News
CNN Money | Startups make up a smaller share of U.S. businesses
In the land of liberty and opportunity, startups continue to make up a smaller share of the American business landscape
Bloomberg | Consumer Comfort in U.S. Declines to Lowest Level in Two Months
Consumer confidence dropped last week to a two-month low as more Americans grew concerned about their personal finances.
Market Watch | U.S. productivity drops 0.5% in first quarter
The productivity of U.S. businesses and workers fell less than expected in the three months through March but dropped for the first time in three quarters, based on a preliminary government reading issued Thursday.
WSJ | Euro-Zone Economic Woes Deepen
Business activity in the euro zone's manufacturing sector shrank at the sharpest pace in almost three years in April, according to a closely watched survey, and the currency area's unemployment rate rose in March to match a record, as 169,000 people lost their jobs, indicating the region's economy is likely to continue to contract in the second quarter.
Bloomberg | Small-Cap Tech May Lure Investors Bullish on Growth
The investment outlook for small-cap technology companies is improving as cheap valuations and conservative earnings estimates make them more attractive, after being weighed down by concerns about the economy.
Market Watch | 30-year mortgage rate hits record low of 3.84%
Mortgage rates are at record lows, with the 30-year fixed-rate mortgage average declining to 3.84% in the week ending May 3 from 3.88% in the prior week, Freddie Mac said Thursday in its weekly report.
Econ Comments & Analysis
CBO | How Would Proposed Fuel Economy Standards Affect the Highway Trust Fund?
A Proposed Rule to Tighten Fuel Economy Standards Would Gradually Decrease Fuel Consumption, Eventually Reducing Revenues from the Gasoline Tax by 21 Percent in 2040
Politico | China financial reform is critical to U.S. growth
Senior U.S. and Chinese officials are due to sit down in Beijing on Thursday for the U.S.-China Strategic and Economic Dialogue. Despite the diplomatic tensions during negotations about a leading dissident, Chen Guangcheng, preparation for the dialogue continued.
Washington Post | The fallacy of blaming oil ‘speculators’
We should exorcise the politically convenient notion that high oil prices result from the market maneuvers of greedy “speculators.” It’s convenient because it suggests that a solution to high pump prices — or a partial solution — is to banish the offending speculators from the marketplace. That’s fantasy.
Real Clear Markets | How to Reduce the Government's Trillions In Housing Credit Risk
Over $5.8 trillion in home mortgage debt in the United States is now either owned or guaranteed by a federal entity - be it the Federal Housing Administration (FHA), Ginnie Mae, the Veterans Housing Administration, or one of the two government-sponsored enterprises (GSEs) under "conservatorship" since 2008.
Investors | Many Who Portray Themselves As Part Of The 99% Live Like The 1%
President Barack Obama and Wall Street occupiers, along with their allies in the mainstream media and on college campuses, have maintained an ongoing attack on high-income earners, people they call 1 percenters.
Washington Times | War on fossil fuels continues
The April 30 resignation of Environmental Protection Agency Regional Administrator Al Armendariz after he was caught telling the truth - that he wants to “crucify” companies he claims don’t comply with environmental laws - will do nothing to slow the Obama administration’s senseless war on fossil fuels.
The American | Why Aren’t Banks Lending to Small Business? Ask Bernanke.
On March 29, at a lecture at George Washington University, Federal Reserve Chairman Ben Bernanke innocuously remarked that lately “small businesses have … found it difficult to get credit.” Too bad that none of the students at the lecture thought to ask him why. A case can be made that the Fed is partially responsible.
Real Clear Markets | Public Pension Stimulus Nonsense
Breaking windows will stimulate the economy, according to a leading public pension advocacy group. Skeptical? The National Institute on Retirement Security (NIRS) has not literally endorsed breaking windows, but a report recently published by the organization relies on the same economic fallacy.
Washington Times | Folly and immorality of E15
As if E10 ethanol mandates aren’t folly enough, the Environmental Protection Agency (EPA) will now permit ethanol manufacturers to register as E15 gasoline suppliers.
Blogs
Tax Foundation | High-Tax Europe Heading into another Great Depression
About half the European continent is now technically back in recession, and when all the numbers come in it is very likely that France and Germany will be added to that list.
Library of Economics | The Top 0.1 Percent
Paul Krugman has a post today linking to an article in the New York Times magazine about a wealthy man named Edward Conard.
WSJ | Citigroup’s Orszag: Fix the Government’s Economic Models!
In a new column, Mr. Orszag says the models used by top regulators and economic policy makers made them think the storm brewing in the U.S. economy would be another dot.com bust–as a result they either looked the other way or figured they couldn’t do anything about it.
The American | Another study undermines Obama’s income inequality alarmism
President Obama explains it all. He and many liberal economists explain the Great Recession like this: Rising income inequality and stagnant incomes for the bottom 99% pushed workers to borrow to maintain their standard of living.
