News
CNN Money | Foreclosure deal has 40 states, but others balk
More than 40 states have signed on to a draft settlement with the nation's largest banks aimed at helping homeowners struggling with loans bigger than the value of their homes.
Market Watch | German December industrial output falls 2.9%
Industrial output in Germany unexpectedly plunged by a seasonally-adjusted 2.9% in December, the economics ministry reported Tuesday, after an upwardly-revised reading of unchanged in November.
CNN Money | Obama vs. Reagan: A tale of two recoveries
Faced with a strong jobs report Friday, Republicans tried out a new rhetorical message: This isn't a disaster, but Ronald Reagan could have done better.
Bloomberg | Farmers Plan Biggest Crops Since 1984
U.S. farmers will plant the most acres in a generation this year, led by the biggest corn crop since World War II, taking advantage of the highest agricultural prices in at least four decades.
Econ Comments & Analysis
Washington Times | Obama’s cash for condos
Though Fannie Mae and Freddie Mac sparked the housing collapse that crippled the economy, President Obama now wants them to play an even greater role.
Bloomberg | Americans Gaining Energy Independence
The U.S. is the closest it has been in almost 20 years to achieving energy self-sufficiency, a goal the nation has been pursuing since the 1973 Arab oil embargo triggered a recession and led to lines at gasoline stations.
New Republic | Stop Feeling Sorry for the Middle Class! They’re Doing Just Fine.
Commentators were right to point out that Mitt Romney committed a flagrant gaffe last week. Unfortunately, they were only half-correct in identifying the offense.
NBER | International Policy Coordination: The Long View
This paper places current efforts at international economic policy coordination in historical perspective.
Blogs
Heritage Foundation | Time for a Georgia-U.S. Free Trade Agreement
President Obama and President of the Republicof Georgia Mikheil Saakashvilirecently announced that the two countries should start free-trade negotiations. Let’s hope both presidents are serious.
CATO | CBO Forecast Accuracy
I noted last week that CBO’s new outlook assumes substantially lower interest rates, which appears to produce more than a trillion dollars of savings over the next decade.
National Review | The E.U. Contagion
It is hard to tell exactly how the European crisis will play out. I think we can predict that if Greece defaults on its debt, then Portugal is likely to be next.
The American | How Dodd-Frank is a big obstacle to closing down Fannie and Freddie
On Friday, Treasury Secretary Geithner said that the Obama administration is preparing to move forward with closing Fannie Mae and Freddie Mac and bringing back a robust private housing market. Ironically, the secretary’s statement was made almost one year to the day after the administration released its white paper on reform of the housing market.
Calculated Risk | The Housing Bottom is Here
There are two bottoms for housing. The first is for new home sales, housing starts and residential investment. The second bottom is for prices. Sometimes these bottoms can happen years apart.
