News
CNN Money | Consumers pull back on spending
Consumers pulled back on spending in April as their income remained steady, according to a government report Friday.
Bloomberg | Chicago Index Unexpectedly Jumps to Highest Level in a Year
Business activity in the U.S. rebounded in May after declining for the first time in more than three years last month, a sign manufacturing may contribute to economic growth this quarter.
CNN Money | New portrait of China's 185 million seniors
Large numbers of elderly Chinese are living below the poverty line and suffering from physical problems or depression, according to a study published Friday by western and Chinese academics.
Market Watch | May UMich sentiment highest since 2007
The final May reading of the University of Michigan and Thomson Reuters consumer-sentiment index jumped to 84.5 - the highest level since July 2007 - from 76.4 in April, according to news reports.
Econ Comments & Analysis
Washington Times | Riches for unions, but not their retirees
Organized labor has long pointed to pensions as a key reason to join their unions, but many of those promised benefits are now in serious trouble. After decades of promising a secure retirement, unions need to chip in and protect their members’ pensions.
Washington Times | Recovery summer on the horizon, or another mirage?
Over the long, hard course of President Obama’s painfully slow, job-scarce, subpar economy, he may have set a record for persistent media reports that his shaky recovery was finally showing signs of strength.
Business Insider | The Government's Plan To Save Housing Will Cause People To Default Over And Over Again
On March 27, 2013, the Federal Housing Finance Administration (FHFA) announced the introduction of still another mortgage modification program. Entitled the Streamlined Modification Program, it was intended to enable distressed borrowers to more easily qualify for a modification.
Blogs
Library of Economics | The Subprime Crisis: Why Asymmetric Information Didn't Save Us
In the securitization process, lenders screen potential borrowers and originate mortgages, then package the mortgages for sale to outside investors. Yet investors cannot verify how carefully the screening is actually done.
Friday, May 31, 2013
Health Care
News
Politico | Obamacare health exchange sales strategy: Choices
About 90 percent of people who enter the health reform law’s exchanges next year will have at least five different insurance company options to choose from, according to new data released by the Obama administration on Thursday.
Econ Comments & Analysis
WSJ | A Welcome Boost in the Race for New Antibiotics
The members of the "I hate the pharmaceutical industry" club must be beside themselves. And the anti-big-government folks are probably not terribly happy either.
Washington Times | Stuck behind the Medicaid eight ball
When setting up Medicare as a parallel “earned-benefits” program to Social Security in 1965, Congress tacked onto the legislation — like an insurance rider — a secondary provision to help existing state programs provide medical assistance to a very small population: America’s most helpless and destitute.
Politico | Obamacare health exchange sales strategy: Choices
About 90 percent of people who enter the health reform law’s exchanges next year will have at least five different insurance company options to choose from, according to new data released by the Obama administration on Thursday.
Econ Comments & Analysis
WSJ | A Welcome Boost in the Race for New Antibiotics
The members of the "I hate the pharmaceutical industry" club must be beside themselves. And the anti-big-government folks are probably not terribly happy either.
Washington Times | Stuck behind the Medicaid eight ball
When setting up Medicare as a parallel “earned-benefits” program to Social Security in 1965, Congress tacked onto the legislation — like an insurance rider — a secondary provision to help existing state programs provide medical assistance to a very small population: America’s most helpless and destitute.
Monetary
Econ Comments & Analysis
Market Watch | Fed's Pianalto wants more open regulatory process
Greater transparency will help the Federal Reserve ensure financial stability, said Cleveland Fed President Sandra Pianalto on Friday. "I believe that providing enhanced information about financial firms and clearer expectations for the future actions of financial regulators can...make our financial stability policies more effective,"
WSJ | Fed Policy Is a Drag on Recovery
Former Federal Reserve Chairman Paul Volcker said in a speech to the Economic Club of New York on Wednesday that the Fed should not be asked to "accommodate misguided fiscal policies" and "will inevitably fall short." He outlined a preferred monetary policy based on orthodox central banking aimed at a stable currency in order to maximize employment. "Credibility is an enormous asset," he said. "Once earned, it must not be frittered away." Those words are true and timely.
Blogs
WSJ | Fed Not Constrained Amid Tame Inflation
Inflation is getting tamer, a development that will surely fuel the debate over the Federal Reserve‘s bond-buying.
Market Watch | Fed's Pianalto wants more open regulatory process
Greater transparency will help the Federal Reserve ensure financial stability, said Cleveland Fed President Sandra Pianalto on Friday. "I believe that providing enhanced information about financial firms and clearer expectations for the future actions of financial regulators can...make our financial stability policies more effective,"
WSJ | Fed Policy Is a Drag on Recovery
Former Federal Reserve Chairman Paul Volcker said in a speech to the Economic Club of New York on Wednesday that the Fed should not be asked to "accommodate misguided fiscal policies" and "will inevitably fall short." He outlined a preferred monetary policy based on orthodox central banking aimed at a stable currency in order to maximize employment. "Credibility is an enormous asset," he said. "Once earned, it must not be frittered away." Those words are true and timely.
Blogs
WSJ | Fed Not Constrained Amid Tame Inflation
Inflation is getting tamer, a development that will surely fuel the debate over the Federal Reserve‘s bond-buying.
Taxes
Econ Comments & Analysis
Real Clear Markets | It's Time to Abolish the Mortgage Interest Deduction
The Washington establishment remains impregnable to the simple truths of responsible financial management. This fact is no longer a secret for the vast majority of Americans, who, unfortunately for their own financial wellbeing, now follow the political class in support of policies that will weigh us down for decades to come.
Blogs
CATO | CBO’s Tax Expenditure Report Uses Wrong Benchmark, Overstates Loopholes
As a long-time advocate of tax reform, I’m not a fan of distortionary loopholes in the tax code. Ideally, we would junk the 74,000-page internal revenue code and replace it with a simple and fair flat tax - meaning one low rate, no double taxation, and no favoritism.*
Real Clear Markets | It's Time to Abolish the Mortgage Interest Deduction
The Washington establishment remains impregnable to the simple truths of responsible financial management. This fact is no longer a secret for the vast majority of Americans, who, unfortunately for their own financial wellbeing, now follow the political class in support of policies that will weigh us down for decades to come.
Blogs
CATO | CBO’s Tax Expenditure Report Uses Wrong Benchmark, Overstates Loopholes
As a long-time advocate of tax reform, I’m not a fan of distortionary loopholes in the tax code. Ideally, we would junk the 74,000-page internal revenue code and replace it with a simple and fair flat tax - meaning one low rate, no double taxation, and no favoritism.*
Employment
News
National Journal | Why Houston is America's #1 Job Creator
Texas is killing it. It dominated the recession, crushed the recovery, and in a new analysis of jobs recovered since the downturn, its largest city stands apart as the most powerful job engine in the country -- by far.
CNN Money | Eurozone unemployment hits record 12.2%
Unemployment in the troubled eurozone region hit a record high of 12.2% last month. The latest official data from Eurostat shows nearly 100,000 additional people were out looking for work in April compared with the previous month, when unemployment was pegged at 12.1%.
Econ Comments & Analysis
NBER | Do Extended Unemployment Benefits Lengthen Unemployment Spells? Evidence from Recent Cycles in the U.S. Labor Market
In response to the Great Recession, the availability of unemployment insurance (UI) benefits was extended to an unprecedented 99 weeks in many U.S. states in the 2009-2012 period.
National Journal | Why Houston is America's #1 Job Creator
Texas is killing it. It dominated the recession, crushed the recovery, and in a new analysis of jobs recovered since the downturn, its largest city stands apart as the most powerful job engine in the country -- by far.
CNN Money | Eurozone unemployment hits record 12.2%
Unemployment in the troubled eurozone region hit a record high of 12.2% last month. The latest official data from Eurostat shows nearly 100,000 additional people were out looking for work in April compared with the previous month, when unemployment was pegged at 12.1%.
Econ Comments & Analysis
NBER | Do Extended Unemployment Benefits Lengthen Unemployment Spells? Evidence from Recent Cycles in the U.S. Labor Market
In response to the Great Recession, the availability of unemployment insurance (UI) benefits was extended to an unprecedented 99 weeks in many U.S. states in the 2009-2012 period.
Budget
News
Fiscal Times | Your Guide to the Looming Battle over Student Loans
Congress has one month to reach an agreement before interest rates on new federally subsidized student loans double to 6.8 percent. For once, both Democrats and Republicans see the increase as a problem that needs to be solved. As expected, though, they have very different solutions, each with their own benefits and shortcomings.
Econ Comments & Analysis
Real Clear Markets | Don't Let Them Fool You, We Still Have Debt Problems
Your uncle, Sam, has ignored his chronic health condition - let's say he's diabetic - for a long time. Then he suddenly has a heart attack, followed by a long, slow painful recovery. As he is recovering, he is feeling good about his health - after all, he got though a crisis. But he is not actually healthier than he was before. He's still diabetic, and now he has to deal with the cautions of being a heart attack victim as well.
AEI | On the road to a Japanese debt crisis
Barely six months after its launch, something seems have gone awry with Abenomics, Japan's bold new economic policy experiment to kick start the ailing Japanese economy. For, despite its early successes, rather than bringing down long-term government borrowing rates as intended, Abenomics seems to be increasing those borrowing rates.
Blogs
WSJ | Government Potholes on Road to Recovery
Although Thursday’s revisions to first-quarter U.S. gross domestic product lowered the top-line annualized growth rate, the details offer a better profile for future growth. That’s because the slightly slower pace — now 2.4% from 2.5% reported earlier — largely reflects less inventory accumulation over the winter. According to the Commerce Department‘s new figures, real inventories grew by $38.3 billion last quarter, less than the $50.3 billion reported a month ago.
Fiscal Times | Your Guide to the Looming Battle over Student Loans
Congress has one month to reach an agreement before interest rates on new federally subsidized student loans double to 6.8 percent. For once, both Democrats and Republicans see the increase as a problem that needs to be solved. As expected, though, they have very different solutions, each with their own benefits and shortcomings.
Econ Comments & Analysis
Real Clear Markets | Don't Let Them Fool You, We Still Have Debt Problems
Your uncle, Sam, has ignored his chronic health condition - let's say he's diabetic - for a long time. Then he suddenly has a heart attack, followed by a long, slow painful recovery. As he is recovering, he is feeling good about his health - after all, he got though a crisis. But he is not actually healthier than he was before. He's still diabetic, and now he has to deal with the cautions of being a heart attack victim as well.
AEI | On the road to a Japanese debt crisis
Barely six months after its launch, something seems have gone awry with Abenomics, Japan's bold new economic policy experiment to kick start the ailing Japanese economy. For, despite its early successes, rather than bringing down long-term government borrowing rates as intended, Abenomics seems to be increasing those borrowing rates.
Blogs
WSJ | Government Potholes on Road to Recovery
Although Thursday’s revisions to first-quarter U.S. gross domestic product lowered the top-line annualized growth rate, the details offer a better profile for future growth. That’s because the slightly slower pace — now 2.4% from 2.5% reported earlier — largely reflects less inventory accumulation over the winter. According to the Commerce Department‘s new figures, real inventories grew by $38.3 billion last quarter, less than the $50.3 billion reported a month ago.
Thursday, May 30, 2013
General Economics
News
Bloomberg |
Foreclosure Deals Drop 22% as Rising Prices Delay Sales
A total of 190,121 homes in some stage of foreclosure or taken by banks were sold this year through March 31, down 18 percent from the previous three months, the data seller said today.
Fox Business | Pending Home Sales Make Smaller-than-Expected Climb
Contracts to buy previously-owned U.S. homes rose to their highest level in three years in April, but a shortage of properties for sale could slow down the momentum.
Bloomberg |
Euro-Area Economic Confidence Climbs Amid Recession
An index of executive and consumer sentiment rose to 89.4 from 88.6 in April, the European Commission in Brussels said today. That’s in line with the median estimate in a Bloomberg News survey of 33 economists.
Market Watch | Federal mortgage modification program extended
A federal program that helps troubled homeowners receive modified mortgages is being extended by two years, and will run to the end of 2015, administration officials said Thursday.
Econ Comments & Analysis
WSJ | Exporting Natural Gas Will Stabilize U.S. Prices
Limiting LNG exports will have the unintended effect of limiting supply.
CNN: Money | A housing bubble era loan makes a comeback, with a twist
More and more people are borrowing against their brokerage accounts to buy condos and expand their businesses. That's not reassuring.
WSJ | What Would Milton Friedman Say?
Immigration opponents often try to claim the famed economist as an ally. They're mistaken.
RCM | In the World's Richest Nation, Bridges Shouldn't Collapse
Public-private partnerships have the potential to revolutionize bridge, tunnel, and road operation in the United States. Yet only thirty-two states currently have laws on the books that enable their use.
Bloomberg |
Foreclosure Deals Drop 22% as Rising Prices Delay Sales
A total of 190,121 homes in some stage of foreclosure or taken by banks were sold this year through March 31, down 18 percent from the previous three months, the data seller said today.
Fox Business | Pending Home Sales Make Smaller-than-Expected Climb
Contracts to buy previously-owned U.S. homes rose to their highest level in three years in April, but a shortage of properties for sale could slow down the momentum.
Bloomberg |
Euro-Area Economic Confidence Climbs Amid Recession
An index of executive and consumer sentiment rose to 89.4 from 88.6 in April, the European Commission in Brussels said today. That’s in line with the median estimate in a Bloomberg News survey of 33 economists.
Market Watch | Federal mortgage modification program extended
A federal program that helps troubled homeowners receive modified mortgages is being extended by two years, and will run to the end of 2015, administration officials said Thursday.
Econ Comments & Analysis
WSJ | Exporting Natural Gas Will Stabilize U.S. Prices
Limiting LNG exports will have the unintended effect of limiting supply.
CNN: Money | A housing bubble era loan makes a comeback, with a twist
More and more people are borrowing against their brokerage accounts to buy condos and expand their businesses. That's not reassuring.
WSJ | What Would Milton Friedman Say?
Immigration opponents often try to claim the famed economist as an ally. They're mistaken.
RCM | In the World's Richest Nation, Bridges Shouldn't Collapse
Public-private partnerships have the potential to revolutionize bridge, tunnel, and road operation in the United States. Yet only thirty-two states currently have laws on the books that enable their use.
Health Care
News
WSJ | How 3 Small Firms Are Coping With Health Law
Small employers across the U.S. are struggling to get a handle on their health-care costs under the Affordable Care Act. Many of them say they expect their operating expenses to jump in 2014, when the law's employee health-insurance requirements take effect.
Blogs
Heritage Foundation | The IRS, Obamacare, and You: The Complexity
The many federal bureaucrats working on Obamacare implementation within the IRS stand at the center of an intricate web of government and regulation that will ensnare all Americans in its grasp.
WSJ | How 3 Small Firms Are Coping With Health Law
Small employers across the U.S. are struggling to get a handle on their health-care costs under the Affordable Care Act. Many of them say they expect their operating expenses to jump in 2014, when the law's employee health-insurance requirements take effect.
Blogs
Heritage Foundation | The IRS, Obamacare, and You: The Complexity
The many federal bureaucrats working on Obamacare implementation within the IRS stand at the center of an intricate web of government and regulation that will ensnare all Americans in its grasp.
Monetary
Econ Comments & Analysis
Washington Times | SAYEGH: Three years of Dodd-Frank’s broken promises
Predictions of consumer pain have come true.
CNN: Money | Volcker: Fed will 'fall short'
The Federal Reserve has been asked to "do too much" to heal the U.S. economy and "will inevitably fall short," former Fed Chairman Paul Volcker cautioned Wednesday.
Blogs
WSJ: Real Time Economics | ECB: Financial Sector In Best Condition Since 2011
The euro zone’s financial sector is in better health now than at any time in the last two years, the European Central Bank said Wednesday in its half-yearly Financial Stability Review.
Washington Times | SAYEGH: Three years of Dodd-Frank’s broken promises
Predictions of consumer pain have come true.
CNN: Money | Volcker: Fed will 'fall short'
The Federal Reserve has been asked to "do too much" to heal the U.S. economy and "will inevitably fall short," former Fed Chairman Paul Volcker cautioned Wednesday.
Blogs
WSJ: Real Time Economics | ECB: Financial Sector In Best Condition Since 2011
The euro zone’s financial sector is in better health now than at any time in the last two years, the European Central Bank said Wednesday in its half-yearly Financial Stability Review.
Taxes
News
CNN: Money | Top 1% get big bang from tax breaks
There are more than 200 tax breaks in the U.S. tax code, and the top 10 for individuals are by far the most expensive. How expensive? They will cost federal coffers $12 trillion over the next decade.
Econ Comments & Analysis
Investors | Robin Hood' Tax Will Not Make Markets More Stable And Might Hurt Economic Growth
The proponents of the tax argue that an FTT will reduce speculative and irresponsible trading, which was allegedly behind both the financial crisis of 2008 and the sovereign crisis in Europe. But even if one believes that the ability to trade instantly, at practically zero cost, has helped to spread the panic, an FTT is not going to help.
Mercatus Center | The High Costs of a Terrible Tax Code
The Treasury forgoes approximately $450 billion per year in unreported taxes. Worse, Americans face up to nearly $1 trillion annually in hidden tax-compliance costs. And according to the IRS, taxpayers spent more than six billion hours in 2011 complying with the tax code.
NBER | The R&D Tax Credit in France: Assessment and Ex-Ante Evaluation of the 2008 Reform
This article presents an econometric analysis of the direct effects of the R&D tax credit (RTC) on private R&D in France and proposes an ex ante evaluation of the major reform implemented in 2008.
CBO | The Distribution of Major Tax Expenditures in the Individual Income Tax System
This report examines how 10 of the largest tax expenditures in the individual income tax system in 2013 are distributed among households with different amounts of income. Those expenditures are grouped into four categories:
CNN: Money | Top 1% get big bang from tax breaks
There are more than 200 tax breaks in the U.S. tax code, and the top 10 for individuals are by far the most expensive. How expensive? They will cost federal coffers $12 trillion over the next decade.
Econ Comments & Analysis
Investors | Robin Hood' Tax Will Not Make Markets More Stable And Might Hurt Economic Growth
The proponents of the tax argue that an FTT will reduce speculative and irresponsible trading, which was allegedly behind both the financial crisis of 2008 and the sovereign crisis in Europe. But even if one believes that the ability to trade instantly, at practically zero cost, has helped to spread the panic, an FTT is not going to help.
Mercatus Center | The High Costs of a Terrible Tax Code
The Treasury forgoes approximately $450 billion per year in unreported taxes. Worse, Americans face up to nearly $1 trillion annually in hidden tax-compliance costs. And according to the IRS, taxpayers spent more than six billion hours in 2011 complying with the tax code.
NBER | The R&D Tax Credit in France: Assessment and Ex-Ante Evaluation of the 2008 Reform
This article presents an econometric analysis of the direct effects of the R&D tax credit (RTC) on private R&D in France and proposes an ex ante evaluation of the major reform implemented in 2008.
CBO | The Distribution of Major Tax Expenditures in the Individual Income Tax System
This report examines how 10 of the largest tax expenditures in the individual income tax system in 2013 are distributed among households with different amounts of income. Those expenditures are grouped into four categories:
Employment
News
CNN: Money | First-time unemployment claims rise
About 354,000 people filed for their first week of unemployment benefits last week, according to seasonally adjusted figures from the Labor Department. That's 10,000 more initial claims than in the prior week, and a bit higher than economists had expected. But it's well below the 382,000 who sought help in the year-earlier period.
CNN: Money | First-time unemployment claims rise
About 354,000 people filed for their first week of unemployment benefits last week, according to seasonally adjusted figures from the Labor Department. That's 10,000 more initial claims than in the prior week, and a bit higher than economists had expected. But it's well below the 382,000 who sought help in the year-earlier period.
Budget
News
Politico | Obama to push low student loan rates
President Obama will urge Congress to take action to stop student loan interest rates from doubling at an event at the White House on Friday.
CNN: Money | Federal disability trust fund on the brink
Nearly 11 million people depend on federal disability payments ... but the system is on the verge of running short of money.
Politico | Obama to push low student loan rates
President Obama will urge Congress to take action to stop student loan interest rates from doubling at an event at the White House on Friday.
CNN: Money | Federal disability trust fund on the brink
Nearly 11 million people depend on federal disability payments ... but the system is on the verge of running short of money.
Wednesday, May 29, 2013
General Economics
News
CNN Money | ECB must do more to boost growth: OECD
The European Central Bank should follow its recent interest rate cut with more radical action to tackle recession and record unemployment, the OECD said Wednesday as it slashed its forecast for the eurozone economy.
Politico | Natural gas price might have found sweet spot
It’s not hard to imagine the reactions inside the Beltway if the price of gasoline more than doubled in a single year: the congressional investigations, demands for action from the White House and loud protests from consumers.
FOX News | After decade of decline, Great Lakes region pins hopes for economic comeback on water riches
Business and government leaders in the Great Lakes region are pinning hopes for a return to prosperity on a precious resource: fresh water.
FOX Business | Foreclosures Hold Steady in April
The number of foreclosed U.S. homes held steady in April, while there were fewer properties sitting in the pipeline, fresh signs the housing recovery is on track, data from CoreLogic showed on Wednesday.
Bloomberg | OECD Forecasts Global Economy to Recover Next Year: Economy
The Organization for Economic Cooperation and Development forecasts global economic growth will accelerate in 2014 with both the U.S. and Japan continuing to outpace the euro area.
Washington Post | Small business lending freeze starting to thaw
The credit health of small companies across the country improved during the first quarter of 2013, according to a new report by Experian and Moody’s Analytics, surprising analysts, most of whom were expecting either no change or a slight decline over the first few months of the year.
Econ Comments & Analysis
WSJ | IMF Forecasts Lower China Growth, Warns on Debt
The International Monetary Fund joined a host of private economists who have lowered expectations for growth in the Chinese economy, an outlook that has raised questions over whether Beijing will seek to counter a moderating pace.
Politico | Feds tap tech startups to cut contract costs
An experimental, easy-to-use system for receiving low-dollar federal contract bids saved as much as 44 percent on tech-related projects and prompted 270 new companies to sign up as potential bidders, according to a Small Business Administration analysis.
Politico | When community banks prosper, gains are widespread
The U.S. economy is the largest and most diverse economy on Earth, made up of businesses of all types, shapes and sizes. To support the financial needs of large multinational corporations as well as small businesses and family farms, the United States needs financial institutions of all kinds to meet a wide variety of financial needs.
Forbes | Once The Obama Narrative Implodes, Reality Breaks Through
While Barack Obama’s presidency may yet recover—especially if the White House can win back the mainstream media’s active support—the ability to frame, spin, distract, blame, deny, distort, demonize, and prevaricate on any issue unchallenged has been compromised.
Blogs
WSJ | Study: How Using Homes as ATMs Fueled Foreclosures
The conventional wisdom of the housing crisis goes something like this: Too many people bought homes as the housing bubble inflated. Some were unlucky in their timing, while others overextended themselves by putting too little money down. All of these top-of-the-market purchases led to an explosion of foreclosures once home prices dropped sharply and the economy hit the skids.
Market Watch | Household wealth seen rising at least $1.8 trillion as house prices climb
The net wealth of American households is set to rise at least $1.8 trillion this year if home prices sustain recent trends, according to analysis released Tuesday.
WSJ | Secondary Sources: Saving, Tax Deductions, Minimum Wages
A roundup of economic news from around the Web.
Heritage Foundation | Pacific Alliance: Decreasing Trade Barriers and Increasing Economic Growth
The presidents of the “Pacific Alliance” (Chile, Colombia, México, and Perú) met last week in Cali, Colombia, to sign an agreement removing tariffs on 90 percent of their merchandise trade.
CNN Money | ECB must do more to boost growth: OECD
The European Central Bank should follow its recent interest rate cut with more radical action to tackle recession and record unemployment, the OECD said Wednesday as it slashed its forecast for the eurozone economy.
Politico | Natural gas price might have found sweet spot
It’s not hard to imagine the reactions inside the Beltway if the price of gasoline more than doubled in a single year: the congressional investigations, demands for action from the White House and loud protests from consumers.
FOX News | After decade of decline, Great Lakes region pins hopes for economic comeback on water riches
Business and government leaders in the Great Lakes region are pinning hopes for a return to prosperity on a precious resource: fresh water.
FOX Business | Foreclosures Hold Steady in April
The number of foreclosed U.S. homes held steady in April, while there were fewer properties sitting in the pipeline, fresh signs the housing recovery is on track, data from CoreLogic showed on Wednesday.
Bloomberg | OECD Forecasts Global Economy to Recover Next Year: Economy
The Organization for Economic Cooperation and Development forecasts global economic growth will accelerate in 2014 with both the U.S. and Japan continuing to outpace the euro area.
Washington Post | Small business lending freeze starting to thaw
The credit health of small companies across the country improved during the first quarter of 2013, according to a new report by Experian and Moody’s Analytics, surprising analysts, most of whom were expecting either no change or a slight decline over the first few months of the year.
Econ Comments & Analysis
WSJ | IMF Forecasts Lower China Growth, Warns on Debt
The International Monetary Fund joined a host of private economists who have lowered expectations for growth in the Chinese economy, an outlook that has raised questions over whether Beijing will seek to counter a moderating pace.
Politico | Feds tap tech startups to cut contract costs
An experimental, easy-to-use system for receiving low-dollar federal contract bids saved as much as 44 percent on tech-related projects and prompted 270 new companies to sign up as potential bidders, according to a Small Business Administration analysis.
Politico | When community banks prosper, gains are widespread
The U.S. economy is the largest and most diverse economy on Earth, made up of businesses of all types, shapes and sizes. To support the financial needs of large multinational corporations as well as small businesses and family farms, the United States needs financial institutions of all kinds to meet a wide variety of financial needs.
Forbes | Once The Obama Narrative Implodes, Reality Breaks Through
While Barack Obama’s presidency may yet recover—especially if the White House can win back the mainstream media’s active support—the ability to frame, spin, distract, blame, deny, distort, demonize, and prevaricate on any issue unchallenged has been compromised.
Blogs
WSJ | Study: How Using Homes as ATMs Fueled Foreclosures
The conventional wisdom of the housing crisis goes something like this: Too many people bought homes as the housing bubble inflated. Some were unlucky in their timing, while others overextended themselves by putting too little money down. All of these top-of-the-market purchases led to an explosion of foreclosures once home prices dropped sharply and the economy hit the skids.
Market Watch | Household wealth seen rising at least $1.8 trillion as house prices climb
The net wealth of American households is set to rise at least $1.8 trillion this year if home prices sustain recent trends, according to analysis released Tuesday.
WSJ | Secondary Sources: Saving, Tax Deductions, Minimum Wages
A roundup of economic news from around the Web.
Heritage Foundation | Pacific Alliance: Decreasing Trade Barriers and Increasing Economic Growth
The presidents of the “Pacific Alliance” (Chile, Colombia, México, and Perú) met last week in Cali, Colombia, to sign an agreement removing tariffs on 90 percent of their merchandise trade.
Health Care
Econ Comments & Analysis
Daily Caller | Let the IRS implement Obamacare? Are we nuts?
Revelations that the Internal Revenue Service targeted conservative groups for discriminatory treatment, and leaked confidential information about those groups to a left-wing outfit, ProPublica, should make us think twice about the White House’s plans to give the IRS even more authority — over our medicine cabinets.
NBER | The Spillover Effects of Medicare Managed Care: Medicare Advantage and Hospital Utilization
More than a quarter of Medicare beneficiaries are enrolled in Medicare Advantage, which was created in large part to improve the efficiency of health care delivery by promoting competition among private managed care plans.
Daily Caller | Let the IRS implement Obamacare? Are we nuts?
Revelations that the Internal Revenue Service targeted conservative groups for discriminatory treatment, and leaked confidential information about those groups to a left-wing outfit, ProPublica, should make us think twice about the White House’s plans to give the IRS even more authority — over our medicine cabinets.
NBER | The Spillover Effects of Medicare Managed Care: Medicare Advantage and Hospital Utilization
More than a quarter of Medicare beneficiaries are enrolled in Medicare Advantage, which was created in large part to improve the efficiency of health care delivery by promoting competition among private managed care plans.
Monetary
News
FOX Business | OECD Warns Interest Rates Could Spike when Fed Slows QE3
After flooding U.S. banks with cash to fight an economic crisis, the Federal Reserve must now find a way to slowly tighten the money spigot without dealing a painful shock to businesses and families, the OECD said in a report on Wednesday.
Bloomberg | Fed’s 100-Year Roots Grew From Virginia Congressman
As Carter Glass began to sketch out plans for a central bank in 1913, all the U.S. representative from Virginia had to do was read his mail to know he had nationwide support.
Econ Comments & Analysis
Real Clear Markets | QE: A Guide For the Perplexed
The Fed dominated the news cycle last Wednesday. In the morning, Chairman Bernanke appeared on Capitol Hill to discuss the economy and monetary policy. Then, in the afternoon, the Fed released the Minutes for the FOMC meeting held on April 30 and May 1.
Blogs
Market Watch | Maybe Bernanke is happy with the confusion over Fed policy
In the wake of Fed Chairman Ben Bernanke’s comments that the central bank could take the first step towards slowing down its asset purchase programs in one of its “next few meetings,” Fed watchers are second-guessing their own projections. One top economist thinks that might have been Bernanke’s intention all along.
WSJ | Kansas City Fed Wanted to Raise Discount Rate
Federal Reserve officials said they view the pace of economic expansion as “moderate” and voted to maintain its primary credit rate.
FOX Business | OECD Warns Interest Rates Could Spike when Fed Slows QE3
After flooding U.S. banks with cash to fight an economic crisis, the Federal Reserve must now find a way to slowly tighten the money spigot without dealing a painful shock to businesses and families, the OECD said in a report on Wednesday.
Bloomberg | Fed’s 100-Year Roots Grew From Virginia Congressman
As Carter Glass began to sketch out plans for a central bank in 1913, all the U.S. representative from Virginia had to do was read his mail to know he had nationwide support.
Econ Comments & Analysis
Real Clear Markets | QE: A Guide For the Perplexed
The Fed dominated the news cycle last Wednesday. In the morning, Chairman Bernanke appeared on Capitol Hill to discuss the economy and monetary policy. Then, in the afternoon, the Fed released the Minutes for the FOMC meeting held on April 30 and May 1.
Blogs
Market Watch | Maybe Bernanke is happy with the confusion over Fed policy
In the wake of Fed Chairman Ben Bernanke’s comments that the central bank could take the first step towards slowing down its asset purchase programs in one of its “next few meetings,” Fed watchers are second-guessing their own projections. One top economist thinks that might have been Bernanke’s intention all along.
WSJ | Kansas City Fed Wanted to Raise Discount Rate
Federal Reserve officials said they view the pace of economic expansion as “moderate” and voted to maintain its primary credit rate.
Taxes
News
WSJ | Switzerland Moves Toward U.S. Tax Deal
Swiss banks will be able to deal directly with U.S. authorities to settle legal issues over suspected tax evasion by Americans under a framework agreed by the Swiss cabinet, a development that may lift some of the uncertainty hanging over the Alpine country's financial industry.
Bloomberg | Corporate Interest Deduction Proves Sacred Amid Reformers: Taxes
A newly formed coalition of businesses is stepping up efforts to protect interest deductions as tax reform advances in Congress.
WSJ | Curious IRS Timing
The IRS has admitted targeting groups that wanted to speak on issues during the 2012 election season. But did the agency also target tax-exempt groups that opposed Administration policy priorities?
Econ Comments & Analysis
NY Times | The Trouble With Taxing Corporations
It hardly qualifies as a defense. But that is perhaps the most accurate statement that Apple’s chief executive, Timothy D. Cook, could have made to lawmakers inquiring last week about how its creative financial techniques contributed to its low business tax payments.
Blogs
Heritage Foundation | Internet Sales Tax Could Lead to Higher Prices
If the House approves the Marketplace Fairness Act, Villa Lagoon Tile won’t be out of business, but it might be forced to raise its prices. In an interview with National Public Radio, owners Lundy Wilder and Dave Perry talked about the “tremendous burden” the Internet sales tax will create for their business.
WSJ | Switzerland Moves Toward U.S. Tax Deal
Swiss banks will be able to deal directly with U.S. authorities to settle legal issues over suspected tax evasion by Americans under a framework agreed by the Swiss cabinet, a development that may lift some of the uncertainty hanging over the Alpine country's financial industry.
Bloomberg | Corporate Interest Deduction Proves Sacred Amid Reformers: Taxes
A newly formed coalition of businesses is stepping up efforts to protect interest deductions as tax reform advances in Congress.
WSJ | Curious IRS Timing
The IRS has admitted targeting groups that wanted to speak on issues during the 2012 election season. But did the agency also target tax-exempt groups that opposed Administration policy priorities?
Econ Comments & Analysis
NY Times | The Trouble With Taxing Corporations
It hardly qualifies as a defense. But that is perhaps the most accurate statement that Apple’s chief executive, Timothy D. Cook, could have made to lawmakers inquiring last week about how its creative financial techniques contributed to its low business tax payments.
Blogs
Heritage Foundation | Internet Sales Tax Could Lead to Higher Prices
If the House approves the Marketplace Fairness Act, Villa Lagoon Tile won’t be out of business, but it might be forced to raise its prices. In an interview with National Public Radio, owners Lundy Wilder and Dave Perry talked about the “tremendous burden” the Internet sales tax will create for their business.
Employment
Econ Comments & Analysis
Washington Times | A roadblock to entry-level job-seekers
Instead of raising the minimum wage, as President Obama has proposed, we should abolish it entirely. The minimum wage does more harm than good, particularly in an already dismal U.S. employment market, especially for the young, inexperienced, uneducated and low-skilled job-seekers.
Washington Times | A roadblock to entry-level job-seekers
Instead of raising the minimum wage, as President Obama has proposed, we should abolish it entirely. The minimum wage does more harm than good, particularly in an already dismal U.S. employment market, especially for the young, inexperienced, uneducated and low-skilled job-seekers.
Budget
Econ Comments & Analysis
WSJ | Deposits Guaranteed Up to $250,000—Maybe
The banking and government-debt crisis in Cyprus has focused everyone's attention on the fact that it is possible for bank depositors to take losses on their deposits. This has surprised many people, who assumed that governments will always bail out depositors in full. But what if the government itself needs a bailout, as Cyprus did?
Blogs
Economist | Debt, growth and competing risks
This is the heart of the matter: if budget cuts, in Europe and elsewhere, have done less to curtail borrowing than hoped and more to raise unemployment than feared, then they have been worse than useless.
WSJ | Deposits Guaranteed Up to $250,000—Maybe
The banking and government-debt crisis in Cyprus has focused everyone's attention on the fact that it is possible for bank depositors to take losses on their deposits. This has surprised many people, who assumed that governments will always bail out depositors in full. But what if the government itself needs a bailout, as Cyprus did?
Blogs
Economist | Debt, growth and competing risks
This is the heart of the matter: if budget cuts, in Europe and elsewhere, have done less to curtail borrowing than hoped and more to raise unemployment than feared, then they have been worse than useless.
Tuesday, May 28, 2013
General Economics
News
CNN Money | Home prices post strongest gains in 7 years
U.S. home prices posted their strongest gains since 2006, as the housing recovery continued to gain steam.
Market Watch | Fannie, Freddie climb 25% to continue surge
The over-the-counter common shares of mortgage giants Fannie Mae and Freddie Mac each leapt over 25% on Monday, extending the 40%-plus gains seen Friday.
WSJ | States Raise College Budgets After Years of Deep Cuts
After cutting spending on public colleges and universities during the economic crisis, many state governments have begun to boost higher-education budgets once again.
Econ Comments & Analysis
Bloomberg | Europe’s Banks Turn to U.S. Subprime for Salvation
The U.S. mortgage bonds that were exported around the globe and triggered the worst financial crisis since the Great Depression are now helping Europe’s banks and governments repair balance sheets after jumping in value.
WSJ | Regulator for the World
Imagine if a Bush Administration official had insisted that U.S. law must reign supreme in every country where a U.S. bank does business. That's essentially the position of Chairman Gary Gensler of the Commodity Futures Trading Commission (CFTC). And despite a world-wide backlash, the U.S. press corps is giving him an ovation.
Blogs
Library of Economics | Are Rising Graduation Rates Good News? Two Theories, Four Answers
The nation's high school graduation rate has risen -- to 78 percent in 2010, the Education Department says in its most recent estimate. That's obviously still not where it should be, but it's the highest figure since 1974.
Calculated Risk | Dallas and Richmond Fed: Regional Manufacturing Activity mixed in May
Manufacturing activity in the central Atlantic region contracted at a less pronounced rate in May after pulling back in April, according to the Richmond Fed’s latest survey. ...
CNN Money | Home prices post strongest gains in 7 years
U.S. home prices posted their strongest gains since 2006, as the housing recovery continued to gain steam.
Market Watch | Fannie, Freddie climb 25% to continue surge
The over-the-counter common shares of mortgage giants Fannie Mae and Freddie Mac each leapt over 25% on Monday, extending the 40%-plus gains seen Friday.
WSJ | States Raise College Budgets After Years of Deep Cuts
After cutting spending on public colleges and universities during the economic crisis, many state governments have begun to boost higher-education budgets once again.
Econ Comments & Analysis
Bloomberg | Europe’s Banks Turn to U.S. Subprime for Salvation
The U.S. mortgage bonds that were exported around the globe and triggered the worst financial crisis since the Great Depression are now helping Europe’s banks and governments repair balance sheets after jumping in value.
WSJ | Regulator for the World
Imagine if a Bush Administration official had insisted that U.S. law must reign supreme in every country where a U.S. bank does business. That's essentially the position of Chairman Gary Gensler of the Commodity Futures Trading Commission (CFTC). And despite a world-wide backlash, the U.S. press corps is giving him an ovation.
Blogs
Library of Economics | Are Rising Graduation Rates Good News? Two Theories, Four Answers
The nation's high school graduation rate has risen -- to 78 percent in 2010, the Education Department says in its most recent estimate. That's obviously still not where it should be, but it's the highest figure since 1974.
Calculated Risk | Dallas and Richmond Fed: Regional Manufacturing Activity mixed in May
Manufacturing activity in the central Atlantic region contracted at a less pronounced rate in May after pulling back in April, according to the Richmond Fed’s latest survey. ...
Health Care
News
Politico | Poll: 54 percent against Obamacare
Fifty-four percent of Americans oppose President Barack Obama’s signature domestic policy achievement, according to a CNN poll released Monday, while 43 percent support the law.
CNN Money | IRS role in Obamacare
The IRS has a big target on its back these days. Its leaders have been pummeled on Capitol Hill over inappropriate targeting of Tea Party groups applying for tax-exempt status.
Bloomberg | Obamacare Unveiled as California, New York Lead U.S.
While politicians in Washington argue over the Affordable Care Act, its ultimate fate is being decided far from Capitol Hill.
Econ Comments & Analysis
Real Clear Markets | Obamacare Will Give Consumers the Wrong Information
The federal government is working hard to educate consumers about the nutritional content and health dangers hidden in your favorite foods. Restaurants increasingly are being forced to provide their customers with information on calories, sodium, sugar, and other information on nutrition and ingredients.
Politico | Poll: 54 percent against Obamacare
Fifty-four percent of Americans oppose President Barack Obama’s signature domestic policy achievement, according to a CNN poll released Monday, while 43 percent support the law.
CNN Money | IRS role in Obamacare
The IRS has a big target on its back these days. Its leaders have been pummeled on Capitol Hill over inappropriate targeting of Tea Party groups applying for tax-exempt status.
Bloomberg | Obamacare Unveiled as California, New York Lead U.S.
While politicians in Washington argue over the Affordable Care Act, its ultimate fate is being decided far from Capitol Hill.
Econ Comments & Analysis
Real Clear Markets | Obamacare Will Give Consumers the Wrong Information
The federal government is working hard to educate consumers about the nutritional content and health dangers hidden in your favorite foods. Restaurants increasingly are being forced to provide their customers with information on calories, sodium, sugar, and other information on nutrition and ingredients.
Monetary
Econ Comments & Analysis
Washington Post | The curse of the dollar?
For years, the dollar’s role as the major global currency has been termed an “exorbitant privilege” — a phrase coined by French Finance Minister and later President Valéry Giscard d’Estaing. Now it may be turning into an extravagant curse.
Washington Times | Preserving their monopoly on monopoly money
“The need to slough off the outworn old to make possible the productive new is universal. It is reasonably certain that we would still have stagecoaches — nationalized to be sure, heavily subsidized and with a fantastic research program to ‘retain the horse’ — had there been ministries of transportation around 1825.”
Real Clear Markets | Bernanke's Cures Are the Economy's Disease
New jobs numbers from the Labor Department due out next week will give the Federal Reserve its first clue as to how the economy performed in May, and signal whether the Fed might start reducing its accommodative monetary policy.
Heritage Foundation | Congress Should Query IMF Support for Capital Controls
Since the global financial turmoil in late 2008, increased attention has focused on the role of the IMF in the rapidly changing international monetary system and the future of U.S. support for the fund. The IMF’s recent institutional endorsement of capital controls should be a major concern for Congress in its consideration of President Obama’s request for a $63 billion increase in the U.S. funding for the organization.
Washington Post | The curse of the dollar?
For years, the dollar’s role as the major global currency has been termed an “exorbitant privilege” — a phrase coined by French Finance Minister and later President Valéry Giscard d’Estaing. Now it may be turning into an extravagant curse.
Washington Times | Preserving their monopoly on monopoly money
“The need to slough off the outworn old to make possible the productive new is universal. It is reasonably certain that we would still have stagecoaches — nationalized to be sure, heavily subsidized and with a fantastic research program to ‘retain the horse’ — had there been ministries of transportation around 1825.”
Real Clear Markets | Bernanke's Cures Are the Economy's Disease
New jobs numbers from the Labor Department due out next week will give the Federal Reserve its first clue as to how the economy performed in May, and signal whether the Fed might start reducing its accommodative monetary policy.
Heritage Foundation | Congress Should Query IMF Support for Capital Controls
Since the global financial turmoil in late 2008, increased attention has focused on the role of the IMF in the rapidly changing international monetary system and the future of U.S. support for the fund. The IMF’s recent institutional endorsement of capital controls should be a major concern for Congress in its consideration of President Obama’s request for a $63 billion increase in the U.S. funding for the organization.
Taxes
News
CNBC | Texas Passes Business Tax Cuts Worth More Than $1 Billion
Texas lawmakers sent Gov. Rick Perry more than $1 billion in proposed business tax cuts shortly before the end of the biennial legislative session, and the governor called a special session to address redistricting.
Econ Comments & Analysis
Fortune | In U.S. energy boom, a growing tax dodge
More energy companies are converting to a tax-free status that was once reserved for a small segment of the industry.
AEI | Fix, don't flatten, the tax code
If the sluggish U.S. economy wasn’t reason enough for tax reform, the ongoing IRS scandal demonstrates how a devilishly complex tax code enables government mischief.
CNBC | Texas Passes Business Tax Cuts Worth More Than $1 Billion
Texas lawmakers sent Gov. Rick Perry more than $1 billion in proposed business tax cuts shortly before the end of the biennial legislative session, and the governor called a special session to address redistricting.
Econ Comments & Analysis
Fortune | In U.S. energy boom, a growing tax dodge
More energy companies are converting to a tax-free status that was once reserved for a small segment of the industry.
AEI | Fix, don't flatten, the tax code
If the sluggish U.S. economy wasn’t reason enough for tax reform, the ongoing IRS scandal demonstrates how a devilishly complex tax code enables government mischief.
Employment
Econ Comments & Analysis
Politico | Winning the jobs war
While the talk in Washington in recent weeks has veered sharply away from the issues that most affect our daily lives, the people I meet at businesses, in schools and elsewhere in our communities are still most concerned with how their leaders are going to ensure the availability of the things that mean the most to them, like well-paying jobs, quality education, and a fair opportunity for their families.
AEI | A new jobs agenda
The most pressing problem facing the United States today is not the federal budget deficit, the national debt, or excessive federal spending. It is the labor market. Yes, the United States does have a deficit problem, but we have a much more serious labor-market problem.
Politico | Winning the jobs war
While the talk in Washington in recent weeks has veered sharply away from the issues that most affect our daily lives, the people I meet at businesses, in schools and elsewhere in our communities are still most concerned with how their leaders are going to ensure the availability of the things that mean the most to them, like well-paying jobs, quality education, and a fair opportunity for their families.
AEI | A new jobs agenda
The most pressing problem facing the United States today is not the federal budget deficit, the national debt, or excessive federal spending. It is the labor market. Yes, the United States does have a deficit problem, but we have a much more serious labor-market problem.
Budget
News
CNN Money | Senior citizens struggle with mounting debt
It used to be that many Americans entered retirement having paid off their mortgages and most of their other debts. This should have been senior citizens' Golden Years.
Bloomberg | Worse-Than-Cyprus Debt Load Means Caribbean Defaults to Moody’s
Three bond restructurings totaling about $9.7 billion in the Caribbean this year are failing to ignite economic growth and may not help the region avoid more defaults, according to Moody’s Investors Service.
CNN Money | 7 million students brace for surge in loan rates
On July 1, the interest rates on student loans subsidized by Uncle Sam will most likely double to 6.8%.
WSJ | Economists Brawl Over Austerity, Debt
Harvard economists Kenneth Rogoff and Carmen Reinhart over the weekend accused Princeton economist and New York Times columnist Paul Krugman of "spectacularly uncivil behavior" and of inaccurately alleging that they refused to share data supporting their work linking heavy debt levels to subsequent slow economic growth.
Econ Comments & Analysis
Market Watch | Why the debt-ceiling fight is low key — for now
When it comes to raising the U.S. debt ceiling, 2013 is not 2011. At least not yet.
Washignton Times | Pricking the college loan bubble
College loans remain a cruel charade. In the name of making higher education “more affordable,” students are conned into borrowing far more than they can repay in return for a university degree.
NBER | Borrowing High vs. Borrowing Higher: Sources and Consequences of Dispersion in Individual Borrowing Costs
We document cross-individual variation in U.S. credit card borrowing costs (APRs) that is large enough to explain substantial differences in household saving rates.
Blogs
Economist | Debt, growth and competing risks
Carmen Reinhart and Kenneth Rogoff have revived the debate over their work on debt and growth with an open letter to Paul Krugman. They accuse him of incivility, factual misstatements and general wrongness. On the first, he's guilty (but so are many economists, usefully). On the second, he is guilty of a lesser charge
CNN Money | Senior citizens struggle with mounting debt
It used to be that many Americans entered retirement having paid off their mortgages and most of their other debts. This should have been senior citizens' Golden Years.
Bloomberg | Worse-Than-Cyprus Debt Load Means Caribbean Defaults to Moody’s
Three bond restructurings totaling about $9.7 billion in the Caribbean this year are failing to ignite economic growth and may not help the region avoid more defaults, according to Moody’s Investors Service.
CNN Money | 7 million students brace for surge in loan rates
On July 1, the interest rates on student loans subsidized by Uncle Sam will most likely double to 6.8%.
WSJ | Economists Brawl Over Austerity, Debt
Harvard economists Kenneth Rogoff and Carmen Reinhart over the weekend accused Princeton economist and New York Times columnist Paul Krugman of "spectacularly uncivil behavior" and of inaccurately alleging that they refused to share data supporting their work linking heavy debt levels to subsequent slow economic growth.
Econ Comments & Analysis
Market Watch | Why the debt-ceiling fight is low key — for now
When it comes to raising the U.S. debt ceiling, 2013 is not 2011. At least not yet.
Washignton Times | Pricking the college loan bubble
College loans remain a cruel charade. In the name of making higher education “more affordable,” students are conned into borrowing far more than they can repay in return for a university degree.
NBER | Borrowing High vs. Borrowing Higher: Sources and Consequences of Dispersion in Individual Borrowing Costs
We document cross-individual variation in U.S. credit card borrowing costs (APRs) that is large enough to explain substantial differences in household saving rates.
Blogs
Economist | Debt, growth and competing risks
Carmen Reinhart and Kenneth Rogoff have revived the debate over their work on debt and growth with an open letter to Paul Krugman. They accuse him of incivility, factual misstatements and general wrongness. On the first, he's guilty (but so are many economists, usefully). On the second, he is guilty of a lesser charge
Friday, May 24, 2013
General Economics
News
Bloomberg | German First-Quarter Growth Damped by Construction, Investment
The German economy’s return to growth in the first quarter was hampered by declines in construction activity and investment as a severe winter and a recession in Europe damped demand.
CNN Money | Poor hit hardest by Washington budget cuts
Forced federal spending cuts intended to be equal and across-the-board have lately fallen harder on the nation's poor, sick and elderly.
Bloomberg | Orders for U.S. Durable Goods Increase More Than Forecast
Orders for U.S. durable goods increased more than forecast in April, pointing to gains in business investment that will help manufacturing rebound in the second half of the year.
CNBC | Two Storms Brewing: One Political, the Other Economic
Have two Pandora's Boxes been opened? Fed Chairman Ben Bernanke may have opened the first one. No matter that it is highly unlikely economic data will come in showing sufficient strong and sustained growth to justify tapering bond purchases any time soon — markets see it differently.
Econ Comments & Analysis
Fiscal Times | Why A ‘Too Big to Manage’ Government Should Downsize
To listen to press secretaries and congressional hearings, one might think that an epidemic had erupted in the nation’s capital – an epidemic of incompetence and absentee leadership. Practically no area of government has immunity from this disease, whether it’s at the White House, the State Department, the IRS and Treasury, or at the Department of Justice.
WSJ | The Global Solar Cartel
The Obama Administration and European Union are looking for ways to avoid a trade war with China over solar-energy panels. Their brilliant proposed solution? A global cartel enforced by government.
Mercatus | Reforming Social Security to Better Promote Retirement Security
My testimony focuses on the Social Security program’s incentives—specifically, how the current structure provides disincentives to work and save. I will also discuss how Social Security reform, if done correctly, can increase US savings, labor force participation, economic growth, and federal revenues.
Blogs
Economist | Things could be better
The Pew Research Centre has released new figures assessing attitudes around the world on economic issues. The results are fascinating, sobering, and not that surprising. Things seem to have gone a bit worse since 2007 than most people had anticipated at the time.
WSJ | Don’t Get Too Excited About Record New-Home Prices
Today’s Census numbers show that sales of new homes — a key economic driver across multiple industries — are steadily recovering. But more striking is the pace at which prices of new homes are recovering.
AEI | How to beat Memorial Day traffic forever
The AAA Memorial Day travel forecast released yesterday estimates that about 31 million Americans will drive 50 miles or more to reach their destinations this weekend.
Bloomberg | German First-Quarter Growth Damped by Construction, Investment
The German economy’s return to growth in the first quarter was hampered by declines in construction activity and investment as a severe winter and a recession in Europe damped demand.
CNN Money | Poor hit hardest by Washington budget cuts
Forced federal spending cuts intended to be equal and across-the-board have lately fallen harder on the nation's poor, sick and elderly.
Bloomberg | Orders for U.S. Durable Goods Increase More Than Forecast
Orders for U.S. durable goods increased more than forecast in April, pointing to gains in business investment that will help manufacturing rebound in the second half of the year.
CNBC | Two Storms Brewing: One Political, the Other Economic
Have two Pandora's Boxes been opened? Fed Chairman Ben Bernanke may have opened the first one. No matter that it is highly unlikely economic data will come in showing sufficient strong and sustained growth to justify tapering bond purchases any time soon — markets see it differently.
Econ Comments & Analysis
Fiscal Times | Why A ‘Too Big to Manage’ Government Should Downsize
To listen to press secretaries and congressional hearings, one might think that an epidemic had erupted in the nation’s capital – an epidemic of incompetence and absentee leadership. Practically no area of government has immunity from this disease, whether it’s at the White House, the State Department, the IRS and Treasury, or at the Department of Justice.
WSJ | The Global Solar Cartel
The Obama Administration and European Union are looking for ways to avoid a trade war with China over solar-energy panels. Their brilliant proposed solution? A global cartel enforced by government.
Mercatus | Reforming Social Security to Better Promote Retirement Security
My testimony focuses on the Social Security program’s incentives—specifically, how the current structure provides disincentives to work and save. I will also discuss how Social Security reform, if done correctly, can increase US savings, labor force participation, economic growth, and federal revenues.
Blogs
Economist | Things could be better
The Pew Research Centre has released new figures assessing attitudes around the world on economic issues. The results are fascinating, sobering, and not that surprising. Things seem to have gone a bit worse since 2007 than most people had anticipated at the time.
WSJ | Don’t Get Too Excited About Record New-Home Prices
Today’s Census numbers show that sales of new homes — a key economic driver across multiple industries — are steadily recovering. But more striking is the pace at which prices of new homes are recovering.
AEI | How to beat Memorial Day traffic forever
The AAA Memorial Day travel forecast released yesterday estimates that about 31 million Americans will drive 50 miles or more to reach their destinations this weekend.
Health Care
News
CNN Money | Obamacare premiums in California lower than predicted
Health insurers in California will charge an average of $304 a month for the cheapest silver-level plan in state-based exchanges next year, according to rates released Thursday by Covered California, which is implementing the Affordable Care Act there. But many residents will pay a lot less than that for coverage.
Econ Comments & Analysis
Washington Post | The fog of Obamacare
You’ve heard of the “fog of war.” Well, now we’ve got the fog of Obamacare. The controversial Affordable Care Act (ACA) has so many moving parts that it’s hard to know how its implementation is proceeding.
Fortune | Health care reform's unexpected victims
A new study suggests that American insurers may start prohibiting premium payments via debit or credit card, a move that will put Americans without bank accounts in a major bind.
Real Clear Energy | We Need a 21st Century Energy Policy
The newly sworn-in Energy Secretary has taken a go-slow posture on natural gas exports. This, after the U.S. has just blown past Russia to become the world's largest producer. And America will shortly occupy the number one position in oil production as well. This nation is poised to become a major hydrocarbon exporter to an energy-hungry world.
CNN Money | Obamacare premiums in California lower than predicted
Health insurers in California will charge an average of $304 a month for the cheapest silver-level plan in state-based exchanges next year, according to rates released Thursday by Covered California, which is implementing the Affordable Care Act there. But many residents will pay a lot less than that for coverage.
Econ Comments & Analysis
Washington Post | The fog of Obamacare
You’ve heard of the “fog of war.” Well, now we’ve got the fog of Obamacare. The controversial Affordable Care Act (ACA) has so many moving parts that it’s hard to know how its implementation is proceeding.
Fortune | Health care reform's unexpected victims
A new study suggests that American insurers may start prohibiting premium payments via debit or credit card, a move that will put Americans without bank accounts in a major bind.
Real Clear Energy | We Need a 21st Century Energy Policy
The newly sworn-in Energy Secretary has taken a go-slow posture on natural gas exports. This, after the U.S. has just blown past Russia to become the world's largest producer. And America will shortly occupy the number one position in oil production as well. This nation is poised to become a major hydrocarbon exporter to an energy-hungry world.
Monetary
News
Bloomberg | Fed History Shows Punch Bowl Goes as Jobs Rise: Cutting Research
An improving labor market rather than accelerating inflation made the Federal Reserve decide to end its last three episodes of easy monetary policy. It may be about to happen again, says Barclays Plc strategist Barry Knapp.
Econ Comments & Analysis
WSJ | Bernanke Talks, Markets Wobble. There Must Be a Better Way
Since Federal Reserve Chairman Ben Bernanke testified before Congress's Joint Economic Committee Wednesday morning, commenting on the economic outlook and responding to questions from lawmakers on the likely path of monetary policy, financial markets have experienced turmoil.
TIME | Japan Market Crash: A Slow Leak in the “Central Bank Bubble”
There’s a truism in investing that the last one into a market is the first one out. And that certainly seems to be the case today, with Japan’s Nikkei index crashing off the back of two things: First, hints from the Federal Reserve that the U.S. economy is improving enough to justify a slow pull-back from the central bank’s market-goosing asset buying program known as “quantitative easing;” and second, that the Chinese economy is slowing down even more than we thought.
Bloomberg | Fed History Shows Punch Bowl Goes as Jobs Rise: Cutting Research
An improving labor market rather than accelerating inflation made the Federal Reserve decide to end its last three episodes of easy monetary policy. It may be about to happen again, says Barclays Plc strategist Barry Knapp.
Econ Comments & Analysis
WSJ | Bernanke Talks, Markets Wobble. There Must Be a Better Way
Since Federal Reserve Chairman Ben Bernanke testified before Congress's Joint Economic Committee Wednesday morning, commenting on the economic outlook and responding to questions from lawmakers on the likely path of monetary policy, financial markets have experienced turmoil.
TIME | Japan Market Crash: A Slow Leak in the “Central Bank Bubble”
There’s a truism in investing that the last one into a market is the first one out. And that certainly seems to be the case today, with Japan’s Nikkei index crashing off the back of two things: First, hints from the Federal Reserve that the U.S. economy is improving enough to justify a slow pull-back from the central bank’s market-goosing asset buying program known as “quantitative easing;” and second, that the Chinese economy is slowing down even more than we thought.
Taxes
News
CNN Money | The 'chicken poop' credit and other bad tax breaks
The fuss over Apple's complex strategies to avoid taxes put the corporate tax code on display in all its convoluted glory this week.
Blogs
Heritage Foundation | Internet Sales Tax Coalition “Fact Check” Needs Checking
On Tuesday, the Marketplace Fairness Coalition, a group supporting the Marketplace Fairness Act (MFA), released a “fact check” memo identifying no fewer than seven “myths” put forward by The Heritage Foundation concerning Internet sales taxes. As it turns out, none are myths at all. Here is our own fact check of the fact check.
Heritage Foundation | Congressional Budget Office Looks at a Carbon Tax
The Congressional Budget Office (CBO) recently released its report on the impact of a carbon tax. (Disclaimer: I provided comments to the CBO on a draft of the report, earlier this year.) The economic parts were pretty sensible and conclude that (be sure you are sitting down)—there are no free lunches.
CNN Money | The 'chicken poop' credit and other bad tax breaks
The fuss over Apple's complex strategies to avoid taxes put the corporate tax code on display in all its convoluted glory this week.
Blogs
Heritage Foundation | Internet Sales Tax Coalition “Fact Check” Needs Checking
On Tuesday, the Marketplace Fairness Coalition, a group supporting the Marketplace Fairness Act (MFA), released a “fact check” memo identifying no fewer than seven “myths” put forward by The Heritage Foundation concerning Internet sales taxes. As it turns out, none are myths at all. Here is our own fact check of the fact check.
Heritage Foundation | Congressional Budget Office Looks at a Carbon Tax
The Congressional Budget Office (CBO) recently released its report on the impact of a carbon tax. (Disclaimer: I provided comments to the CBO on a draft of the report, earlier this year.) The economic parts were pretty sensible and conclude that (be sure you are sitting down)—there are no free lunches.
Employment
Econ Comments & Analysis
Washington Times | Dodging job talk
Five months into his improvisational second term, a sluggish economy and severe jobless rate seem to have vanished from President Obama’s agenda.
Blogs
Calculated Risk | Merrill Lynch on Labor Force Participation Rate
Last week I summarized some recent research on the labor force participation rate. The following piece from Michelle Meyer at Merrill Lynch argues the LFPR will likely move sideways over the next few years.
Washington Times | Dodging job talk
Five months into his improvisational second term, a sluggish economy and severe jobless rate seem to have vanished from President Obama’s agenda.
Blogs
Calculated Risk | Merrill Lynch on Labor Force Participation Rate
Last week I summarized some recent research on the labor force participation rate. The following piece from Michelle Meyer at Merrill Lynch argues the LFPR will likely move sideways over the next few years.
Budget
Econ Comments & Analysis
Market Watch | How Congress could raise student loan debt
College students buckling under the weight of rising tuition face a new threat: rising interest rates on loans.
Blogs
WSJ | IMF Rethinking Role in Managing Sovereign Debt in Crises
The International Monetary Fund is rethinking its role in how sovereign debt is managed in crises, concerned that recent developments in sovereign debt markets threaten the effectiveness of its bailout programs.
Market Watch | How Congress could raise student loan debt
College students buckling under the weight of rising tuition face a new threat: rising interest rates on loans.
Blogs
WSJ | IMF Rethinking Role in Managing Sovereign Debt in Crises
The International Monetary Fund is rethinking its role in how sovereign debt is managed in crises, concerned that recent developments in sovereign debt markets threaten the effectiveness of its bailout programs.
Thursday, May 23, 2013
General Economics
News
Bloomberg | Confidence Improves as U.S. Consumers’ Views on Economy Mend
Consumer sentiment advanced last week, an indication that gains in housing and stock markets are bolstering Americans’ outlooks on the economy.
CNN Money | 4 federal agencies to shut Friday
Got a question about tax refunds, polluters or subsidized housing? Don't expect an answer this Friday.
Politico | House passes bill approving Keystone pipeline
The House approved legislation Wednesday to green-light the Keystone XL oil pipeline, giving Republicans a messaging victory heading into the Memorial Day recess.
FOX Business | China Data, Fed Worries Pummel Global Markets
Share markets fell sharply on Thursday as investors piled back into safer assets, unnerved by the twin setbacks of unexpected weakness in China's economy and signals that the U.S. central bank may soon scale back its stimulus programme.
CNN Money | Home sales continue to climb
Home sales continued to climb in April, according to the latest reading on the housing recovery from an industry trade group.
Bloomberg | Euro-Area Services, Factory Gauge Rises More Than Estimated
A euro-area services and factory output gauge increased more than economists forecast in May, adding to signs the currency bloc is starting to emerge from its record-long recession.
Econ Comments & Analysis
Washington Post | Economy needs both reform and investment
One way President Obama can begin to put the IRS scandal behind him is by proposing comprehensive tax reform. Beyond the usual Washington theatrics, the real problem is that the U.S. tax code is unbelievably complicated, clocking in around 74,000 pages, with all rulings, regulations and other material.
Politico | The stakes of U.S. prosperity, LNG trade
It is a rare opportunity that isolates Iran, undermines Russian energy dominance and broadly benefits the U.S. economy. But those are the stakes for Americannei prosperity as the Obama administration contemplates whether to allow the trade of natural gas with our closest allies.
CNN Money | Watch out. The mortgage securities market is at it again.
We thought the Dodd-Frank financial-reform law fixed all this by requiring securitizers to keep some skin in the game.
Blogs
WSJ | Four Reasons Housing Recovery Isn’t Yet Boosting Economy
The housing market may finally be leaning on the economy’s gas pedal—but it’s also keeping a foot on the brake.
Bloomberg | Confidence Improves as U.S. Consumers’ Views on Economy Mend
Consumer sentiment advanced last week, an indication that gains in housing and stock markets are bolstering Americans’ outlooks on the economy.
CNN Money | 4 federal agencies to shut Friday
Got a question about tax refunds, polluters or subsidized housing? Don't expect an answer this Friday.
Politico | House passes bill approving Keystone pipeline
The House approved legislation Wednesday to green-light the Keystone XL oil pipeline, giving Republicans a messaging victory heading into the Memorial Day recess.
FOX Business | China Data, Fed Worries Pummel Global Markets
Share markets fell sharply on Thursday as investors piled back into safer assets, unnerved by the twin setbacks of unexpected weakness in China's economy and signals that the U.S. central bank may soon scale back its stimulus programme.
CNN Money | Home sales continue to climb
Home sales continued to climb in April, according to the latest reading on the housing recovery from an industry trade group.
Bloomberg | Euro-Area Services, Factory Gauge Rises More Than Estimated
A euro-area services and factory output gauge increased more than economists forecast in May, adding to signs the currency bloc is starting to emerge from its record-long recession.
Econ Comments & Analysis
Washington Post | Economy needs both reform and investment
One way President Obama can begin to put the IRS scandal behind him is by proposing comprehensive tax reform. Beyond the usual Washington theatrics, the real problem is that the U.S. tax code is unbelievably complicated, clocking in around 74,000 pages, with all rulings, regulations and other material.
Politico | The stakes of U.S. prosperity, LNG trade
It is a rare opportunity that isolates Iran, undermines Russian energy dominance and broadly benefits the U.S. economy. But those are the stakes for Americannei prosperity as the Obama administration contemplates whether to allow the trade of natural gas with our closest allies.
CNN Money | Watch out. The mortgage securities market is at it again.
We thought the Dodd-Frank financial-reform law fixed all this by requiring securitizers to keep some skin in the game.
Blogs
WSJ | Four Reasons Housing Recovery Isn’t Yet Boosting Economy
The housing market may finally be leaning on the economy’s gas pedal—but it’s also keeping a foot on the brake.
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