News
Bloomberg | Euro-Area Economic Confidence Rises More Than Estimated
Economic confidence in the euro area increased more than economists forecast in December even as the 17-nation currency bloc remained mired in its second recession in four years.
Politico | New tech and government regs: A glaring divide
What happens here at the annual Consumer Electronics Show certainly doesn’t stay here, at least not as far as Washington is concerned.
Market Watch | Small-business sentiment edges up from lows: NFIB
A measure of small-business sentiment in December edged up but still was the second-worst reading since March 2010, the National Federation of Independent Business said Tuesday.
FOX Business | AIG may join bailout suit against U.S. government
American International Group Inc, the insurer rescued by the U.S. government in 2008 with a bailout that ultimately totaled $182 billion, may join a lawsuit against the government alleging the terms of the deal were unfair.
Bloomberg | GM Seen Holding U.S. Share After Slipping to 88-Year Low
General Motors Co. (GM) likely will maintain its position in the U.S. after its market share plunged to the lowest since Alfred P. Sloan’s first full year running the company.
WSJ | Apartment Rents Continue to Rise As Vacancies Fall
Apartment landlords continued to impose hefty rent increases as 2012 drew to a close, although there are some early indications they could be losing their leverage with tenants.
Econ Comments & Analysis
Real Clear Markets | 3 Ways Congress Can Boost Growth
The new tax law passed on January 1, before the 112th Congress adjourned, will slow American economic growth because it raised income taxes on most taxpayers.
CNBC | Income Inequality: Is It Good for Everyone?
Income inequality has been on the rise for three decades in the United States, according to the Congressional Budget Office, with the gap between the "haves" and "have-nots" currently at its widest point since 1967.
WSJ | The Foreclosure Shakedowns
Another search party has returned from the foreclosure litigation swamp. And once again, our brave regulatory first responders found few actual victims. But there is a virtue in Monday's $8.5 billion settlement between federal regulators and 10 giant banks over foreclosure practices. At least the regulators admit that most of the people due to receive compensation were never victimized.
WSJ | Chinese 'Currency Manipulation' Is Not the Problem
When things are not going well, it is common to seek scapegoats. In this vein, populists of various stripes allege that China manipulates the value of its currency to favor its exports and undercut American workers, particularly in manufacturing.
AOL | Subsidies for Big Oil?
The US government needs to stop giving subsidies to Big Oil! This is such a common rallying cry that few stop to consider what it really means.
NBER | The Asset Price Meltdown and the Wealth of the Middle Class
I find that median wealth plummeted over the years 2007 to 2010, and by 2010 was at its lowest level since 1969. The inequality of net worth, after almost two decades of little movement, was up sharply from 2007 to 2010.
Blogs
Library of Economics | Wage Rigidity in Of Human Bondage
When economists say "wage rigidity," they almost always mean downward wage rigidity. Nominal wages almost never come down. Yet in W. Somerset Maugham's Of Human Bondage, set in late 19th-century England, upward wage rigidity plays an interesting role in the plot.
Market Watch | Watch these six China investment themes for 2013: Deutsche Bank
Watch for a growth recovery in China this year, according to Deutsche Bank, which highlighted improvements for cement, construction and shipping companies.
