reversal Over Federal Payroll Tax Cut
In a sharp role reversal, Democrats and Republicans have become divided over whether to extend a federal payroll tax cut enjoyed by every working American last year, with Democrats leading the charge for the tax break and many Republicans demanding that the cut be paid for if it is extended at all.
Politico | States cut taxes for 2012
The states put in place a net decrease of $584.2 million in new taxes and fees — the first in five years — compared with the increase $6.2 billion for fiscal 2011, according to the report by the National Governors Association and National Association of State Budget Officers.
Econ Comments
Washington Times | LAMBRO: Bent out of shape over Bush tax cuts
Obama won’t budge from demand to dun the rich.
Cato Institute | High-Tax Advocates Are Either Credulous or Envious of Wealthy
President Obama said last week that we need to increase tax rates on the wealthiest Americans to obtain an extra $100 billion in tax revenue, and he blamed the failure of the supercommittee on the unwillingness of the Republicans to increase tax rates.
Washington Times | FOSTER: Repatriation tax holiday not a stimulus
America’s multinational companies are pushing hard for another repatriation tax holiday. Yes, pro-growth tax cuts and tax reform should be on Congress‘ agenda to get the economy moving again. But there are much better options than this jobs dud, starting with making the George W. Bush tax cuts permanent.
Reports
CRS | The Temporary Payroll Tax Reduction: A Brief Description and Economic Analysis
Social Security is financed by payroll taxes, which are paid by covered workers and their employers.1 In the absence of a payroll tax reduction, employees and employers would each pay 6.2% of covered earnings, up to an annual limit, whereas self-employed individuals would pay 12.4% of net self-employment income, up to an annual limit.
Employment
News
WSJ | Euro-Zone Unemployment Hits High
Some 16.294 million people in the euro zone were unemployed in October, a figure never equalled since records for all 17 nations were first compiled in January 1995. That is equivalent to 10.3% of the currency bloc's workforce—the highest percentage since June 1998.
Market Watch | Private-sector jobs rise 206,000: ADP
Growth in private-sector payrolls sharply accelerated in November, led by the service-producing sector and small businesses, according to the ADP employment report released Wednesday.
Blogs
Heritage Foundation | Reduced Job Creation—Not Increased Layoffs—Explains High Unemployment
Unemployment remains stuck at 9 percent because of low job creation, not higher job losses. In fact, job losses hit a record low in March 2011. Fewer entrepreneurs are starting new companies, and fewer business owners are expanding existing enterprises.
WSJ | Euro-Zone Unemployment Hits High
Some 16.294 million people in the euro zone were unemployed in October, a figure never equalled since records for all 17 nations were first compiled in January 1995. That is equivalent to 10.3% of the currency bloc's workforce—the highest percentage since June 1998.
Market Watch | Private-sector jobs rise 206,000: ADP
Growth in private-sector payrolls sharply accelerated in November, led by the service-producing sector and small businesses, according to the ADP employment report released Wednesday.
Blogs
Heritage Foundation | Reduced Job Creation—Not Increased Layoffs—Explains High Unemployment
Unemployment remains stuck at 9 percent because of low job creation, not higher job losses. In fact, job losses hit a record low in March 2011. Fewer entrepreneurs are starting new companies, and fewer business owners are expanding existing enterprises.
Budget
News
Washington Times | EU nations offer Greece big bailout in currency crisis
Eurozone ministers offered Greece a $10.7 billion Christmas rescue package Tuesday to stem an immediate cash crisis, yet failed to resolve fears that the common euro currency might be doomed.
Econ Comments
Reuters | Japan and the debt faith crisis: James Saft
Could Japan be the next victim of the crisis of faith in government bonds?
Cato Institute | After the Supercommittee?
Taxpayers just dodged a bullet. Even though Republicans on the so-called supercommittee were willing to break their promises and support a tax hike, a 1990-style budget deal was not possible because Democrats demanded too much and offered too little in exchange.
Roll Call | Deficit Hawks See Opening
With the super committee's failure last week, industrious lawmakers are grasping yet again at the opportunity to reach a sweeping deficit reduction deal — but they face the same obstacles that have crushed every group that's tried.
Forbes | Rich Nations That Went Broke By Spending Too Much
Government spending drives taxes, deficits, debt and inflation, so it’s at the core of our economic problems. What to do about runaway spending?
Daily Caller | America’s ‘shadow deficit’ looms larger than $15 trillion
Yet as the federal government continues blowing your money at an unprecedented, unsustainable rate, politicians from both parties continue refusing to make long-overdue cuts.
WSJ | Blame It on Berlin
The euro bailout caucus wants the Germans to write a blank check.
RCM | Bankruptcy Is An Ugly Option for Cities
Earlier this month the Harrisburg, Pa., city council threw itself on the mercy of federal bankruptcy court, hoping to find a less onerous solution to its debt woes than the workout plans proposed by the state of Pennsylvania and by the city's own mayor.
Blogs
NRO: The Corner | Cutting Spending Is Good Politics
Over at U.S. World and News Report, Nancy Pfotenhauer has a good piece showing that cutting spending is not only good economics, it’s also good politics.
Atlantic: McArdle | How Can Europe Possibly Save Itself?
Well, things are getting a little gnarly in Europe. When you're down to the point of celebrating that Italy managed to place some debt at the low, low price of 7.6% . . . well, it's two for one drinks specials at the first class bar on the Titanic!
Washington Times | EU nations offer Greece big bailout in currency crisis
Eurozone ministers offered Greece a $10.7 billion Christmas rescue package Tuesday to stem an immediate cash crisis, yet failed to resolve fears that the common euro currency might be doomed.
Econ Comments
Reuters | Japan and the debt faith crisis: James Saft
Could Japan be the next victim of the crisis of faith in government bonds?
Cato Institute | After the Supercommittee?
Taxpayers just dodged a bullet. Even though Republicans on the so-called supercommittee were willing to break their promises and support a tax hike, a 1990-style budget deal was not possible because Democrats demanded too much and offered too little in exchange.
Roll Call | Deficit Hawks See Opening
With the super committee's failure last week, industrious lawmakers are grasping yet again at the opportunity to reach a sweeping deficit reduction deal — but they face the same obstacles that have crushed every group that's tried.
Forbes | Rich Nations That Went Broke By Spending Too Much
Government spending drives taxes, deficits, debt and inflation, so it’s at the core of our economic problems. What to do about runaway spending?
Daily Caller | America’s ‘shadow deficit’ looms larger than $15 trillion
Yet as the federal government continues blowing your money at an unprecedented, unsustainable rate, politicians from both parties continue refusing to make long-overdue cuts.
WSJ | Blame It on Berlin
The euro bailout caucus wants the Germans to write a blank check.
RCM | Bankruptcy Is An Ugly Option for Cities
Earlier this month the Harrisburg, Pa., city council threw itself on the mercy of federal bankruptcy court, hoping to find a less onerous solution to its debt woes than the workout plans proposed by the state of Pennsylvania and by the city's own mayor.
Blogs
NRO: The Corner | Cutting Spending Is Good Politics
Over at U.S. World and News Report, Nancy Pfotenhauer has a good piece showing that cutting spending is not only good economics, it’s also good politics.
Atlantic: McArdle | How Can Europe Possibly Save Itself?
Well, things are getting a little gnarly in Europe. When you're down to the point of celebrating that Italy managed to place some debt at the low, low price of 7.6% . . . well, it's two for one drinks specials at the first class bar on the Titanic!
Tuesday, November 29, 2011
General Economics
News
Market Watch | U.S.-China trade disputes get wider, hotter
Ten years into its tenure as a World Trade Organization member, the planet’s second-largest economy, China, has joined the United States in a game of finger-pointing.
National Journal | A Crude Hit to the Recovery
Simply put, American consumers paid a historically high premium for their gasoline. The economy suffered for it.
CNN: Money | Why Congress can't save the Postal Service
There's one thing that turns some Tea Party Republicans into government-job lovers like their Democratic rivals: Their neighborhood post office.
WSJ | Economic Outlook Slows for the Global Economy
The global economic outlook has deteriorated significantly, the Organization for Economic Cooperation and Development said Monday, as it urged the European Central Bank to act decisively to prevent the euro-zone sovereign debt crisis from deepening and possibly dragging the U.S. economy to the brink of recession.
Bloomberg | U.S. Home Prices Decline More Than Forecast
Residential real estate prices dropped more than forecast in the year ended September, showing the industry at the center of the 2008 financial crisis continues to struggle.
Market Watch | Consumer debt declines in third quarter
Consumer debt declined slightly during the third quarter as Americans continued to deleverage in the wake of the housing crisis, according to a study released Monday.
Bloomberg | Euro-Region Economic Confidence Falls to Two-Year Low: Economy
An index of executive and consumer sentiment in the euro area fell to 93.7 from 94.8 in October, the European Commission in Brussels said today. That’s the lowest since November 2009.
Politico | Fitch Ratings: ‘Negative’ outlook for U.S. credit rating
Following the failure of the supercommittee, the U.S. government’s AAA credit rating was placed on a “negative outlook” Monday by Fitch Ratings, indicating a more than 50 percent chance the country gets slapped with another downgrade in the next two years.
NYT | Crisis in Europe Tightens Credit Across the Globe
Europe’s worsening sovereign debt crisis has spread beyond its banks and the spillover now threatens businesses on the Continent and around the world.
USA Today | Donations inch back up after recession decline
Giving totaled $291 billion in 2010, according to the 2011 annual report by the Center on Philanthropy at Indiana University. That's up 3.8% from 2009 and follows two consecutive years of declines.
WSJ | Sweden Maintains Robust Growth
Economic output grew 4.6% in the three months through September, compared with the same period in 2010, the Swedish statistics agency said Tuesday. Economists had expected 3.8% growth.
Econ Comments
Washington Times | ROEMER: Still calling for big government
The threat and fear of tyranny created the idea of America. The authors of the Constitution realized that the power of a central government strong enough to protect our nation from outside threats had to be balanced with clear states’ rights and even clearer individual rights in order to maintain liberty, economic health and national welfare.
Washington Times | EDITORIAL: Debt dumps on Durban
Economic woes threaten cash for climate change.
Cato Institute | Should the Government Narrow the Income Gap?
In 2007, the top 1 percent received 23.5 percent of income according to economists Thomas Piketty and Emmanuel Saez, but only 17.1 percent of income according to the Congressional Budget Office.
Market Watch | 10 reasons the crisis isn’t over
Commentary: There may be a lot more bad news to come.
Blogs
Calculated Risk | Visible Existing Home Inventory declines 17% year-over-year in November
In a few months, the NAR is expect to release revisions for their existing home sales and inventory numbers for the last few years. The sales and inventory revisions will be down.
Cato @ Liberty | Apparently a Little Economics Education Does Work on Congress…
I’ve seen too many times, especially during my service as staff in the Senate, politicians support policies they have to know are harmful. So it always encouraging to see some evidence of Congress taking basic Economics into account.
Café Hayek | Nudging us to death
Richard Thaler and Cass Sunstein wrote Nudge, arguing for something they called libertarian paternalism, the idea that government rather than forcing us to do the right thing might “nudge” us in the right direction via program design or tax incentives.
Calculated Risk | New Home Prices: Average Lowest since 2003
As part of the new home sales report, the Census Bureau reported that the average price for new homes fell to the lowest level since September 2003.
Marginal Revolution | Marginal Revolution 6 ideas for the Ash Heap of History
Sadly, bank runs are alive and well. They first resurfaced in the United States with a run on money-market funds and on the so-called shadow banking system in 2008.
Calculated Risk | Dallas Fed Manufacturing Survey shows contraction in November
Texas factory activity decreased in November, according to business executives responding to the Texas Manufacturing Outlook Survey.
WSJ: Real Time Economics | WSJ: Real Time Economics OECD Growth Outlook, Country by Country
In its twice-yearly report on the global economic outlook, the OECD lowered its growth forecasts for the world’s largest economies, and said the euro zone has fallen into recession. It also warned that the bloc’s debt crisis, now affecting countries previously seen as safe havens, could “massively escalate economic disruption if not addressed.” Here are some country-by-country highlights:
Reports
NBER | Government Policy and Ownership of Financial Assets
Since World War II, direct stock ownership by households across the globe has largely been replaced by indirect stock ownership by financial institutions. We argue that tax policy is the driving force.
Market Watch | U.S.-China trade disputes get wider, hotter
Ten years into its tenure as a World Trade Organization member, the planet’s second-largest economy, China, has joined the United States in a game of finger-pointing.
National Journal | A Crude Hit to the Recovery
Simply put, American consumers paid a historically high premium for their gasoline. The economy suffered for it.
CNN: Money | Why Congress can't save the Postal Service
There's one thing that turns some Tea Party Republicans into government-job lovers like their Democratic rivals: Their neighborhood post office.
WSJ | Economic Outlook Slows for the Global Economy
The global economic outlook has deteriorated significantly, the Organization for Economic Cooperation and Development said Monday, as it urged the European Central Bank to act decisively to prevent the euro-zone sovereign debt crisis from deepening and possibly dragging the U.S. economy to the brink of recession.
Bloomberg | U.S. Home Prices Decline More Than Forecast
Residential real estate prices dropped more than forecast in the year ended September, showing the industry at the center of the 2008 financial crisis continues to struggle.
Market Watch | Consumer debt declines in third quarter
Consumer debt declined slightly during the third quarter as Americans continued to deleverage in the wake of the housing crisis, according to a study released Monday.
Bloomberg | Euro-Region Economic Confidence Falls to Two-Year Low: Economy
An index of executive and consumer sentiment in the euro area fell to 93.7 from 94.8 in October, the European Commission in Brussels said today. That’s the lowest since November 2009.
Politico | Fitch Ratings: ‘Negative’ outlook for U.S. credit rating
Following the failure of the supercommittee, the U.S. government’s AAA credit rating was placed on a “negative outlook” Monday by Fitch Ratings, indicating a more than 50 percent chance the country gets slapped with another downgrade in the next two years.
NYT | Crisis in Europe Tightens Credit Across the Globe
Europe’s worsening sovereign debt crisis has spread beyond its banks and the spillover now threatens businesses on the Continent and around the world.
USA Today | Donations inch back up after recession decline
Giving totaled $291 billion in 2010, according to the 2011 annual report by the Center on Philanthropy at Indiana University. That's up 3.8% from 2009 and follows two consecutive years of declines.
WSJ | Sweden Maintains Robust Growth
Economic output grew 4.6% in the three months through September, compared with the same period in 2010, the Swedish statistics agency said Tuesday. Economists had expected 3.8% growth.
Econ Comments
Washington Times | ROEMER: Still calling for big government
The threat and fear of tyranny created the idea of America. The authors of the Constitution realized that the power of a central government strong enough to protect our nation from outside threats had to be balanced with clear states’ rights and even clearer individual rights in order to maintain liberty, economic health and national welfare.
Washington Times | EDITORIAL: Debt dumps on Durban
Economic woes threaten cash for climate change.
Cato Institute | Should the Government Narrow the Income Gap?
In 2007, the top 1 percent received 23.5 percent of income according to economists Thomas Piketty and Emmanuel Saez, but only 17.1 percent of income according to the Congressional Budget Office.
Market Watch | 10 reasons the crisis isn’t over
Commentary: There may be a lot more bad news to come.
Blogs
Calculated Risk | Visible Existing Home Inventory declines 17% year-over-year in November
In a few months, the NAR is expect to release revisions for their existing home sales and inventory numbers for the last few years. The sales and inventory revisions will be down.
Cato @ Liberty | Apparently a Little Economics Education Does Work on Congress…
I’ve seen too many times, especially during my service as staff in the Senate, politicians support policies they have to know are harmful. So it always encouraging to see some evidence of Congress taking basic Economics into account.
Café Hayek | Nudging us to death
Richard Thaler and Cass Sunstein wrote Nudge, arguing for something they called libertarian paternalism, the idea that government rather than forcing us to do the right thing might “nudge” us in the right direction via program design or tax incentives.
Calculated Risk | New Home Prices: Average Lowest since 2003
As part of the new home sales report, the Census Bureau reported that the average price for new homes fell to the lowest level since September 2003.
Marginal Revolution | Marginal Revolution 6 ideas for the Ash Heap of History
Sadly, bank runs are alive and well. They first resurfaced in the United States with a run on money-market funds and on the so-called shadow banking system in 2008.
Calculated Risk | Dallas Fed Manufacturing Survey shows contraction in November
Texas factory activity decreased in November, according to business executives responding to the Texas Manufacturing Outlook Survey.
WSJ: Real Time Economics | WSJ: Real Time Economics OECD Growth Outlook, Country by Country
In its twice-yearly report on the global economic outlook, the OECD lowered its growth forecasts for the world’s largest economies, and said the euro zone has fallen into recession. It also warned that the bloc’s debt crisis, now affecting countries previously seen as safe havens, could “massively escalate economic disruption if not addressed.” Here are some country-by-country highlights:
Reports
NBER | Government Policy and Ownership of Financial Assets
Since World War II, direct stock ownership by households across the globe has largely been replaced by indirect stock ownership by financial institutions. We argue that tax policy is the driving force.
Health Care
News
National Journal | Report: Medicare Drug-Coverage Gap Shrinks
Health care reform legislation aims to phase out the gap by 2020. This year, seniors get a 50 percent discount on brand-name drugs, the AP reported. Next year, the discount on generics will be higher.
CNN: Money | Medicare in America: 'It has to get better'
Berwick's nomination faced opposition from conservatives who focused on, among other things, his praise of government-run British health care. Instead of being confirmed by the Senate, Berwick was given a temporary "recess" appointment by President Obama, which was scheduled to run out this year.
National Journal | Rising Medicaid Costs Contribute to States' Bleak Economic Future, Report Finds
“State budgets are certainly improving; however, growth is weak, and there is not enough money for all the bills coming in,” NASBO Executive Director Scott Pattison told The Post. “State officials will still be cutting some programs, and increases in funding for any program except for health care will be rare.”
National Journal | Report: Medicare Drug-Coverage Gap Shrinks
Health care reform legislation aims to phase out the gap by 2020. This year, seniors get a 50 percent discount on brand-name drugs, the AP reported. Next year, the discount on generics will be higher.
CNN: Money | Medicare in America: 'It has to get better'
Berwick's nomination faced opposition from conservatives who focused on, among other things, his praise of government-run British health care. Instead of being confirmed by the Senate, Berwick was given a temporary "recess" appointment by President Obama, which was scheduled to run out this year.
National Journal | Rising Medicaid Costs Contribute to States' Bleak Economic Future, Report Finds
“State budgets are certainly improving; however, growth is weak, and there is not enough money for all the bills coming in,” NASBO Executive Director Scott Pattison told The Post. “State officials will still be cutting some programs, and increases in funding for any program except for health care will be rare.”
Monetary
News
Bloomberg | Secret Fed Loans Gave Banks $13 Billion
The Federal Reserve and the big banks fought for more than two years to keep details of the largest bailout in U.S. history a secret. Now, the rest of the world can see what it was missing.
USA Today | Cost of items in '12 Days of Christmas' now top $100K
The price of partridges, pear trees and turtle doves has spiked this year, pushing the cost of every item mentioned in the carol "The Twelve Days of Christmas" above $100,000 for the first time.
Econ Comments
Fox Business | The Fed to Europe’s Rescue?
Whether Germany’s Angela Merkel decides to be Germany’s new Iron Chancellor or Merkel in the Middle may be beside the point, as the bond markets continue to deliver a negative verdict on the Eurozone crisis, with EU yields sticking stubbornly high and borrowing costs soaring.
WSJ | Europe's Currency Road to Nowhere
The euro has punished Southern Europe the way China's currency has hurt the United States.
Bloomberg | ECB Fails to Attract Sufficient Bids to Mop Up Liquidity From Buying Bonds
The European Central Bank failed to fully offset the extra liquidity created by its bond purchases for the first time in seven months, a sign of mounting tensions among euro-area banks.
AEI: American | Elastic Currency, With a Vengeance
An extraordinary government triangle now consists of the Fed, the Treasury, and the GSEs.
Blogs
WSJ: Real Time Economics | Failure to Extend Tax Cut Could Push Fed to Do QE3
Failure to extend the payroll-tax cut by year’s end could push the Federal Reserve into a third round of quantitative easing, says Barclays Capital chief U.S. economist Dean Maki.
Bloomberg | Secret Fed Loans Gave Banks $13 Billion
The Federal Reserve and the big banks fought for more than two years to keep details of the largest bailout in U.S. history a secret. Now, the rest of the world can see what it was missing.
USA Today | Cost of items in '12 Days of Christmas' now top $100K
The price of partridges, pear trees and turtle doves has spiked this year, pushing the cost of every item mentioned in the carol "The Twelve Days of Christmas" above $100,000 for the first time.
Econ Comments
Fox Business | The Fed to Europe’s Rescue?
Whether Germany’s Angela Merkel decides to be Germany’s new Iron Chancellor or Merkel in the Middle may be beside the point, as the bond markets continue to deliver a negative verdict on the Eurozone crisis, with EU yields sticking stubbornly high and borrowing costs soaring.
WSJ | Europe's Currency Road to Nowhere
The euro has punished Southern Europe the way China's currency has hurt the United States.
Bloomberg | ECB Fails to Attract Sufficient Bids to Mop Up Liquidity From Buying Bonds
The European Central Bank failed to fully offset the extra liquidity created by its bond purchases for the first time in seven months, a sign of mounting tensions among euro-area banks.
AEI: American | Elastic Currency, With a Vengeance
An extraordinary government triangle now consists of the Fed, the Treasury, and the GSEs.
Blogs
WSJ: Real Time Economics | Failure to Extend Tax Cut Could Push Fed to Do QE3
Failure to extend the payroll-tax cut by year’s end could push the Federal Reserve into a third round of quantitative easing, says Barclays Capital chief U.S. economist Dean Maki.
Taxes
News
Politico | Rob Portman holds out hope for tax reform
A week after the supercommittee’s collapse, Sen. Rob Portman said Monday he’ll unveil a corporate tax reform plan early next year that builds off a framework negotiated by the failed bipartisan deficit panel.
Econ Comments
Market Watch | Tax tips for the wealthy and the destitute
It’s not news that the supercommittee didn’t commit. We’re sitting here in November, once again, waiting for legislation that will or won’t extend certain tax benefits, like the 2% reduction in Social Security withholding.
Washington Times | RAHN: Tooth-fairy tax policy
High-tax advocates are either credulous or envious of wealthy.
Blogs
Hill: Floor Action Blog | Dems propose 3.25 percent tax on millionaires to offset payroll tax cut extension
Senate Democrats on Monday put forward a plan that would call for a 3.25 percent tax on modified adjusted gross income above $1 million in 2012, which would be used to pay for a payroll tax extension.
Politico | Rob Portman holds out hope for tax reform
A week after the supercommittee’s collapse, Sen. Rob Portman said Monday he’ll unveil a corporate tax reform plan early next year that builds off a framework negotiated by the failed bipartisan deficit panel.
Econ Comments
Market Watch | Tax tips for the wealthy and the destitute
It’s not news that the supercommittee didn’t commit. We’re sitting here in November, once again, waiting for legislation that will or won’t extend certain tax benefits, like the 2% reduction in Social Security withholding.
Washington Times | RAHN: Tooth-fairy tax policy
High-tax advocates are either credulous or envious of wealthy.
Blogs
Hill: Floor Action Blog | Dems propose 3.25 percent tax on millionaires to offset payroll tax cut extension
Senate Democrats on Monday put forward a plan that would call for a 3.25 percent tax on modified adjusted gross income above $1 million in 2012, which would be used to pay for a payroll tax extension.
Employment
News
WSJ | Japan Job Market Deteriorates
Japan's job market worsened in October, with the country's unemployment rate jumping to 4.5% from 4.1% in the previous month, the government said on Tuesday.
Econ Comments
Fox Business | From Part-time to Full-time: Escaping Underemployment
Since the recession began, the percentage of part-time workers in the American workforce has grown to nearly 20%.
WSJ | Recipe for Middle-Class Jobs
Brain Hubs' Like Austin, Texas, Create More Work for Less-Educated Residents.
Blogs
WSJ: Real Time Economics | How to Create Middle-Class Jobs in 435 Steps
One way companies are creating new middle-class jobs is by cutting up complicated intellectual tasks into smaller bits — much the same way factories created millions of middle-class jobs by reducing mass production into a sum of small tasks, as the Journal reported today.
WSJ | Japan Job Market Deteriorates
Japan's job market worsened in October, with the country's unemployment rate jumping to 4.5% from 4.1% in the previous month, the government said on Tuesday.
Econ Comments
Fox Business | From Part-time to Full-time: Escaping Underemployment
Since the recession began, the percentage of part-time workers in the American workforce has grown to nearly 20%.
WSJ | Recipe for Middle-Class Jobs
Brain Hubs' Like Austin, Texas, Create More Work for Less-Educated Residents.
Blogs
WSJ: Real Time Economics | How to Create Middle-Class Jobs in 435 Steps
One way companies are creating new middle-class jobs is by cutting up complicated intellectual tasks into smaller bits — much the same way factories created millions of middle-class jobs by reducing mass production into a sum of small tasks, as the Journal reported today.
Budget
News
WSJ | State Budgets Improve Slowly
Overall, state budgets are slated to rise 2.9% to $666.6 billion in the 2012 fiscal year, which started in July, according to a report to be released Tuesday by the National Governors Association and the National Association of State Budget Officers. That is the second consecutive annual increase but is still below the $687.3 billion states spent in 2008, their peak year.
Washington Times | White House: No U.S. bailout for Europe
The White House said Monday that U.S. taxpayers should not bear the burden of helping stabilize Europe’s economy, even as President Obama was hosting European Union leaders for a summit amid deepening concerns about the future of the euro.
WSJ | Budget Surplus 'Herculean' Task for Australia
The Australian government on Tuesday stuck to its goal of restoring its budget to surplus in the year starting July 1, slashing spending even as warnings on a European crisis mounted.
Econ Comments
CNN Money | Debt crisis must be solved in the open
With the United States moving rapidly toward a dangerous level of national debt, our elected officials must act to end the unsustainable path we're on.
Blogs
Calculated Risk | NY Fed Q3 Report on Household Debt and Credit
In general, the percent of delinquent debt is declining (there was a small increase in Q3), but what really stands out is the percent of debt 90+ days delinquent (Yellow, orange and red).
WSJ: Real Time Economics | Vital Signs: Savings Tick Up, Remain Low
The personal saving rate — the share of income left after spending and taxes — climbed to 3.5% in October from 3.3% in September.
WSJ | State Budgets Improve Slowly
Overall, state budgets are slated to rise 2.9% to $666.6 billion in the 2012 fiscal year, which started in July, according to a report to be released Tuesday by the National Governors Association and the National Association of State Budget Officers. That is the second consecutive annual increase but is still below the $687.3 billion states spent in 2008, their peak year.
Washington Times | White House: No U.S. bailout for Europe
The White House said Monday that U.S. taxpayers should not bear the burden of helping stabilize Europe’s economy, even as President Obama was hosting European Union leaders for a summit amid deepening concerns about the future of the euro.
WSJ | Budget Surplus 'Herculean' Task for Australia
The Australian government on Tuesday stuck to its goal of restoring its budget to surplus in the year starting July 1, slashing spending even as warnings on a European crisis mounted.
Econ Comments
CNN Money | Debt crisis must be solved in the open
With the United States moving rapidly toward a dangerous level of national debt, our elected officials must act to end the unsustainable path we're on.
Blogs
Calculated Risk | NY Fed Q3 Report on Household Debt and Credit
In general, the percent of delinquent debt is declining (there was a small increase in Q3), but what really stands out is the percent of debt 90+ days delinquent (Yellow, orange and red).
WSJ: Real Time Economics | Vital Signs: Savings Tick Up, Remain Low
The personal saving rate — the share of income left after spending and taxes — climbed to 3.5% in October from 3.3% in September.
Monday, November 28, 2011
General Economics
News
CNN: Money | Iran oil targeted by Obama sanctions
When President Obama upped the ante last week in U.S efforts to isolate Iran, he also laid the groundwork for measures that could cut off Iranian oil exports and cause a spike in crude prices.
CNN: Money | S&P downgrades Belgium
The rating change put Belgium's rating down one notch to AA. That's the S&P's fourth-highest rating is still investment grade. But the rating agency warned it is considering further cuts, assigning it a negative outlook.
USA Today | Retailers sue Fed, say debit card fees are still too high
A coalition of retail organizations filed a lawsuit Tuesday charging that the Federal Reserve failed to comply with a law requiring it to reduce fees banks charge retailers when consumers use debit cards.
CNN: Money | Savings rate rises in October
The boost in the savings rate came as incomes rose at a faster clip than spending. Personal income was up 0.4% in October, whereas consumers increased their spending only 0.1 during the month.
Econ Comments
Washington Times | LABRADOR & POMPEO: Era of energy subsidies is over
American consumers, not Congress, should choose best power sources.
Bloomberg | OECD Cuts Growth Forecasts, Blames Euro Crisis
The Organization for Economic Cooperation and Development said growing doubts about the survival of Europe’s monetary union has caused global growth to stall and represents the main risk to the world economy.
RCM | The Root Cause of Market Failure In Higher Education
Any program in which 60% of the graduates failed to find work for two consecutive years would face funding reductions until supply was brought back into balance with demand.
Washington Post | Privatize the nation’s mail delivery
Unfortunately, privatization collides with a belief sometimes deemed reactionary but nowadays characteristic of progressives. The belief is: In government, whatever is should forever be.
AEI | Entitlements not tax cuts widen income gap
What should be done about income inequality? That basic question underlies the arguments hashed out in the supercommittee and promises to be a central issue in the presidential campaign.
Investors.com | In Free Society, Wealth’s A Sign You're Doing Something Right
Billions of people benefited from safe and efficient lighting. Billions more were the ultimate beneficiaries of the computer, and untold billions benefited from healthier lives gained from access to tetracycline.
WSJ | What Housing Risk?
The FHA says there's nothing for taxpayers to worry about. Oh-oh.
Blogs
Daily Capitalist | What You Should Be Thankful For On Thanksgiving 2011
It is always easy to criticize things as we see them today, but we have to see where we came from before we do that.
AEI: American | Why there is a 70 percent chance of a U.S. recession
When year-over-year real GDP growth falls below 2 percent, recession follows within a year 70 percent of the time.
Café Hayek | The cause of the crisis
One standard narrative of the cause of the financial crisis coming from people generally on the left is that a free-market ideology blinded policy-makers.
Political Calculations | Lackluster GDP in 2011-Q3, More in 2011-Q4
The U.S. Bureau of Economic Analysis has revised its initial estimate of GDP in the third quarter of GDP downward. We've adjusted our GDP forecast for the fourth quarter of 2011 accordingly.
Calculated Risk | Unofficial Problem Bank list increases to 980 institutions
There were a number of changes to the Unofficial Problem Bank List as the OCC and FDIC released their enforcement actions for the past month this week. As a result, there were seven additions and four removals, which leave the list with 980 institutions with assets of $400.5 billion.
Cato @ Liberty | The Future of Growth
A new analysis warns that the Washington area doesn’t have nearly enough housing for the wave of new workers that will arrive in coming decades.
Reports
NBER | Ending "Too Big To Fail": Government Promises vs. Investor Perceptions
Can a government credibly promise not to bailout firms whose failure would have major negative systemic consequences? Our analysis of Korea's 1997-99 crisis, suggests an answer: No.
CBO | Estimated Impact of the American Recovery and Reinvestment Act on Employment and Economic Output from July 2011 Through September 2011
"During the third quarter of calendar year 2011, recipients reported, ARRA funded more than 400,000 full-timeequivalent (FTE) jobs.2 Those reports, however, do not
provide a comprehensive estimate of the law’s impact on U.S. employment, which could be higher or lower than the number of FTE jobs reported, for several reasons."
CNN: Money | Iran oil targeted by Obama sanctions
When President Obama upped the ante last week in U.S efforts to isolate Iran, he also laid the groundwork for measures that could cut off Iranian oil exports and cause a spike in crude prices.
CNN: Money | S&P downgrades Belgium
The rating change put Belgium's rating down one notch to AA. That's the S&P's fourth-highest rating is still investment grade. But the rating agency warned it is considering further cuts, assigning it a negative outlook.
USA Today | Retailers sue Fed, say debit card fees are still too high
A coalition of retail organizations filed a lawsuit Tuesday charging that the Federal Reserve failed to comply with a law requiring it to reduce fees banks charge retailers when consumers use debit cards.
CNN: Money | Savings rate rises in October
The boost in the savings rate came as incomes rose at a faster clip than spending. Personal income was up 0.4% in October, whereas consumers increased their spending only 0.1 during the month.
Econ Comments
Washington Times | LABRADOR & POMPEO: Era of energy subsidies is over
American consumers, not Congress, should choose best power sources.
Bloomberg | OECD Cuts Growth Forecasts, Blames Euro Crisis
The Organization for Economic Cooperation and Development said growing doubts about the survival of Europe’s monetary union has caused global growth to stall and represents the main risk to the world economy.
RCM | The Root Cause of Market Failure In Higher Education
Any program in which 60% of the graduates failed to find work for two consecutive years would face funding reductions until supply was brought back into balance with demand.
Washington Post | Privatize the nation’s mail delivery
Unfortunately, privatization collides with a belief sometimes deemed reactionary but nowadays characteristic of progressives. The belief is: In government, whatever is should forever be.
AEI | Entitlements not tax cuts widen income gap
What should be done about income inequality? That basic question underlies the arguments hashed out in the supercommittee and promises to be a central issue in the presidential campaign.
Investors.com | In Free Society, Wealth’s A Sign You're Doing Something Right
Billions of people benefited from safe and efficient lighting. Billions more were the ultimate beneficiaries of the computer, and untold billions benefited from healthier lives gained from access to tetracycline.
WSJ | What Housing Risk?
The FHA says there's nothing for taxpayers to worry about. Oh-oh.
Blogs
Daily Capitalist | What You Should Be Thankful For On Thanksgiving 2011
It is always easy to criticize things as we see them today, but we have to see where we came from before we do that.
AEI: American | Why there is a 70 percent chance of a U.S. recession
When year-over-year real GDP growth falls below 2 percent, recession follows within a year 70 percent of the time.
Café Hayek | The cause of the crisis
One standard narrative of the cause of the financial crisis coming from people generally on the left is that a free-market ideology blinded policy-makers.
Political Calculations | Lackluster GDP in 2011-Q3, More in 2011-Q4
The U.S. Bureau of Economic Analysis has revised its initial estimate of GDP in the third quarter of GDP downward. We've adjusted our GDP forecast for the fourth quarter of 2011 accordingly.
Calculated Risk | Unofficial Problem Bank list increases to 980 institutions
There were a number of changes to the Unofficial Problem Bank List as the OCC and FDIC released their enforcement actions for the past month this week. As a result, there were seven additions and four removals, which leave the list with 980 institutions with assets of $400.5 billion.
Cato @ Liberty | The Future of Growth
A new analysis warns that the Washington area doesn’t have nearly enough housing for the wave of new workers that will arrive in coming decades.
Reports
NBER | Ending "Too Big To Fail": Government Promises vs. Investor Perceptions
Can a government credibly promise not to bailout firms whose failure would have major negative systemic consequences? Our analysis of Korea's 1997-99 crisis, suggests an answer: No.
CBO | Estimated Impact of the American Recovery and Reinvestment Act on Employment and Economic Output from July 2011 Through September 2011
"During the third quarter of calendar year 2011, recipients reported, ARRA funded more than 400,000 full-timeequivalent (FTE) jobs.2 Those reports, however, do not
provide a comprehensive estimate of the law’s impact on U.S. employment, which could be higher or lower than the number of FTE jobs reported, for several reasons."
Health Care
News
National Journal | For Health Care, Americans Pay More and Get Less
The U.S. vastly outspends other countries on health care but still ranks low when it comes to the health status of its residents, according to a report comparing developed countries.
USA Today | Companies going to high-deductible health insurance plans
As workers enroll in health insurance for the new year across the USA, many are discovering their companies are moving to high-deductible health plans.
Fox News | Countdown Begins for Congress on 'Doc Fix'
It's become a symbol of sorts for the federal government's budget dysfunction: Unless Congress acts before Jan. 1, doctors will again face steep Medicare cuts that threaten to undermine health care for millions of seniors and disabled people.
Econ Comments
Washington Post | A grim diagnosis for our ailing health care system
Americans know that expensive medical care is squeezing non-health government programs and, through higher employer insurance costs, take-home pay. But they console themselves that U.S. health care “is the best in the world.”
National Journal | For Health Care, Americans Pay More and Get Less
The U.S. vastly outspends other countries on health care but still ranks low when it comes to the health status of its residents, according to a report comparing developed countries.
USA Today | Companies going to high-deductible health insurance plans
As workers enroll in health insurance for the new year across the USA, many are discovering their companies are moving to high-deductible health plans.
Fox News | Countdown Begins for Congress on 'Doc Fix'
It's become a symbol of sorts for the federal government's budget dysfunction: Unless Congress acts before Jan. 1, doctors will again face steep Medicare cuts that threaten to undermine health care for millions of seniors and disabled people.
Econ Comments
Washington Post | A grim diagnosis for our ailing health care system
Americans know that expensive medical care is squeezing non-health government programs and, through higher employer insurance costs, take-home pay. But they console themselves that U.S. health care “is the best in the world.”
Monetary
News
Bloomberg | Central Banks Ease Most Since 2009
Central banks across five continents are undertaking the broadest reduction in borrowing costs since 2009 to avert a global economic slump stemming from Europe’s sovereign-debt turmoil.
Bloomberg | Banks Step Up Warnings on Euro Breakup
Banks and ratings companies are sounding their loudest warnings yet that the euro area risks unraveling unless its guardians intensify efforts to beat the two-year-old sovereign debt crisis.
Politico | Report: Fed bailout neared $8T
The Federal Reserve committed nearly $8 trillion to save the nation’s financial system, according to a report by Bloomberg Markets Magazine that reveals previously unknown details of the staggering bailout.
Econ Comments
WSJ | How the Dollar Rules by Fiat
How did the dollar become the world's principal currency and what is its future?
Blogs
AEI: American | Will inflation cure Washington’s debt problems?
There’s been a recent bout of enthusiasm for higher inflation as a quick cure for too much debt. Cutting government spending is hard, after all.
Bloomberg | Central Banks Ease Most Since 2009
Central banks across five continents are undertaking the broadest reduction in borrowing costs since 2009 to avert a global economic slump stemming from Europe’s sovereign-debt turmoil.
Bloomberg | Banks Step Up Warnings on Euro Breakup
Banks and ratings companies are sounding their loudest warnings yet that the euro area risks unraveling unless its guardians intensify efforts to beat the two-year-old sovereign debt crisis.
Politico | Report: Fed bailout neared $8T
The Federal Reserve committed nearly $8 trillion to save the nation’s financial system, according to a report by Bloomberg Markets Magazine that reveals previously unknown details of the staggering bailout.
Econ Comments
WSJ | How the Dollar Rules by Fiat
How did the dollar become the world's principal currency and what is its future?
Blogs
AEI: American | Will inflation cure Washington’s debt problems?
There’s been a recent bout of enthusiasm for higher inflation as a quick cure for too much debt. Cutting government spending is hard, after all.
Taxes
News
CNN Money | Bush tax cuts: The real endgame
Congress has a way of waiting to the very last minute to resolve big issues, so December is usually a busy month on Capitol Hill. This year will be no exception. But next year? Next year will be no exception on steroids.
Econ Comments
Washington Times | MILLER: We need a holiday from stimulus
Mr. Obama’s latest scheme is to pay for another year of payroll-tax holiday by hiking taxes on small businesses and investors.
WSJ | America the Difficult
In tax compliance, the U.S. ranks 69 of 183 nations.
CNN Money | Bush tax cuts: The real endgame
Congress has a way of waiting to the very last minute to resolve big issues, so December is usually a busy month on Capitol Hill. This year will be no exception. But next year? Next year will be no exception on steroids.
Econ Comments
Washington Times | MILLER: We need a holiday from stimulus
Mr. Obama’s latest scheme is to pay for another year of payroll-tax holiday by hiking taxes on small businesses and investors.
WSJ | America the Difficult
In tax compliance, the U.S. ranks 69 of 183 nations.
Employment
News
WSJ | U.S. Job Market Shows Ills of Europe
As the U.S. tries to dodge the fallout from Europe's debt crisis, some economists are reaching a troubling conclusion: The American labor market is looking more European than ever.
Market Watch | Jobs, economy likely to show mild growth
The U.S. economy is likely to show further evidence of revival in a heavy week of data punctuated by the monthly jobs report.
WSJ | Help Wanted: In Unexpected Twist, Some Skilled Jobs Go Begging
Ferrie Bailey's job should be easy: hiring workers amid the worst stretch of unemployment since the Depression.
Econ Comments
WSJ | The Non-Green Jobs Boom
Forget 'clean energy.' Oil and gas are boosting U.S. employment.
Blogs
WSJ: Real Time Economics | Fate of 2012 Unemployment Extension Gets Cloudier
Jobless Americans are once again at risk of losing their extended unemployment benefits.
WSJ | U.S. Job Market Shows Ills of Europe
As the U.S. tries to dodge the fallout from Europe's debt crisis, some economists are reaching a troubling conclusion: The American labor market is looking more European than ever.
Market Watch | Jobs, economy likely to show mild growth
The U.S. economy is likely to show further evidence of revival in a heavy week of data punctuated by the monthly jobs report.
WSJ | Help Wanted: In Unexpected Twist, Some Skilled Jobs Go Begging
Ferrie Bailey's job should be easy: hiring workers amid the worst stretch of unemployment since the Depression.
Econ Comments
WSJ | The Non-Green Jobs Boom
Forget 'clean energy.' Oil and gas are boosting U.S. employment.
Blogs
WSJ: Real Time Economics | Fate of 2012 Unemployment Extension Gets Cloudier
Jobless Americans are once again at risk of losing their extended unemployment benefits.
Budget
News
CNN Money | Troubled Harrisburg now state's problem
A federal judge Wednesday dismissed a bankruptcy petition filed by Harrisburg's City Council, saying that it violated state law.
Washington Times | Occupy protests cost nation’s cities at least $13M
During the first two months of the nationwide Occupy protests, the movement that is demanding more out of the wealthiest Americans cost local taxpayers at least $13 million in police overtime and other municipal services, according to a survey by the Associated Press.
NY Times | California Bullet Train Project Advances Amid Cries of Boondoggle
In an unfortunate turn of timing, state officials announced this month that revenues this year were so far behind projections that California was likely to have to impose $2 billion in cuts in January.
Econ Comments
Washington Times | KUHNER: Croatia, the next Greece
Offer of EU membership is a Faustian bargain.
IBD | Mark Steyn: Bailing Out The Titanic With A Thimble
Now that the supercommittee's flopped out, "automatic" mandatory cuts to defense and discretionary spending are supposed to kick in — by 2013. But no doubt as that looming deadline looms the can of worms will be effortlessly kicked down the room another looming deadline or two.
Forbes | It's Time To Gut, Not Cut, The Federal Government
Committees and commissions aren’t necessary to diagnose America’s budget problem. Uncle Sam is spending far more than he takes in. Outlays always seem to increase—and always faster than the rate of inflation—no matter who is in power.
Blogs
Heritage Foundation | Supercommittee Failed, and Spending Is Still the Problem
...in 2021 the federal government will spend 26 percent of the economy, well in excess of its historical average of 20 percent.
WSJ: Real Time Economics | Number of the Week: Germany, France Not Immune to Debt Problems
37,700 euros: Euro zone debt per working-age person in 2011.
Marignal Revolution | Is it easy to guarantee Italian debt?
...there is not enough emphasis on public choice problems and the longer term and the forward-looking nature of markets. The Italian economy does not have per capita growth over the last twelve years, and it is increasingly thinkable it won’t have growth any time soon, even apart from recent problems with aggregate demand. Population is aging and shrinking and institutions remain dysfunctional.
NRO: The Corner | On Pension Reform in the States
Officially, some 41 percent of the pension promises made to state employees are unfunded, and in August the city of Central Falls filed for Chapter 9 bankruptcy protection, citing an $80 million unfunded pension liability.
CNN Money | Troubled Harrisburg now state's problem
A federal judge Wednesday dismissed a bankruptcy petition filed by Harrisburg's City Council, saying that it violated state law.
Washington Times | Occupy protests cost nation’s cities at least $13M
During the first two months of the nationwide Occupy protests, the movement that is demanding more out of the wealthiest Americans cost local taxpayers at least $13 million in police overtime and other municipal services, according to a survey by the Associated Press.
NY Times | California Bullet Train Project Advances Amid Cries of Boondoggle
In an unfortunate turn of timing, state officials announced this month that revenues this year were so far behind projections that California was likely to have to impose $2 billion in cuts in January.
Econ Comments
Washington Times | KUHNER: Croatia, the next Greece
Offer of EU membership is a Faustian bargain.
IBD | Mark Steyn: Bailing Out The Titanic With A Thimble
Now that the supercommittee's flopped out, "automatic" mandatory cuts to defense and discretionary spending are supposed to kick in — by 2013. But no doubt as that looming deadline looms the can of worms will be effortlessly kicked down the room another looming deadline or two.
Forbes | It's Time To Gut, Not Cut, The Federal Government
Committees and commissions aren’t necessary to diagnose America’s budget problem. Uncle Sam is spending far more than he takes in. Outlays always seem to increase—and always faster than the rate of inflation—no matter who is in power.
Blogs
Heritage Foundation | Supercommittee Failed, and Spending Is Still the Problem
...in 2021 the federal government will spend 26 percent of the economy, well in excess of its historical average of 20 percent.
WSJ: Real Time Economics | Number of the Week: Germany, France Not Immune to Debt Problems
37,700 euros: Euro zone debt per working-age person in 2011.
Marignal Revolution | Is it easy to guarantee Italian debt?
...there is not enough emphasis on public choice problems and the longer term and the forward-looking nature of markets. The Italian economy does not have per capita growth over the last twelve years, and it is increasingly thinkable it won’t have growth any time soon, even apart from recent problems with aggregate demand. Population is aging and shrinking and institutions remain dysfunctional.
NRO: The Corner | On Pension Reform in the States
Officially, some 41 percent of the pension promises made to state employees are unfunded, and in August the city of Central Falls filed for Chapter 9 bankruptcy protection, citing an $80 million unfunded pension liability.
Tuesday, November 22, 2011
General Economics
News
Market Watch | Tight budgets boost house-sharing
These aren’t just friends turned roommates. Couples, multigenerational families and people with no relationship to each other are joining the growing ranks of those who are in “doubled-up” households.
Politico | Chipping away at farmer payments
Left at the barn door, farm bill negotiators must now decide what can be salvaged from the supercommittee’s wreckage as they shift their focus toward producing their own stand-alone legislation before the current authorization bill expires next September.
CNBC | China Property Dip Sparks Bank Fears
The number of property transactions in China’s largest cities has fallen to dangerously low levels, according to regulatory documents obtained by the Financial Times.
Investors.com | Democrat Denial Of Impact Of Regulations On Economy Holds Back Robust U.S. Recovery
Brandishing misleading employer survey data, Senate leader Harry Reid claims there isn't "a single shred of evidence" regulations cause big economic harm. Even President Obama disagrees.
Econ Comments
CNN: Money | U.S. credit rating faces new scrutiny
The sovereign credit rating of the United States is under review by Fitch Ratings after a Congressional super committee failed to reach agreement on reducing the nation's budget deficit.
Blogs
Calculated Risk | Richmond Fed: Manufacturing activity stabilized in November
Manufacturing activity in the central Atlantic region stabilized in November following four months of contraction, according to the Richmond Fed's latest survey.
Café Hayek | Free the Market. Save Lives
The prohibition on human-kidney sales is a perfect example of uncompensated third-party harms – negative externalities – inflicted on innocent people by political decision-making.
WSJ: Real Time Economics | U.S. Could Be Facing Another Year of Uncertainty
It was a long shot to begin with. When the supercommittee was formed, the hope was that the 12 congressional members could defy long odds and come up with a creditable plan to cut the federal deficit over the next 10 years in order for the U.S. to avoid the chaos now going on in the euro zone.
WSJ: Real Time Economics | Consumers May Be Spending More, but They’re Not Happy About It
Consumers are spending more this year, but that doesn’t mean they’re happy about it.
Market Watch | Tight budgets boost house-sharing
These aren’t just friends turned roommates. Couples, multigenerational families and people with no relationship to each other are joining the growing ranks of those who are in “doubled-up” households.
Politico | Chipping away at farmer payments
Left at the barn door, farm bill negotiators must now decide what can be salvaged from the supercommittee’s wreckage as they shift their focus toward producing their own stand-alone legislation before the current authorization bill expires next September.
CNBC | China Property Dip Sparks Bank Fears
The number of property transactions in China’s largest cities has fallen to dangerously low levels, according to regulatory documents obtained by the Financial Times.
Investors.com | Democrat Denial Of Impact Of Regulations On Economy Holds Back Robust U.S. Recovery
Brandishing misleading employer survey data, Senate leader Harry Reid claims there isn't "a single shred of evidence" regulations cause big economic harm. Even President Obama disagrees.
Econ Comments
CNN: Money | U.S. credit rating faces new scrutiny
The sovereign credit rating of the United States is under review by Fitch Ratings after a Congressional super committee failed to reach agreement on reducing the nation's budget deficit.
Blogs
Calculated Risk | Richmond Fed: Manufacturing activity stabilized in November
Manufacturing activity in the central Atlantic region stabilized in November following four months of contraction, according to the Richmond Fed's latest survey.
Café Hayek | Free the Market. Save Lives
The prohibition on human-kidney sales is a perfect example of uncompensated third-party harms – negative externalities – inflicted on innocent people by political decision-making.
WSJ: Real Time Economics | U.S. Could Be Facing Another Year of Uncertainty
It was a long shot to begin with. When the supercommittee was formed, the hope was that the 12 congressional members could defy long odds and come up with a creditable plan to cut the federal deficit over the next 10 years in order for the U.S. to avoid the chaos now going on in the euro zone.
WSJ: Real Time Economics | Consumers May Be Spending More, but They’re Not Happy About It
Consumers are spending more this year, but that doesn’t mean they’re happy about it.
Health Care
News
National Journal | Health Leaders Prepare For Round Two Of Cuts
No matter what the outcome of the super committee’s deliberations, budget and policy experts anticipate Washington will quickly face the painful task of finding even more savings. They expect health spending—which makes up more than one-fifth of the federal budget—to be at the top of the list.
Politico | Last chance for Medicare, Medicaid reform? Nope
It would be easy to conclude that the supercommittee’s failure means the big, expensive health care entitlement programs — Medicare and Medicaid — are untouchable.
National Journal | HHS Singles Out Pennsylvania Insurer for Overcharging
The Health and Human Services Department singled out a Pennsylvania health insurer on Monday that it said hiked prices excessively, the first company it has identified under a new rate review process.
Econ Comments
Politico | Economic woes one way to curb health spending
The economic slump has put the brakes on health spending, which may bolster a conservative truism: When consumers become more sensitive to the cost of health care, they cut back.
National Journal | Health Leaders Prepare For Round Two Of Cuts
No matter what the outcome of the super committee’s deliberations, budget and policy experts anticipate Washington will quickly face the painful task of finding even more savings. They expect health spending—which makes up more than one-fifth of the federal budget—to be at the top of the list.
Politico | Last chance for Medicare, Medicaid reform? Nope
It would be easy to conclude that the supercommittee’s failure means the big, expensive health care entitlement programs — Medicare and Medicaid — are untouchable.
National Journal | HHS Singles Out Pennsylvania Insurer for Overcharging
The Health and Human Services Department singled out a Pennsylvania health insurer on Monday that it said hiked prices excessively, the first company it has identified under a new rate review process.
Econ Comments
Politico | Economic woes one way to curb health spending
The economic slump has put the brakes on health spending, which may bolster a conservative truism: When consumers become more sensitive to the cost of health care, they cut back.
Monetary
News
Bloomberg | Dodd-Frank May Hamper Policy Makers Shielding Banking System in a Crisis
Federal Reserve Chairman Ben S. Bernanke and fellow U.S. policy makers may find themselves hampered in restoring financial stability should the European debt crisis spread to America.
Reuters | World Bank: China faces Europe risk, soft landing possible
China's economy faces growing risks from Europe's sovereign debt crisis and from debt held by local Chinese governments but it could engineer a soft landing by easing monetary policy, the World Bank said on Tuesday.
Econ Comments
Cato Institute | Can Inflation Kickstart the Economy without Killing It?
Many prominent economists believe the Fed should stimulate the economy by committing to an inflation target like 5 percent, rather than the current 2 percent. These economists argue that higher expected inflation means a lower real interest rate which can stimulate investment and hiring, thereby speeding up the economic recovery.
Washington Times | RAHN: Making money disappear
Currency not tied to gold or other standard becomes worthless.
CNN: Money | Should you move out of the dollar?
After shedding almost a third of its value over the past decade, the U.S. dollar has exhibited a few sparks of its former glory in recent months. Spooked investors have moved back into the greenback amid fears that Europe's debt crisis could turn into a full-blown meltdown.
Blogs
Atlantic: Megan McArdle | Farage: The Euro Is a Failure
At this point, though, the roads to salvation seem pretty rocky. A eurobond might do the trick--but a really credible eurobond, with serious guarantees for large portions of the outstanding sovereign debt, would require a treaty modification that they don't have time to do.
Econlog | European Banks
A lot of economists would say that you cannot shrink those balance sheets without causing horrible macro effects. That view, in turn, would justify a bailout. I am a holdout against that view.
WSJ: Real Time Economics | Fed’s Lockhart Prefers Communications Changes to More QE
As the U.S. economy points to a “somewhat better performance,” a top Federal Reserve official on Monday said he prefers “enhancing” the communications strategy rather than other options, such as buying bonds.
Minyanville | US Economy: Time Running Out for Q3
To avoid a recession in the first quarter of 2012, the Federal Open Market Committee needs to do something spectacular without hesitation.
Bloomberg | Dodd-Frank May Hamper Policy Makers Shielding Banking System in a Crisis
Federal Reserve Chairman Ben S. Bernanke and fellow U.S. policy makers may find themselves hampered in restoring financial stability should the European debt crisis spread to America.
Reuters | World Bank: China faces Europe risk, soft landing possible
China's economy faces growing risks from Europe's sovereign debt crisis and from debt held by local Chinese governments but it could engineer a soft landing by easing monetary policy, the World Bank said on Tuesday.
Econ Comments
Cato Institute | Can Inflation Kickstart the Economy without Killing It?
Many prominent economists believe the Fed should stimulate the economy by committing to an inflation target like 5 percent, rather than the current 2 percent. These economists argue that higher expected inflation means a lower real interest rate which can stimulate investment and hiring, thereby speeding up the economic recovery.
Washington Times | RAHN: Making money disappear
Currency not tied to gold or other standard becomes worthless.
CNN: Money | Should you move out of the dollar?
After shedding almost a third of its value over the past decade, the U.S. dollar has exhibited a few sparks of its former glory in recent months. Spooked investors have moved back into the greenback amid fears that Europe's debt crisis could turn into a full-blown meltdown.
Blogs
Atlantic: Megan McArdle | Farage: The Euro Is a Failure
At this point, though, the roads to salvation seem pretty rocky. A eurobond might do the trick--but a really credible eurobond, with serious guarantees for large portions of the outstanding sovereign debt, would require a treaty modification that they don't have time to do.
Econlog | European Banks
A lot of economists would say that you cannot shrink those balance sheets without causing horrible macro effects. That view, in turn, would justify a bailout. I am a holdout against that view.
WSJ: Real Time Economics | Fed’s Lockhart Prefers Communications Changes to More QE
As the U.S. economy points to a “somewhat better performance,” a top Federal Reserve official on Monday said he prefers “enhancing” the communications strategy rather than other options, such as buying bonds.
Minyanville | US Economy: Time Running Out for Q3
To avoid a recession in the first quarter of 2012, the Federal Open Market Committee needs to do something spectacular without hesitation.
Subscribe to:
Posts (Atom)