News
Politico | Keystone Pipeline fans, foes make their cases
With a decision on the Keystone XL oil pipeline looming, supporters and opponents are putting everything on the table, fighting tooth and nail for the public’s — and the president’s — attention.
Market Watch | Europe faces threat of full-fledged depression
“Depression” isn’t the word usually used to describe the euro-zone economy, but it may become increasingly appropriate as hopes for a recovery give way to fears of an extended and destructive downturn that policy makers seem unable to halt.
Washington Times | Gold rush over? Investors rush to dump precious metal as prices drop to 2-year lows
Investors are rushing to dump gold funds as prices for the precious metal dropped to two-year lows and central bank reserves lost $560 billion in value, various media reported.
CNBC | Zandi Sees Benefits From 'Targeted' Mortgage Reduction
Mark Zandi, the chief economist at Moody's Analytics, who's reportedly the front-runner to become the White House's next housing czar, said there were benefits to mortgage writedowns for underwater homeowners but admitted there were also risks from such a move.
Econ Comments & Analysis
Bloomberg | U.S. Amasses Data on 10 Million Consumers as Banks Object
The new U.S. consumer finance watchdog is gearing up to monitor how millions of Americans use credit cards, take out mortgages and overdraw their checking accounts. Their bankers aren’t happy about it.
Washington Times | Strength in numbers
The immigration reform debate has begun. With the release of a framework for Senate legislation, voices are being heard on national security (especially on the southern border), legal issues (protection for employers who attempt to follow hiring laws), the future of the undocumented in the United States, and sector concerns (high-tech and agriculture).
AEI | How fast can the economy grow?
Discussions about the economy tend to focus much more on the Fed’s latest program to stimulate spending and the drama on Capitol Hill than on the potential for the economy to generate higher income over the long haul.
Blogs
Market Watch | The spreadsheet error in Reinhart and Rogoff’s famous paper on debt sustainability
It’s a factoid trotted out almost any time a serious debate breaks out about the sustainability of debt. Once a country gets past 90% on the public debt-to-GDP ratio, the economy will suffer. (The U.S. ratio was 73% at the end of 2012.)
WSJ | Reinhart-Rogoff Response to Critique
We literally just received this draft comment, and will review it in due course. On a cursory look, it seems that that Herndon Ash and Pollen also find lower growth when debt is over 90% (they find 0-30 debt/GDP , 4.2% growth; 30-60, 3.1 %; 60-90, 3.2%,; 90-120, 2.4% and over 120, 1.6%).
