News
Market Watch | December trade deficit at widest in six months
The trade deficit widened in December to a six-month high, the Commerce Department said Friday, as the pickup in the U.S. economy attracted more imported goods.
WSJ | Greece Sets Austerity Plan
Greece's political leaders agreed on unpopular budget, wage and pension cuts that moved Europe to the verge of approving a new bailout to stave off a messy Greek debt default.
NY Times | Education Gap Grows Between Rich and Poor, Studies Say
The achievement gap between rich and poor children is widening, a development that threatens to dilute education’s leveling effects.
Washington Times | Government announces $25 billion deal on mortgage abuses
The Obama administration and 49 states announced on Thursday a record $25 billion mortgage settlement with the nation’s five largest banks - the president’s latest attempt to help homeowners and halt the still-sagging housing market’s drag on the economy.
CNN Money | 30-year mortgage rate holds at record low
The 30-year fixed rate held steady at an average of 3.87% for the week ending February 9, the lowest rate ever recorded in the 40-year history of the Freddie Mac Primary Mortgage Market Survey. That compares with the 5.05% rate recorded at the same time a year ago.
Bloomberg | U.S. Michigan Consumer Sentiment Index Falls
Confidence among U.S. consumers declined more than forecast in February from the highest level in almost a year as rising gasoline prices began to stress household budgets.
USA Today | Trade deficit widens to $49 billion in December
U.S. exports to Europe rose at a healthy clip in December, a sign that the critical U.S. trading partner continues to buy American goods despite its weakened economy.
CNN Money | Banks may finally improve foreclosure practices
The country's largest mortgage servicers will now have to follow a strict protocol when trying to foreclose on a delinquent borrower, thanks to a $26 billion mortgage settlement spearheaded by state attorneys general.
FOX News | 13,000 is next Dow milestone, with record in sight
Now the Dow is within reach of the rarefied 13,000 mark — a level it hasn't seen since May 2008, four months before the financial system almost came apart.
Econ Comments & Analysis
Real Clear Markets | Economics: The 'Science' of Hubristic Hope
Last week's payroll report had me thinking of Alexander Pope's 1733 "Essay on Man", particularly the well-known line of "Hope springs eternal in the human breast."
WSJ | What's the Hold-Up on Alaskan Oil?
Finally, some welcome news from Washington: With a bipartisan voice, the House Natural Resources Committee passed H.R. 7, the American Energy Infrastructure & Jobs Act.
WSJ | Dodd-Frank and the Myth of 'Interconnectedness'
In a report last week, Treasury Secretary Tim Geithner noted that the Financial Stability Oversight Council will name the first "nonbank systemically important financial institutions" this year.
WSJ | $25 Billion Bank Job
Obama Administration officials and various state Attorneys General looked gleeful yesterday announcing a $25 billion settlement with five big tobacco—er, banks—and why not?
City Journal | Farewell to the Free Market?
In the years leading up to 2007, the rules necessary to govern a flourishing market economy broke down, producing a financial and economic crisis. Rather than responding to the crisis by fixing those rules, the West aggressively repudiated market economics, and the repudiation continues to this day.
Blogs
Marginal Revolution | How large is the output gap really?
There is still not enough talk of wealth effects in current macro debates, as they are invoked only selectively.
Atlantic | Will Inequality Keep Getting Worse?
I think the answer at the moment is that we simply don't know--I'm not sure there's empirical reason to prefer one story or the other. I do think that we should be wary of confident extrapolations in either direction.
WSJ | Incomes Rebound, but Still Have Ground to Make Up
Americans saw their incomes rise steadily at the end of 2011 but have yet to make up a good deal of ground lost during the downturn and recovery.
Marginal Revolution | What else predicts mobility?
But what about all the other potential reasons, beyond what their Gini Coefficient was in 1985, for varying levels of social mobility between countries as diverse as Japan, France, and New Zealand?
Political Calculations | Using Miles to Measure Recessions
Can we use the odometers in the vehicles driven by millions of Americans to tell if the United States is experiencing an economic recession?
CATO | Data in New World Bank Report Shows that Large Public Sectors Reduce Economic Growth
When Ronald Reagan said that big government undermined the economy, some people dismissed his comments because of his philosophical belief in liberty.
CATO | Questions and Thoughts on the Mortgage Settlement
If you missed the news (Obama actually made a “big” speech about it), the federal government, along with 49 state AGs, reached a settlement with the largest mortgage servicers over servicing violations.
