News
WSJ | Euro-Zone Economic Contraction Deepens
Concerns over the future of the euro deepened Thursday on more evidence of policy inertia and a fresh spate of dire economic data that showed some of the remaining supports for business activity in the 17-country euro zone splintering away.
Market Watch | 30-year mortgage rate hits record low of 3.78%
Mortgage rates hit record lows in the week ending May 24, with the 30-year fixed-rate mortgage average ticking down to 3.78% from 3.79% in the prior week, Freddie Mac said Thursday in its weekly report.
WSJ | U.K. Recession Deeper Than Expected
The U.K. economy slid even deeper into recession than previously thought in the first quarter, official statistics showed Thursday, piling additional pressure on the government to do more to spur growth.
Bloomberg | Europe Manufacturing Shrinks, German Confidence Drops
European manufacturing and services output dropped in May, German business confidence declined and Britain’s first-quarter contraction was deeper than previously estimated as the region’s economic slump worsened.
WSJ | Europe Girds for Greek Exit
European officials are stepping up contingency planning for a possible Greek exit from the euro zone, even as Europe's leaders struggled to overcome differences on how to resolve the currency bloc's crisis at a summit meeting here.
Market Watch | FDIC: Bank profits at highest level since 2007
Bank profits rose in the first quarter of 2012, reaching their highest quarterly levels since the second quarter of 2007, according to the Federal Deposit Insurance Corp.'s quarterly banking report, released Thursday.
Econ Comments & Analysis
Washington Times | J.P. Morgan’s risky business
Investment-services firm J.P. Morgan blew $2 billion on bad trades, and the total damage could rise to $5 billion. Though the Obama administration wants you to think otherwise, this is proof the market works.
WSJ | Why Oil Prices Will Keep Falling
The recent retreat in crude prices has surprised many experts, who were predicting steeply higher levels. The sanctions choking off Iranian exports and the ever-present elephant in the room—a possible shutdown of the Strait of Hormuz, where 20% of global crude traffic occurs—were pushing prices up.
NBER | Ricardo's Theory of Comparative Advantage: Old Idea, New Evidence
When asked to name one proposition in the social sciences that is both true and non-trivial, Paul Samuelson famously replied: 'Ricardo's theory of comparative advantage'. Truth, however, in Samuelson's reply refers to the fact that Ricardo's theory of comparative advantage is mathematically correct, not that it is empirically valid.
AEI | Dodd-Frank's too-big-to-fail dystopia
With the recent publication of its final rule, the federal government's Financial Stability Oversight Council is now in position to designate certain nonbank firms as "systemically important financial institutions" (SIFIs).
Blogs
Economist | Stamp duty
As many newspaper owners have found out, it is extremely hard to make money by selling something that someone else is giving away. Postal services around the world have struggled to adapt since the the arrival of e-mail, often because they are tangled up in politics.
CATO | Diversity & Choice or Regulation & Monopoly?
Parents and taxpayers should have a diverse array of choices, and a large and diverse collection of scholarship organizations is essential for achieving that.
Heritage Foundation | The California Conundrum: New, Costly High-Speed Rail vs. Massive Budget Deficit
What do $16 billion and $68.4 billion have in common, other than the fact that each of these figures dwarfs JPMorgan Chase’s recent loss? The former is how deep in the red the California state budget sits currently. The latter is the latest in a series of roller-coasting cost estimates for the state’s controversial high-speed rail (HSR) project, which is funded in part by the federal government.
Reason Foundation | States and Cities Going Private With Infrastructure Investment
As public debts grow, cities and states simultaneously face pressing needs to repair and modernize critical infrastructure assets that can't wait if citizens hope to keep goods and services moving in the economy.
Economist | Fiscal cliffs, multipliers, and the myth of central bank independence
The cryptic phrase "fiscal cliff" is creeping into news reports and economic analyses (including our own). Alongside "grexit" and "hard landing" it lurks as a mysterious and malevolent force waiting to wreak havoc on the global economy. The fiscal cliff is an American afflication.
