News
FOX Business | Midwest Manufacturing Sector Heats up in September
The pace of business activity in the U.S. Midwest increased in September, though input prices dipped from a nine-month high, a report showed on Monday.
Reuters | U.S. data gives conflicting signals on economy's health
Contracts to buy previously owned U.S. homes fell for the third straight month in August but fewer Americans filed new claims for jobless benefits last week, giving conflicting signals on the health of the economy.
Econ Comments & Analysis
Real Clear Markets | Are the Producers Losing to the Predators?
We are, I fear, slowly moving from "the affluent society" toward a "spoils society." In 1958, Harvard economist John Kenneth Galbraith published his bestseller, "The Affluent Society," which profoundly influenced national thinking for decades. To the Great Depression's survivors, post-World War II prosperity dazzled. Suburbia offered a quiet alternative to crowded and noisy cities. New technologies impressed - television, frozen foods, automatic washers and dryers. Never, it seemed, had so much been enjoyed by so many.
NY Times | Housing Market Is Heating Up, if Not Yet Bubbling
Home prices have been rising rapidly, so much so that there is talk that we are entering another national bubble.
Bloomberg | IMF Says Domestic Investors Can Curb Capital Flow Volatility
Emerging markets can better resist capital flow volatility by taking measures to encourage their residents to invest abroad in good times and repatriate the funds when needed, according to a study by the International Monetary Fund.
Washington Post | Impact of a government shutdown
A government shutdown next week would interrupt some services and potentially jeopardize the paychecks of more than 800,000 federal workers. The Office of Management and Budget has asked agencies to begin making contingency plans.
Blogs
Market Watch | Damaging ripple effects seen if government shuts down
The direct economic hit from a government shutdown, which looks increasingly likely, may be relatively small but could have damaging ripple effects, analysts said Monday.
WSJ | Secondary Sources: QE3, Housing Bubble?, Fat Taxes
A roundup of economic news from around the Web.
CATO | Maybe the Real Lesson Is That It’s Best to Shut Down the Federal Government Before a New Fiscal Year Begins
The politicians, bureaucrats, lobbyists and interest groups in Washington are hyperventilating that the federal gravy train may get sidetracked for a day or two by a shutdown fight between Republicans and Democrats.
Monday, September 30, 2013
Health Care
News
Politico | Poll: Most will get health insurance
Asked whether they plan to get insurance when the requirement takes effect or pay the fine for not doing so, 65 percent of uninsured Americans said they would get health insurance, according to a Gallup poll out Monday. Twenty-five percent said they would pay the fine.
CNN Money | Not all Obamacare exchanges will open Oct. 1
The Obamacare insurance exchanges open for business on Tuesday ... sorta.
Econ Comments & Analysis
Washington Times | On the brink of Obamacare
Less than a week before Obamacare is to go live, the administration finally showed its hand — sort of — on the premiums in the 36 federally run exchanges — places where insurance exchanges are run in whole or part by the federal government. Even a cursory glance at the numbers reveals several noteworthy shortcomings.
Politico | Despite claims, Obamacare gives Congress no special treatment
Some health reform opponents claim the Obama administration is giving members of Congress and their staffs special treatment under the Affordable Care Act. The claim, which a number of media stories have repeated uncritically, is simply false: Although they will be required to enroll in health plans offered within the new health-insurance exchanges established under the law, members of Congress and their staffs will not receive extra financial help to pay for their medical care.
FOX Business | Expert Gives Obamacare Rollout a B-Minus
Health care reform -- now almost universally called Obamacare -- kicks into high gear in October, when millions of consumers begin shopping for health insurance on new state and federal exchanges.
CATO | Obamacare Launch Will be Ugly
ObamaCare officially opens for business Tuesday. Unfortunately, it’s already falling short of promise.
Politico | Poll: Most will get health insurance
Asked whether they plan to get insurance when the requirement takes effect or pay the fine for not doing so, 65 percent of uninsured Americans said they would get health insurance, according to a Gallup poll out Monday. Twenty-five percent said they would pay the fine.
CNN Money | Not all Obamacare exchanges will open Oct. 1
The Obamacare insurance exchanges open for business on Tuesday ... sorta.
Econ Comments & Analysis
Washington Times | On the brink of Obamacare
Less than a week before Obamacare is to go live, the administration finally showed its hand — sort of — on the premiums in the 36 federally run exchanges — places where insurance exchanges are run in whole or part by the federal government. Even a cursory glance at the numbers reveals several noteworthy shortcomings.
Politico | Despite claims, Obamacare gives Congress no special treatment
Some health reform opponents claim the Obama administration is giving members of Congress and their staffs special treatment under the Affordable Care Act. The claim, which a number of media stories have repeated uncritically, is simply false: Although they will be required to enroll in health plans offered within the new health-insurance exchanges established under the law, members of Congress and their staffs will not receive extra financial help to pay for their medical care.
FOX Business | Expert Gives Obamacare Rollout a B-Minus
Health care reform -- now almost universally called Obamacare -- kicks into high gear in October, when millions of consumers begin shopping for health insurance on new state and federal exchanges.
CATO | Obamacare Launch Will be Ugly
ObamaCare officially opens for business Tuesday. Unfortunately, it’s already falling short of promise.
Monetary
News
Bloomberg | Fed Too Familiar With Lost Workers Seeks New Guideposts: Economy
It’s becoming increasingly clear why Federal Reserve Chairman Ben S. Bernanke should have avoided linking the central bank’s policy decisions to specific unemployment rates.
Econ Comments & Analysis
Forbes | The Federal Reserve Is Now Badly Hooked On Its Quantitative Easing
The Federal Reserve surprised most by not changing its present policy of buying $85 billion of government debt a month with the printing press. I suspect that Ben Bernanke himself is not too unhappy with this; nor is his Princeton Keynesian counterpart Paul Krugman.
Bloomberg | Fed Too Familiar With Lost Workers Seeks New Guideposts: Economy
It’s becoming increasingly clear why Federal Reserve Chairman Ben S. Bernanke should have avoided linking the central bank’s policy decisions to specific unemployment rates.
Econ Comments & Analysis
Forbes | The Federal Reserve Is Now Badly Hooked On Its Quantitative Easing
The Federal Reserve surprised most by not changing its present policy of buying $85 billion of government debt a month with the printing press. I suspect that Ben Bernanke himself is not too unhappy with this; nor is his Princeton Keynesian counterpart Paul Krugman.
Taxes
News
Politico | Obamacare medical device tax assumes big role in spending battle
Along with a one-year delay in the president’s health law, House Republicans have included provisions repealing the 2.3 percent tax on medical devices in their bill to fund federal agencies into the next fiscal year. And some have suggested the move to wipe out that tax might — at some point— become a path to compromise with the Senate. But Senate Democratic leaders have so far opposed the device tax as part of a short-term spending bill.
Politico | Obamacare medical device tax assumes big role in spending battle
Along with a one-year delay in the president’s health law, House Republicans have included provisions repealing the 2.3 percent tax on medical devices in their bill to fund federal agencies into the next fiscal year. And some have suggested the move to wipe out that tax might — at some point— become a path to compromise with the Senate. But Senate Democratic leaders have so far opposed the device tax as part of a short-term spending bill.
Employment
News
CNN Money | Key report on jobs at risk in shutdown
The closely-watched monthly jobs report set for release on Friday could be delayed if the federal government shuts down.
FOX Business | Siemens to Slash 15,000 Jobs
Siemens (SI) revealed plans to cut a total of 15,000 jobs worldwide before the end of its next fiscal year, as the German industrial company moves forward with a two-year restructuring program.
CNN Money | Is Obamacare a jobs killer?
Nine out of 14 economists polled by CNNMoney said businesses are putting off hiring in light of health care reform, which stipulates that employers with 50 or more workers provide affordable health insurance starting in 2015.
Econ Comments & Analysis
Mercatus | Tale of Two Labor Markets in Virginia
Virginia has weathered the labor market turmoil of the past five years much better than other states have. Its mid-year unemployment rate was 5.5 percent, compared to 7.6 percent nationally. But there are two distinct labor markets in Virginia — (1) persons employed directly or indirectly by the public sector, and (2) Virginia’s “real” private sector. While the former — highly concentrated in the suburbs of D.C. — prospered during the Great Recession and continues to flourish, the latter is struggling.
CNN Money | Key report on jobs at risk in shutdown
The closely-watched monthly jobs report set for release on Friday could be delayed if the federal government shuts down.
FOX Business | Siemens to Slash 15,000 Jobs
Siemens (SI) revealed plans to cut a total of 15,000 jobs worldwide before the end of its next fiscal year, as the German industrial company moves forward with a two-year restructuring program.
CNN Money | Is Obamacare a jobs killer?
Nine out of 14 economists polled by CNNMoney said businesses are putting off hiring in light of health care reform, which stipulates that employers with 50 or more workers provide affordable health insurance starting in 2015.
Econ Comments & Analysis
Mercatus | Tale of Two Labor Markets in Virginia
Virginia has weathered the labor market turmoil of the past five years much better than other states have. Its mid-year unemployment rate was 5.5 percent, compared to 7.6 percent nationally. But there are two distinct labor markets in Virginia — (1) persons employed directly or indirectly by the public sector, and (2) Virginia’s “real” private sector. While the former — highly concentrated in the suburbs of D.C. — prospered during the Great Recession and continues to flourish, the latter is struggling.
Budget
News
Bloomberg | First U.S. Shutdown in 17 Years Imminent With No Talks
The U.S. government stands poised for its first partial shutdown in 17 years at midnight tonight, after a weekend with no signs of negotiations or compromise from the Congress or the White House.
National Journal | State of Play: Setting Up a Government Shutdown
The Senate is scheduled to come back today at 2:00 p.m. At that point, as Senate Majority Leader Harry Reid has indicated, the Senate will reject the continuing resolution to fund the government passed by the House on Sunday morning. That resolution would delay Obamacare for one year and repeal the medical-device tax. If no measure to fund the government is agreed to by the House and Senate by tonight, the government will shut down.
CNN Money | Rating agencies an afterthought in debt ceiling fight
Standard & Poor's made headlines and roiled world markets following the last debt ceiling crisis, in 2011, when it cut the United States' sterling AAA rating to AA+. The rating agency cited concerns about the nation's long-term debt and its dysfunctional policy making.
Econ Comments & Analysis
Fortune | 3 ways to abolish the debt ceiling
As the nation braces for a partial government shutdown, lawmakers have another mess to tackle: The debt ceiling, which must be raised by Oct. 17 or the Treasury will run out of borrowing option to pay the federal government's bills.
NBER | Advance Refundings of Municipal Bonds
Municipal bonds are often "advance refunded." Bonds that are not yet callable are defeased by creating a trust that pays the interest up to the call date, and pays the call price.
Blogs
Heritage Foundation | Obama Debt Limit Proposal: We Spend More, You Pay More
During remarks given after the passage of the Senate continuing resolution today, President Obama stressed once again his unwillingness to work with Republicans to find spending cuts before increasing the debt ceiling, while suggesting that he was otherwise eager to find a solution to America’s fiscal future.
Bloomberg | First U.S. Shutdown in 17 Years Imminent With No Talks
The U.S. government stands poised for its first partial shutdown in 17 years at midnight tonight, after a weekend with no signs of negotiations or compromise from the Congress or the White House.
National Journal | State of Play: Setting Up a Government Shutdown
The Senate is scheduled to come back today at 2:00 p.m. At that point, as Senate Majority Leader Harry Reid has indicated, the Senate will reject the continuing resolution to fund the government passed by the House on Sunday morning. That resolution would delay Obamacare for one year and repeal the medical-device tax. If no measure to fund the government is agreed to by the House and Senate by tonight, the government will shut down.
CNN Money | Rating agencies an afterthought in debt ceiling fight
Standard & Poor's made headlines and roiled world markets following the last debt ceiling crisis, in 2011, when it cut the United States' sterling AAA rating to AA+. The rating agency cited concerns about the nation's long-term debt and its dysfunctional policy making.
Econ Comments & Analysis
Fortune | 3 ways to abolish the debt ceiling
As the nation braces for a partial government shutdown, lawmakers have another mess to tackle: The debt ceiling, which must be raised by Oct. 17 or the Treasury will run out of borrowing option to pay the federal government's bills.
NBER | Advance Refundings of Municipal Bonds
Municipal bonds are often "advance refunded." Bonds that are not yet callable are defeased by creating a trust that pays the interest up to the call date, and pays the call price.
Blogs
Heritage Foundation | Obama Debt Limit Proposal: We Spend More, You Pay More
During remarks given after the passage of the Senate continuing resolution today, President Obama stressed once again his unwillingness to work with Republicans to find spending cuts before increasing the debt ceiling, while suggesting that he was otherwise eager to find a solution to America’s fiscal future.
Friday, September 27, 2013
General Economics
News
Bloomberg | Consumer Spending in U.S. Climbs 0.3% as Incomes Pick Up
Household purchases, which account for about 70 percent of the economy, climbed 0.3 percent after a revised 0.2 percent advance in July that was more than previously estimated.
FoxBusiness | Consumer Sentiment Falls to 5-Month Low
The Thomson Reuters/University of Michigan's final reading on the overall index on consumer sentiment slipped to 77.5 in September from 82.1 in August - the lowest final reading since April.
Bloomberg | Euro-Area Confidence Increases as Recovery Takes Hold
An index of executive and consumer sentiment rose for a fifth month to 96.9 from a revised 95.3 in August, the European Commission in Brussels said today. That beat the median estimate of 96 in a Bloomberg survey of 26 economists.
Econ Comments & Analysis
WSJ | Some Economic Data Face Budget Ax
Federal Agencies Move to Cut Scope of Reports Amid Budget Squeeze.
Bloomberg | Three Unlearned Lessons From the Financial Crisis
The financial crisis was devastating; we haven’t ended the problems associated with “too big to fail” financial institutions; and we must force the biggest banks to break up -- or risk dire consequences.
Blogs
The Economist | Did slavery make economic sense?
Of course any account of the economic effect of slavery should note the effect of treating human beings as capital equipment. The direct impact on the utility of the slaves themselves of this condition represented a terrible economic cost.
The Economist | Fiddling the data
Up until around 2004, the net global trade balance was negative. Some people put this down to underreporting of investment income. But since then, the global trade balance has been positive.
Bloomberg | Consumer Spending in U.S. Climbs 0.3% as Incomes Pick Up
Household purchases, which account for about 70 percent of the economy, climbed 0.3 percent after a revised 0.2 percent advance in July that was more than previously estimated.
FoxBusiness | Consumer Sentiment Falls to 5-Month Low
The Thomson Reuters/University of Michigan's final reading on the overall index on consumer sentiment slipped to 77.5 in September from 82.1 in August - the lowest final reading since April.
Bloomberg | Euro-Area Confidence Increases as Recovery Takes Hold
An index of executive and consumer sentiment rose for a fifth month to 96.9 from a revised 95.3 in August, the European Commission in Brussels said today. That beat the median estimate of 96 in a Bloomberg survey of 26 economists.
Econ Comments & Analysis
WSJ | Some Economic Data Face Budget Ax
Federal Agencies Move to Cut Scope of Reports Amid Budget Squeeze.
Bloomberg | Three Unlearned Lessons From the Financial Crisis
The financial crisis was devastating; we haven’t ended the problems associated with “too big to fail” financial institutions; and we must force the biggest banks to break up -- or risk dire consequences.
Blogs
The Economist | Did slavery make economic sense?
Of course any account of the economic effect of slavery should note the effect of treating human beings as capital equipment. The direct impact on the utility of the slaves themselves of this condition represented a terrible economic cost.
The Economist | Fiddling the data
Up until around 2004, the net global trade balance was negative. Some people put this down to underreporting of investment income. But since then, the global trade balance has been positive.
Health Care
News
CNN Money | Obamacare delay for small business exchanges
The latest victim of Obamacare delays: small business owners.
National Journal | Obamacare Won't Transform America—Yet
Right now, it doesn't look like the most dramatic overhaul ever. After a few years, though, that could change.
CNN Money | Will young people pay a lot more under Obamacare?
There are many assumptions about what the effects of Obamacare will be. This series aims to separate myths from realities and answer questions surrounding the Affordable Care Act.
Econ Comments & Analysis
Forbes | On October 1, Obamacare's Price Tag Will Surprise Americans
On October 1, the insurance exchanges will commence operations. These exchanges are supposed to be where people without insurance through an employer go to find health insurance.
Blogs
Heritage Foundation | 1,850,400 Minutes—and Yet Obamacare STILL Isn’t Working
The Administration has had nearly two million minutes to implement this law. It hasn’t worked—and it won’t work. The message is clear:
CNN Money | Obamacare delay for small business exchanges
The latest victim of Obamacare delays: small business owners.
National Journal | Obamacare Won't Transform America—Yet
Right now, it doesn't look like the most dramatic overhaul ever. After a few years, though, that could change.
CNN Money | Will young people pay a lot more under Obamacare?
There are many assumptions about what the effects of Obamacare will be. This series aims to separate myths from realities and answer questions surrounding the Affordable Care Act.
Econ Comments & Analysis
Forbes | On October 1, Obamacare's Price Tag Will Surprise Americans
On October 1, the insurance exchanges will commence operations. These exchanges are supposed to be where people without insurance through an employer go to find health insurance.
Blogs
Heritage Foundation | 1,850,400 Minutes—and Yet Obamacare STILL Isn’t Working
The Administration has had nearly two million minutes to implement this law. It hasn’t worked—and it won’t work. The message is clear:
Monetary
Econ Comments & Analysis
Market Watch | Fed's Rosengren criticizes SEC money-market rule
The agency should drop one of its proposals that would allow money market funds experiencing a surge of redemptions to impose fees on investors who seek to pull their capital out or allow the funds directors to temporarily block investor redemptions, he said.
"Bloomberg |
Where Is the Panic Over Deflation?"
The Bureau of Economic Analysis has revised its estimates for the personal consumption expenditures price index. It's an important number, because this is the index the Federal Reserve targets. And remember, it's aiming for inflation of 2 percent.
RCM | Orthodox Fed Approach to 'Deflation' Authors Our Woes
The idea and concept of inflation is relatively straightforward, but in practice it is an unmitigated mess.
Blogs
WSJ: Real Time Economics | Inflation Remains Far From Fed Target
Inflation in August remained far away from the Federal Reserve’s target, a factor that could make central bankers even more hesitant to pare back their support for the economy.
The Economist | Debt and demand
If you create higher inflation you don't need low real interest rates to solve the demand problem; it's already solved!
WSJ: Real Time Economics | Fed’s Evans Suggests Tapering Could Start Later Than October
Federal Reserve Bank of Chicago President Charles Evans said Friday that the U.S. central bank could start reducing its $85 billion-a-month bond-buying program at its October policy meeting, but it could happen later than that.
Market Watch | Fed's Rosengren criticizes SEC money-market rule
The agency should drop one of its proposals that would allow money market funds experiencing a surge of redemptions to impose fees on investors who seek to pull their capital out or allow the funds directors to temporarily block investor redemptions, he said.
"Bloomberg |
Where Is the Panic Over Deflation?"
The Bureau of Economic Analysis has revised its estimates for the personal consumption expenditures price index. It's an important number, because this is the index the Federal Reserve targets. And remember, it's aiming for inflation of 2 percent.
RCM | Orthodox Fed Approach to 'Deflation' Authors Our Woes
The idea and concept of inflation is relatively straightforward, but in practice it is an unmitigated mess.
Blogs
WSJ: Real Time Economics | Inflation Remains Far From Fed Target
Inflation in August remained far away from the Federal Reserve’s target, a factor that could make central bankers even more hesitant to pare back their support for the economy.
The Economist | Debt and demand
If you create higher inflation you don't need low real interest rates to solve the demand problem; it's already solved!
WSJ: Real Time Economics | Fed’s Evans Suggests Tapering Could Start Later Than October
Federal Reserve Bank of Chicago President Charles Evans said Friday that the U.S. central bank could start reducing its $85 billion-a-month bond-buying program at its October policy meeting, but it could happen later than that.
Taxes
News
Bloomberg | Spain Rules Out Tax Hikes to Meet 2014 Budget Goals
Spanish Budget Minister Cristobal Montoro ruled out further tax increases for next year, banking on a return to growth to trim the European Union’s widest deficit.
Bloomberg | Spain Rules Out Tax Hikes to Meet 2014 Budget Goals
Spanish Budget Minister Cristobal Montoro ruled out further tax increases for next year, banking on a return to growth to trim the European Union’s widest deficit.
Employment
News
CNN Money | Federal furlough notices in next 24-36 hours
Barring a sudden turn in stalemated budget talks, federal workers will begin to get verbal furlough notices in the next 24 to 36 hours, according to a top union official briefed by the White House budget office on Thursday.
WSJ | Job Market Embraces Massive Online Courses
Seeking Better-Trained Workers, AT&T, Google and Other Firms Help Design and Even Fund Web-Based College Classes.
CNN Money | Federal furlough notices in next 24-36 hours
Barring a sudden turn in stalemated budget talks, federal workers will begin to get verbal furlough notices in the next 24 to 36 hours, according to a top union official briefed by the White House budget office on Thursday.
WSJ | Job Market Embraces Massive Online Courses
Seeking Better-Trained Workers, AT&T, Google and Other Firms Help Design and Even Fund Web-Based College Classes.
Budget
News
Politico | Government shutdown: GOP leaders seeking support for debt ceiling hike
Top Republicans circled the House floor Thursday afternoon attempting to build support for the debt ceiling bill, the centerpiece of their fall fiscal strategy.
National Journal | Drama Intensifies Over Government Funding and Debt Ceiling on Both Sides of Capitol
A bicameral sparring match between Democratic and Republican leaders—as well as within the GOP conferences in both chambers—raged on Thursday over funding the government and paying its debts, with little prospect of a resolution before the weekend.
CNN Money | Debt ceiling cash crunch: Millions won't get paid
Some Republicans say that in that situation Treasury should prioritize who gets paid first. Their proposal: Pay bondholders and Social Security recipients first. Some GOP lawmakers add active-duty military to the list.
Politico | Government shutdown: GOP leaders seeking support for debt ceiling hike
Top Republicans circled the House floor Thursday afternoon attempting to build support for the debt ceiling bill, the centerpiece of their fall fiscal strategy.
National Journal | Drama Intensifies Over Government Funding and Debt Ceiling on Both Sides of Capitol
A bicameral sparring match between Democratic and Republican leaders—as well as within the GOP conferences in both chambers—raged on Thursday over funding the government and paying its debts, with little prospect of a resolution before the weekend.
CNN Money | Debt ceiling cash crunch: Millions won't get paid
Some Republicans say that in that situation Treasury should prioritize who gets paid first. Their proposal: Pay bondholders and Social Security recipients first. Some GOP lawmakers add active-duty military to the list.
Thursday, September 26, 2013
General Economics
News
Bloomberg | Economy in U.S. Expanded at a 2.5% Annual Rate Last Quarter
The economy expanded at faster pace in the second quarter from the previous three months, a sign the U.S. was weathering federal budget cutbacks and higher taxes.
CNN Money | Mortgage rates dip as Fed holds stimulus steady
Mortgage interest rates fell after the Federal Reserve said last week that it won't pare back its stimulus program.
Bloomberg | Pending Sales of Existing Homes in U.S. Decreased 1.6% in August
Fewer Americans signed contracts in August to buy previously owned homes, a sign that rising mortgage rates may have slowed housing market momentum.
Econ Comments & Analysis
Washington Times | The late, great middle class
Mr. Obama promised to restore the middle class. In truth, he has enacted the very policies that have done it the most damage in years. That paradox may explain why his base of support remains the very rich and the very poor. Goldman Sachs, federal bureaucrats and aid recipients are helped in a way that the strapped hardware store owner, Starbucks barista and part-time welder are not.
Fortune | Corporate profits: Not as good as they seem
Margins, the percentage of each sale that ends up as profit, as measured by GDP, have never been this high. They hit a record near the beginning of 2011, and have continued to march up. At the end of June, corporate profit margins were 11.5%. That's two percentage points higher than the roughly 9.5% they peaked at in 2006.
Forbes | Why Does The U.S. Economy Sag? Look No Further Than The Number 17
The significant efforts in recent years to measure economic freedom did not come from universities. They came from think tanks. These efforts are a powerful proof that think tanks are an essential institution in civil society. More than that, the “freedom truths” they affirm are vital for the world and the United States. This is crucial information that we all need to know.
CRS | Shutdown of the Federal Government: Causes, Processes, and Effects
When federal agencies and programs lack appropriated funding, they experience a funding gap. Under the Antideficiency Act, they must cease operations, except in certain emergency situations or when law authorizes continued activity.
Blogs
WSJ | Vital Signs: Second-Quarter GDP Details Are Plus for Third-Quarter Growth
The second quarter is far back in the rearview mirror—but the latest estimate of the spring gross domestic product offers one good bit of news for third-quarter growth.
Bloomberg | Economy in U.S. Expanded at a 2.5% Annual Rate Last Quarter
The economy expanded at faster pace in the second quarter from the previous three months, a sign the U.S. was weathering federal budget cutbacks and higher taxes.
CNN Money | Mortgage rates dip as Fed holds stimulus steady
Mortgage interest rates fell after the Federal Reserve said last week that it won't pare back its stimulus program.
Bloomberg | Pending Sales of Existing Homes in U.S. Decreased 1.6% in August
Fewer Americans signed contracts in August to buy previously owned homes, a sign that rising mortgage rates may have slowed housing market momentum.
Econ Comments & Analysis
Washington Times | The late, great middle class
Mr. Obama promised to restore the middle class. In truth, he has enacted the very policies that have done it the most damage in years. That paradox may explain why his base of support remains the very rich and the very poor. Goldman Sachs, federal bureaucrats and aid recipients are helped in a way that the strapped hardware store owner, Starbucks barista and part-time welder are not.
Fortune | Corporate profits: Not as good as they seem
Margins, the percentage of each sale that ends up as profit, as measured by GDP, have never been this high. They hit a record near the beginning of 2011, and have continued to march up. At the end of June, corporate profit margins were 11.5%. That's two percentage points higher than the roughly 9.5% they peaked at in 2006.
Forbes | Why Does The U.S. Economy Sag? Look No Further Than The Number 17
The significant efforts in recent years to measure economic freedom did not come from universities. They came from think tanks. These efforts are a powerful proof that think tanks are an essential institution in civil society. More than that, the “freedom truths” they affirm are vital for the world and the United States. This is crucial information that we all need to know.
CRS | Shutdown of the Federal Government: Causes, Processes, and Effects
When federal agencies and programs lack appropriated funding, they experience a funding gap. Under the Antideficiency Act, they must cease operations, except in certain emergency situations or when law authorizes continued activity.
Blogs
WSJ | Vital Signs: Second-Quarter GDP Details Are Plus for Third-Quarter Growth
The second quarter is far back in the rearview mirror—but the latest estimate of the spring gross domestic product offers one good bit of news for third-quarter growth.
Health Care
News
Politico | Exchanges may have high out-of-pocket costs
Consumers may have to dig a little deeper into their wallets to pay for health care in the Obamacare insurance exchanges, according to a new analysis by Avalere Health.
CNN Money | Are employers dumping health benefits because of Obamacare?
There are many assumptions about what the effects of Obamacare will be. This series aims to separate myths from realities and answer questions surrounding the Affordable Care Act.
Econ Comments & Analysis
Washington Times | No escape from Obamacare
Americans want relief from Obamacare, but they probably won’t get it. Sen. Ted Cruz of Texas tried to shame his colleagues out of the bad health care idea — for 21 hours — but senators by act of Congress have no shame. The White House isn’t budging from the Oct. 1 implementation date for Obamacare. This puts House conservatives in a pickle of considerable size.
Real Clear Markets | With Worried Uncertainty, Americans Tip Toe Toward Obamacare
With the implementation of the Patient Protection and Affordable Care Act just days away, it may be prudent to revisit the original premises for this radical restructuring of health care delivery in the United States. Assessing the original problem may provide insights into the effectiveness of the new law.
Blogs
Heritage Foundation | Watch Out, 20-Somethings: How Obamacare Hits Young People
“Insurance premiums are going to increase for a lot of consumers, but young adults are going to be hit the hardest,” explained Heritage expert Alyene Senger on “Fox and Friends.”
Politico | Exchanges may have high out-of-pocket costs
Consumers may have to dig a little deeper into their wallets to pay for health care in the Obamacare insurance exchanges, according to a new analysis by Avalere Health.
CNN Money | Are employers dumping health benefits because of Obamacare?
There are many assumptions about what the effects of Obamacare will be. This series aims to separate myths from realities and answer questions surrounding the Affordable Care Act.
Econ Comments & Analysis
Washington Times | No escape from Obamacare
Americans want relief from Obamacare, but they probably won’t get it. Sen. Ted Cruz of Texas tried to shame his colleagues out of the bad health care idea — for 21 hours — but senators by act of Congress have no shame. The White House isn’t budging from the Oct. 1 implementation date for Obamacare. This puts House conservatives in a pickle of considerable size.
Real Clear Markets | With Worried Uncertainty, Americans Tip Toe Toward Obamacare
With the implementation of the Patient Protection and Affordable Care Act just days away, it may be prudent to revisit the original premises for this radical restructuring of health care delivery in the United States. Assessing the original problem may provide insights into the effectiveness of the new law.
Blogs
Heritage Foundation | Watch Out, 20-Somethings: How Obamacare Hits Young People
“Insurance premiums are going to increase for a lot of consumers, but young adults are going to be hit the hardest,” explained Heritage expert Alyene Senger on “Fox and Friends.”
Monetary
News
Bloomberg | IMF Urges U.S. Congress to Find Agreement to Avoid Shutdown
The International Monetary Fund urged U.S. lawmakers to quickly find a fiscal agreement to avoid a federal government shutdown and raise its $16.7 trillion borrowing limit.
Bloomberg | Inflation Expectations Drop to Lowest Since 2010, JPMorgan Says
Investor expectations for U.S. inflation have declined to the lowest in more than three years even as data point to economic recovery, JPMorgan Chase & Co., said, citing surveys.
Econ Comments & Analysis
CNBC | The Fed's 'hidden agenda' behind money-printing
The markets were surprised when the Federal Reserve did not announce a tapering of the quantitative easing bond buying program at its September meeting. Indeed, its signal to the market that it was keeping interest rates low was welcome, but there may be a hidden agenda.
Bloomberg | Deciphering Some Mumbo Jumbo by the Fed
“The tightening of financial conditions observed in recent months, if sustained, could slow the pace of improvement in the economy and the labor market.” Federal Reserve Chairman Ben Bernanke, Sept. 18
FOX Business | Fed's Stein: More Predictability Needed About Taper
The Federal Reserve should make itself more predictable about scaling back its massive bond buying campaign, a top U.S. central banker said on Thursday, acknowledging that it had confused markets by not tapering at its meeting last week.
Mercatus | The FSOC's Latest Careless Too Big to Fail Decision
Last week the Financial Stability Oversight Council designated Prudential Financial as a systemically important financial institution in need of regulation by the Federal Reserve. The FSOC's careless decision to slap a too-big-to-fail label on Prudential undermines-rather than secures-financial stability.
AEI | Dodd-Frank's costs will be paid for by low-income bank customers
The fifth anniversary of the financial crisis has come and gone. There was much discussion about safety and soundness of big banks and progress of new safeguards, such as the Dodd-Frank Act and the Consumer Financial Protection Bureau (CFPB). There was shockingly little discussion about how consumers have fared.
Blogs
Economist | The "setting the mood" approach to monetary policy
A colleague emailed me a Reuters story noting that, according to polling, the vast majority of Americans have no idea what quantitative easing is. This is a result I find neither surprising nor discouraging; surely the public has better things to do than learn about QE. At any rate, the colleague shared the story as part of an ongoing discussion about just how central bank expectations-setting works. I dashed off some thoughts back to him in an email, and I thought I may as well share them with the internet. Begin communication.
Bloomberg | IMF Urges U.S. Congress to Find Agreement to Avoid Shutdown
The International Monetary Fund urged U.S. lawmakers to quickly find a fiscal agreement to avoid a federal government shutdown and raise its $16.7 trillion borrowing limit.
Bloomberg | Inflation Expectations Drop to Lowest Since 2010, JPMorgan Says
Investor expectations for U.S. inflation have declined to the lowest in more than three years even as data point to economic recovery, JPMorgan Chase & Co., said, citing surveys.
Econ Comments & Analysis
CNBC | The Fed's 'hidden agenda' behind money-printing
The markets were surprised when the Federal Reserve did not announce a tapering of the quantitative easing bond buying program at its September meeting. Indeed, its signal to the market that it was keeping interest rates low was welcome, but there may be a hidden agenda.
Bloomberg | Deciphering Some Mumbo Jumbo by the Fed
“The tightening of financial conditions observed in recent months, if sustained, could slow the pace of improvement in the economy and the labor market.” Federal Reserve Chairman Ben Bernanke, Sept. 18
FOX Business | Fed's Stein: More Predictability Needed About Taper
The Federal Reserve should make itself more predictable about scaling back its massive bond buying campaign, a top U.S. central banker said on Thursday, acknowledging that it had confused markets by not tapering at its meeting last week.
Mercatus | The FSOC's Latest Careless Too Big to Fail Decision
Last week the Financial Stability Oversight Council designated Prudential Financial as a systemically important financial institution in need of regulation by the Federal Reserve. The FSOC's careless decision to slap a too-big-to-fail label on Prudential undermines-rather than secures-financial stability.
AEI | Dodd-Frank's costs will be paid for by low-income bank customers
The fifth anniversary of the financial crisis has come and gone. There was much discussion about safety and soundness of big banks and progress of new safeguards, such as the Dodd-Frank Act and the Consumer Financial Protection Bureau (CFPB). There was shockingly little discussion about how consumers have fared.
Blogs
Economist | The "setting the mood" approach to monetary policy
A colleague emailed me a Reuters story noting that, according to polling, the vast majority of Americans have no idea what quantitative easing is. This is a result I find neither surprising nor discouraging; surely the public has better things to do than learn about QE. At any rate, the colleague shared the story as part of an ongoing discussion about just how central bank expectations-setting works. I dashed off some thoughts back to him in an email, and I thought I may as well share them with the internet. Begin communication.
Taxes
News
Politico | Amy Klobuchar, Orrin Hatch warn against repealing medical device tax now
The leading Senate backers of a push to repeal the medical device tax are warning that the government funding bill currently under consideration isn’t the right venue for this fight.
Econ Comments & Analysis
Real Clear Markets | Why Tax Subsidies For Plant & Equipment Are Anti-Growth
Construction magnate Dennis Washington is a billionaire today, but at the age of 29 he quit a good job working for his uncle after a dispute over a missed day of work. Another job offer immediately came his way once he resigned, but rather than be someone else's employee yet again, Washington started his own company.
Politico | Amy Klobuchar, Orrin Hatch warn against repealing medical device tax now
The leading Senate backers of a push to repeal the medical device tax are warning that the government funding bill currently under consideration isn’t the right venue for this fight.
Econ Comments & Analysis
Real Clear Markets | Why Tax Subsidies For Plant & Equipment Are Anti-Growth
Construction magnate Dennis Washington is a billionaire today, but at the age of 29 he quit a good job working for his uncle after a dispute over a missed day of work. Another job offer immediately came his way once he resigned, but rather than be someone else's employee yet again, Washington started his own company.
Employment
News
Bloomberg | Labor Estimate Shows U.S. Payrolls Revised Up in Year to March
The Labor Department’s preliminary estimate of employment in the year ended March 2013 was revised up by 345,000 workers, reflecting the addition of employees who weren’t previously counted in the monthly payrolls report.
CNN Money | California raises minimum wage to $10
Millions of California's hourly workers will become among of the best paid in the country next year under a new minimum wage law enacted Wednesday.
Bloomberg | Jobless Claims in U.S. Unexpectedly Decline to 305,000
The number of Americans filing applications for unemployment benefits unexpectedly declined last week, showing further progress in the labor market.
Blogs
WSJ | What Happens to Jobs Report if Government Shuts Down?
Federal bureaucrats are scrambling to determine which government functions should be deemed “essential” in the event of a partial government shutdown. Next week’s employment report seems to lie squarely on the chopping block.
Bloomberg | Labor Estimate Shows U.S. Payrolls Revised Up in Year to March
The Labor Department’s preliminary estimate of employment in the year ended March 2013 was revised up by 345,000 workers, reflecting the addition of employees who weren’t previously counted in the monthly payrolls report.
CNN Money | California raises minimum wage to $10
Millions of California's hourly workers will become among of the best paid in the country next year under a new minimum wage law enacted Wednesday.
Bloomberg | Jobless Claims in U.S. Unexpectedly Decline to 305,000
The number of Americans filing applications for unemployment benefits unexpectedly declined last week, showing further progress in the labor market.
Blogs
WSJ | What Happens to Jobs Report if Government Shuts Down?
Federal bureaucrats are scrambling to determine which government functions should be deemed “essential” in the event of a partial government shutdown. Next week’s employment report seems to lie squarely on the chopping block.
Budget
News
Market Watch | Boehner: No debt-ceiling hike unless spending cut
The Republican leader of the U.S. House said Thursday his party plans to push a bill that ties an increase in how much the government can borrow - the so-called debt ceiling - to more cuts in federal spending.
Econ Comments & Analysis
WSJ | Saving the Sequester
One cost of the media circus around Ted Cruz is that almost no one is following the classic Washington misdirection play over the automatic sequester spending cuts. While right and left are preoccupied with their hero or bugbear, the politicians are attempting to break the spending caps.
CBO | Testimony on The 2013 Long-Term Budget Outlook
In brief, between 2009 and 2012, the federal government recorded the largest budget deficits relative to the size of the economy since 1946, causing federal debt to soar. Federal debt held by the public is now about 73 percent of the economy’s annual output, or gross domestic product (GDP). That percentage is higher than at any point in U.S. history except a brief period around World War II, and it is twice the percentage at the end of 2007.
Blogs
Heritage Foundation | Plan to Suspend Debt Limit Means Debt Would Rise to $17.8 Trillion
Treasury Secretary Jack Lew announced a new debt ceiling deadline today, urging congressional lawmakers and the President to come to an agreement concerning the nation’s borrowing authority by October 17. Republicans are proposing a $1.1 trillion increase in the debt limit by suspending the cap through December 2014. The big question is: Will lawmakers take control of the key drivers of soaring spending and debt as part of an increase?
NY Times | Detroit Spent Billions Extra on Pensions
Detroit’s municipal pension fund made payments for decades to retirees, active workers and others above and beyond normal benefits, costing the struggling city billions of dollars and helping push it into bankruptcy, according to people who have reviewed the payments.
Heritage Foundation | Morning Bell: $43,000 Per Household
Did you know that since President Obama came into office, the debt limit has been raised seven times? With those increases, Congress has added $43,000 in debt for every American household in just the last four years.
Market Watch | Boehner: No debt-ceiling hike unless spending cut
The Republican leader of the U.S. House said Thursday his party plans to push a bill that ties an increase in how much the government can borrow - the so-called debt ceiling - to more cuts in federal spending.
Econ Comments & Analysis
WSJ | Saving the Sequester
One cost of the media circus around Ted Cruz is that almost no one is following the classic Washington misdirection play over the automatic sequester spending cuts. While right and left are preoccupied with their hero or bugbear, the politicians are attempting to break the spending caps.
CBO | Testimony on The 2013 Long-Term Budget Outlook
In brief, between 2009 and 2012, the federal government recorded the largest budget deficits relative to the size of the economy since 1946, causing federal debt to soar. Federal debt held by the public is now about 73 percent of the economy’s annual output, or gross domestic product (GDP). That percentage is higher than at any point in U.S. history except a brief period around World War II, and it is twice the percentage at the end of 2007.
Blogs
Heritage Foundation | Plan to Suspend Debt Limit Means Debt Would Rise to $17.8 Trillion
Treasury Secretary Jack Lew announced a new debt ceiling deadline today, urging congressional lawmakers and the President to come to an agreement concerning the nation’s borrowing authority by October 17. Republicans are proposing a $1.1 trillion increase in the debt limit by suspending the cap through December 2014. The big question is: Will lawmakers take control of the key drivers of soaring spending and debt as part of an increase?
NY Times | Detroit Spent Billions Extra on Pensions
Detroit’s municipal pension fund made payments for decades to retirees, active workers and others above and beyond normal benefits, costing the struggling city billions of dollars and helping push it into bankruptcy, according to people who have reviewed the payments.
Heritage Foundation | Morning Bell: $43,000 Per Household
Did you know that since President Obama came into office, the debt limit has been raised seven times? With those increases, Congress has added $43,000 in debt for every American household in just the last four years.
Wednesday, September 25, 2013
General Economics
News
Bloomberg | Demand for U.S. Capital Goods Increases Less Than Forecast
Orders for U.S. equipment such as computers and machinery climbed less than forecast in August, indicating a strengthening in business spending will take time to develop.
CNN Money | China rebound? Not so fast
Official statistics suggest that growth is stabilizing in China and manufacturing is on the upswing in the world's second-biggest economy.
Bloomberg | Americans in Poll Doubt Economy Rebound in Defiance of Forecasts
Americans are losing faith in the nation’s economic recovery even as forecasters expect growth to accelerate, according to a Bloomberg National Poll.
CNN Money | How income inequality hurts America
It's not just income inequality. It's lifespan inequality. And education inequality. And declining economic growth.
Bloomberg | Sales of New U.S. Homes Rose in August Following July Plunge
Purchases of new U.S. homes rose in August, capping the weakest two months this year, showing the fallout from mortgage rates at a two-year high is cooling the real-estate rebound.
Econ Comments & Analysis
Bloomberg | Lew Says Investors May Be Too Hopeful on Debt-Limit Debate
U.S. Treasury Secretary Jacob J. Lew said investor confidence that a deal can be struck to raise the debt limit is “a bit greater than it should be” and the government probably will have less than $50 billion in cash by mid-October.
Washington Times | The spreading war on seniors
In his 1994 book “Beyond Peace,” Richard Nixon predicted that our nation’s biggest challenge would not be war with a foreign enemy, but rather an internal “war” over how to allocate money within our borders. With our national debt about to exceed $17 trillion and another budget fight looming, his prediction is being realized.
Fortune | 3 reasons to save the 30-year fixed mortgage
As Washington talks about the future of mortgage finance giants Freddie Mac and Fannie Mae, some are asking if Americans should continue having easy access to a popular mortgage -- the 30-year, fixed-rate home loan.
Blogs
WSJ | Want to Know Where Home Prices Are Headed? Read the Papers
If policymakers had wanted to see signs of the housing bubble at the time it was inflating, perhaps they should have read local newspapers.
Economist | What we talk about when we talk about bubbles
Since March of last year the Case-Shiller 20-city home-price index has risen by 21%. Some of the markets within that index have risen even more; the Los Angeles index has doubled from its post-crisis bottom. Rising prices have many financial-market observers worried that the bubble is reinflating, helped along by low interest rates and a pipeline of mortgage credit owing to the Federal Reserve's purchases of mortgage-backed securities.
Bloomberg | Demand for U.S. Capital Goods Increases Less Than Forecast
Orders for U.S. equipment such as computers and machinery climbed less than forecast in August, indicating a strengthening in business spending will take time to develop.
CNN Money | China rebound? Not so fast
Official statistics suggest that growth is stabilizing in China and manufacturing is on the upswing in the world's second-biggest economy.
Bloomberg | Americans in Poll Doubt Economy Rebound in Defiance of Forecasts
Americans are losing faith in the nation’s economic recovery even as forecasters expect growth to accelerate, according to a Bloomberg National Poll.
CNN Money | How income inequality hurts America
It's not just income inequality. It's lifespan inequality. And education inequality. And declining economic growth.
Bloomberg | Sales of New U.S. Homes Rose in August Following July Plunge
Purchases of new U.S. homes rose in August, capping the weakest two months this year, showing the fallout from mortgage rates at a two-year high is cooling the real-estate rebound.
Econ Comments & Analysis
Bloomberg | Lew Says Investors May Be Too Hopeful on Debt-Limit Debate
U.S. Treasury Secretary Jacob J. Lew said investor confidence that a deal can be struck to raise the debt limit is “a bit greater than it should be” and the government probably will have less than $50 billion in cash by mid-October.
Washington Times | The spreading war on seniors
In his 1994 book “Beyond Peace,” Richard Nixon predicted that our nation’s biggest challenge would not be war with a foreign enemy, but rather an internal “war” over how to allocate money within our borders. With our national debt about to exceed $17 trillion and another budget fight looming, his prediction is being realized.
Fortune | 3 reasons to save the 30-year fixed mortgage
As Washington talks about the future of mortgage finance giants Freddie Mac and Fannie Mae, some are asking if Americans should continue having easy access to a popular mortgage -- the 30-year, fixed-rate home loan.
Blogs
WSJ | Want to Know Where Home Prices Are Headed? Read the Papers
If policymakers had wanted to see signs of the housing bubble at the time it was inflating, perhaps they should have read local newspapers.
Economist | What we talk about when we talk about bubbles
Since March of last year the Case-Shiller 20-city home-price index has risen by 21%. Some of the markets within that index have risen even more; the Los Angeles index has doubled from its post-crisis bottom. Rising prices have many financial-market observers worried that the bubble is reinflating, helped along by low interest rates and a pipeline of mortgage credit owing to the Federal Reserve's purchases of mortgage-backed securities.
Health Care
News
National Journal | Federal Employees Will Pay 4.4 Percent More Toward Health Care Premiums in 2014
Federal employees will pay 4.4 percent more toward their health insurance premiums in 2014, the Office of Personnel Management announced Tuesday.
National Journal | Obamacare Will Give Free Health Insurance to Some
Health insurance will be free for some Americans on the new Affordable Care Act exchanges, according to a Health and Human Services analysis released Wednesday on insurance costs.
Econ Comments & Analysis
Politico | Securing the health exchange network
It’s ironic this year that National Cybersecurity Awareness Month falls in October, because come Oct. 1, the new health insurance exchanges established under the Affordable Care Act go “live” — and they will unleash a host of new cyberactivity and cybersecurity threats that our health care system is not yet equipped to handle.
Washington Times | The grit and gumption to resist Obamacare
Today, the freedom of Americans to control their own health care needs is being threatened by massive governmental interference. Those attempting to fundamentally change America are attempting to take control of the most important thing any of us possesses: our health.
CATO | Three Defunding Myths
In less than a week, the continuing resolution (CR) that is currently funding the government will expire, possibly precipitating what one and all refer to as a “government shutdown.” This term is usually uttered in terms that suggest an event falling in severity somewhere between Hurricane Katrina and the zombie apocalypse.
Blogs
Heritage Foundation | What the Administration Didn’t Tell You About Obamacare Exchange Plans
Today the Department of Health and Human Services (HHS) released a report regarding premiums and plan offerings in Obamacare’s exchanges for next year. Despite the Administration’s claims, premiums are going up due to Obamacare—and the quality of the “coverage” is, in many cases, going down.
National Journal | Federal Employees Will Pay 4.4 Percent More Toward Health Care Premiums in 2014
Federal employees will pay 4.4 percent more toward their health insurance premiums in 2014, the Office of Personnel Management announced Tuesday.
National Journal | Obamacare Will Give Free Health Insurance to Some
Health insurance will be free for some Americans on the new Affordable Care Act exchanges, according to a Health and Human Services analysis released Wednesday on insurance costs.
Econ Comments & Analysis
Politico | Securing the health exchange network
It’s ironic this year that National Cybersecurity Awareness Month falls in October, because come Oct. 1, the new health insurance exchanges established under the Affordable Care Act go “live” — and they will unleash a host of new cyberactivity and cybersecurity threats that our health care system is not yet equipped to handle.
Washington Times | The grit and gumption to resist Obamacare
Today, the freedom of Americans to control their own health care needs is being threatened by massive governmental interference. Those attempting to fundamentally change America are attempting to take control of the most important thing any of us possesses: our health.
CATO | Three Defunding Myths
In less than a week, the continuing resolution (CR) that is currently funding the government will expire, possibly precipitating what one and all refer to as a “government shutdown.” This term is usually uttered in terms that suggest an event falling in severity somewhere between Hurricane Katrina and the zombie apocalypse.
Blogs
Heritage Foundation | What the Administration Didn’t Tell You About Obamacare Exchange Plans
Today the Department of Health and Human Services (HHS) released a report regarding premiums and plan offerings in Obamacare’s exchanges for next year. Despite the Administration’s claims, premiums are going up due to Obamacare—and the quality of the “coverage” is, in many cases, going down.
Monetary
News
WSJ | IMF Calls for Euro Zone to Create Central Budget Authority
The International Monetary Fund in a report Wednesday called for the euro zone to create a central budget authority to help absorb the shock of future economic crises that hit one part of the single currency area but not others.
Washington Times | Fed concerned about early trading after its recent meeting
The Federal Reserve is concerned about suspiciously heavy trading of gold futures after its meeting last week that may have been triggered by a premature release of market-sensitive information.
CNBC | Did the Fed just pop the stock market bubble?
You know it's a rough market when even Warren Buffett can't find a bargain. History's most famous value investor told CNBC a few days ago that stocks are now "fairly priced" and that a good buy is hard to find.
WSJ | IMF Calls for Euro Zone to Create Central Budget Authority
The International Monetary Fund in a report Wednesday called for the euro zone to create a central budget authority to help absorb the shock of future economic crises that hit one part of the single currency area but not others.
Washington Times | Fed concerned about early trading after its recent meeting
The Federal Reserve is concerned about suspiciously heavy trading of gold futures after its meeting last week that may have been triggered by a premature release of market-sensitive information.
CNBC | Did the Fed just pop the stock market bubble?
You know it's a rough market when even Warren Buffett can't find a bargain. History's most famous value investor told CNBC a few days ago that stocks are now "fairly priced" and that a good buy is hard to find.
Taxes
News
Politico | Tax reform’s status: Heard the latest rumors?
With lawmakers tight-lipped on their plans for the biggest overhaul of the Tax Code in a generation, lobbyists, staffers and others who collectively make up Washington’s tax world are resorting to the next best thing: swapping rumors.
Politico | IRS claim to regulate tax preparers has rough day in court
The push by the Internal Revenue Service to convince three appellate judges that congressional ambiguity grants the agency authority to regulate tax-return preparers may end up falling on the word “and.”
WSJ | French Budget Relies on Tax Rises
The French government Wednesday unveiled a 2014 budget that still relies on tax increases, threatening to dent household spending power and President François Hollande's record low popularity.
Politico | Tax reform’s status: Heard the latest rumors?
With lawmakers tight-lipped on their plans for the biggest overhaul of the Tax Code in a generation, lobbyists, staffers and others who collectively make up Washington’s tax world are resorting to the next best thing: swapping rumors.
Politico | IRS claim to regulate tax preparers has rough day in court
The push by the Internal Revenue Service to convince three appellate judges that congressional ambiguity grants the agency authority to regulate tax-return preparers may end up falling on the word “and.”
WSJ | French Budget Relies on Tax Rises
The French government Wednesday unveiled a 2014 budget that still relies on tax increases, threatening to dent household spending power and President François Hollande's record low popularity.
Employment
Blogs
Library of Economics | Optimal Minimum Wage?
David Lee of Princeton University and Emmanual Saez of University of California, Berkeley have an article in the Journal of Public Economics titled "Optimum Minimum Wage Policy in Competitive Labor Markets." It has two strange results, one that I understand and that depends crucially on a strong assumption that they don't even attempt to justify and the other that I don't understand unless the concept of "Pareto improvement" has changed dramatically.
Library of Economics | Optimal Minimum Wage?
David Lee of Princeton University and Emmanual Saez of University of California, Berkeley have an article in the Journal of Public Economics titled "Optimum Minimum Wage Policy in Competitive Labor Markets." It has two strange results, one that I understand and that depends crucially on a strong assumption that they don't even attempt to justify and the other that I don't understand unless the concept of "Pareto improvement" has changed dramatically.
Budget
News
National Journal | Fiscal Solution Continues to Crawl Forward
As Sen. Ted Cruz vowed to talk on the Senate floor about defunding Obamacare till he can no longer stand, Senate Democrats said they now want a Nov. 15 expiration date for legislation to fund the government and avoid a shutdown.
Bloomberg | Europe Sharing Fiscal Risks Would Avert Crises, IMF Says
Euro area countries should be prepared to lose some degree of control over their budget, pool resources to set up an insurance program and do common borrowing, economists at the International Monetary Fund said.
Econ Comments & Analysis
Real Clear Markets | It's Groundhog Day Over the Debt Ceiling
If you recently heard the news that Congress is debating the merits of raising the debt ceiling, don't think you have time-traveled back to 2011 or to 2012. In the absence of Congressional action, and barring some extraordinary measures, the debt ceiling is set to be breached sometime in the next several weeks, and the U.S. stands to gain nothing by not raising it.
WSJ | Happy Deficit Day, Uncle Sam
'Deficit Day" is here again, marking the day the U.S. government runs out of money and begins adding to the nation's already-enormous debt. Despite the $2.7 trillion the federal government collects every year from Americans in the form of income, payroll, corporate, estate and excise taxes, as well as tariffs, fees and other sources, on a calendar year basis the money runs out Sept. 25, at around 3 p.m.
National Journal | Fiscal Solution Continues to Crawl Forward
As Sen. Ted Cruz vowed to talk on the Senate floor about defunding Obamacare till he can no longer stand, Senate Democrats said they now want a Nov. 15 expiration date for legislation to fund the government and avoid a shutdown.
Bloomberg | Europe Sharing Fiscal Risks Would Avert Crises, IMF Says
Euro area countries should be prepared to lose some degree of control over their budget, pool resources to set up an insurance program and do common borrowing, economists at the International Monetary Fund said.
Econ Comments & Analysis
Real Clear Markets | It's Groundhog Day Over the Debt Ceiling
If you recently heard the news that Congress is debating the merits of raising the debt ceiling, don't think you have time-traveled back to 2011 or to 2012. In the absence of Congressional action, and barring some extraordinary measures, the debt ceiling is set to be breached sometime in the next several weeks, and the U.S. stands to gain nothing by not raising it.
WSJ | Happy Deficit Day, Uncle Sam
'Deficit Day" is here again, marking the day the U.S. government runs out of money and begins adding to the nation's already-enormous debt. Despite the $2.7 trillion the federal government collects every year from Americans in the form of income, payroll, corporate, estate and excise taxes, as well as tariffs, fees and other sources, on a calendar year basis the money runs out Sept. 25, at around 3 p.m.
Tuesday, September 24, 2013
General Economics
News
CNN Money | Home prices continue to climb
Home prices continued to climb in July, up 12.4% compared to a year earlier.
Bloomberg | Americans’ Confidence Falls on Concern Over Job Outlook: Economy
Growing concern over the outlook for hiring and wages shook U.S. consumer sentiment this month, raising the risk spending will contribute less to growth.
CNN Money | Made in America' revival gathers pace
The 'Made in America' revival is gaining momentum with a majority of manufacturing executives now ready to consider pulling some production back from China.
WSJ | Number Caught Entering U.S. Illegally Rises Again
Data add fuel to debate over beefed-up border security.
Econ Comments & Analysis
CNN Money | Why the commercial real estate crash never came
After the housing market collapsed, many economists predicted a similar fate for commercial real estate. Here's why it never happened.
RCM | Congress Writes the Recipe for Another Housing Crisis
Because of a barrage of criticism by the housing industry, the regulators recently proposed a revised definition of QRMs. Most notably, the latest proposal required no down payment by the borrower and increased the allowable debt-to-income ratio of the borrower from 36% to 43%.
Washington Times | EDITORIAL: Countdown to collision
Republicans have a week to show they mean what they say.
NBER | The Effects of Mandatory Transparency in Financial Market Design: Evidence from the Corporate Bond Market
This paper studies how mandatory transparency affects trading in the corporate bond market. In July 2002, TRACE began requiring the public dissemination of post-trade price and volume information for corporate bonds.
Mercatus Center | Bipartisan Corporate Welfare
More than a century ago, the French economist and polemicist Frederic Bastiat noted that many economic fallacies persist because the beneficiaries of government actions are easily visible while the victims are harder to identify.
Blogs
WSJ: Real Time Economics | A Look at Case-Shiller by Metro Area
The composite 20-city home price index, a key gauge of U.S. home prices, was up 12.4% in July from a year earlier.
The Economist | Beyond "mainstream economics"
“Standard economic policies,” he writes, “aim for growth, full stop. Sustainable development aims for growth that is broadly shared across the income scale and that is also environmentally sound.”
Econlib | Of Mice and Men, Morals and Markets
Good morals make for good markets is hardly a contentious claim. Reputations for honest dealing grease the wheels of commerce.
WSJ: Real Time Economics | Home Prices Rising at Fastest Pace Since Start of Bubble
Home prices rose faster during the first seven months of 2013 than any year since 2004, the year that marked the beginning of the home-price bubble.
CNN Money | Home prices continue to climb
Home prices continued to climb in July, up 12.4% compared to a year earlier.
Bloomberg | Americans’ Confidence Falls on Concern Over Job Outlook: Economy
Growing concern over the outlook for hiring and wages shook U.S. consumer sentiment this month, raising the risk spending will contribute less to growth.
CNN Money | Made in America' revival gathers pace
The 'Made in America' revival is gaining momentum with a majority of manufacturing executives now ready to consider pulling some production back from China.
WSJ | Number Caught Entering U.S. Illegally Rises Again
Data add fuel to debate over beefed-up border security.
Econ Comments & Analysis
CNN Money | Why the commercial real estate crash never came
After the housing market collapsed, many economists predicted a similar fate for commercial real estate. Here's why it never happened.
RCM | Congress Writes the Recipe for Another Housing Crisis
Because of a barrage of criticism by the housing industry, the regulators recently proposed a revised definition of QRMs. Most notably, the latest proposal required no down payment by the borrower and increased the allowable debt-to-income ratio of the borrower from 36% to 43%.
Washington Times | EDITORIAL: Countdown to collision
Republicans have a week to show they mean what they say.
NBER | The Effects of Mandatory Transparency in Financial Market Design: Evidence from the Corporate Bond Market
This paper studies how mandatory transparency affects trading in the corporate bond market. In July 2002, TRACE began requiring the public dissemination of post-trade price and volume information for corporate bonds.
Mercatus Center | Bipartisan Corporate Welfare
More than a century ago, the French economist and polemicist Frederic Bastiat noted that many economic fallacies persist because the beneficiaries of government actions are easily visible while the victims are harder to identify.
Blogs
WSJ: Real Time Economics | A Look at Case-Shiller by Metro Area
The composite 20-city home price index, a key gauge of U.S. home prices, was up 12.4% in July from a year earlier.
The Economist | Beyond "mainstream economics"
“Standard economic policies,” he writes, “aim for growth, full stop. Sustainable development aims for growth that is broadly shared across the income scale and that is also environmentally sound.”
Econlib | Of Mice and Men, Morals and Markets
Good morals make for good markets is hardly a contentious claim. Reputations for honest dealing grease the wheels of commerce.
WSJ: Real Time Economics | Home Prices Rising at Fastest Pace Since Start of Bubble
Home prices rose faster during the first seven months of 2013 than any year since 2004, the year that marked the beginning of the home-price bubble.
Health Care
News
National Journal | Americans Oppose House GOP's Obamacare Strategy
United Technologies/National Journal Congressional Connection Poll finds people don't want changes to health reform tied to government funding or the debt limit.
FoxNews | One man's ObamaCare nightmare
Insurance for the Mangiones and their two boys,which they bought on the individual market, was going to almost triple in 2014 --- from $333 a month to $965.
National Journal | Americans Oppose House GOP's Obamacare Strategy
United Technologies/National Journal Congressional Connection Poll finds people don't want changes to health reform tied to government funding or the debt limit.
FoxNews | One man's ObamaCare nightmare
Insurance for the Mangiones and their two boys,which they bought on the individual market, was going to almost triple in 2014 --- from $333 a month to $965.
Monetary
News
CNN Money | Fed's Dudley: Economy still too weak to taper
The economic recovery is still not strong enough to persuade New York Fed President William Dudley that it's time to cut back on the central bank's stimulus program.
CNN Money | Big banks charged with causing credit union failures
The federal regulator that oversees credit unions has filed suits against eight of the nation's largest banks, charging they sold faulty mortgages to two credit unions that later failed.
Econ Comments & Analysis
Forbes | As We Approach The Federal Reserve's 100th Anniversary, A Reform Of The Fed Gains Currency
The Centennial Monetary Commission, HR 1176, sponsored by Joint Economic Committee Chairman Kevin Brady (R-TX), continues to pick up momentum.
AEI | Right on quantitative easing
The rising stock market shows that the Fed’s easy-money policies are working.
CNN Money | Fed's Dudley: Economy still too weak to taper
The economic recovery is still not strong enough to persuade New York Fed President William Dudley that it's time to cut back on the central bank's stimulus program.
CNN Money | Big banks charged with causing credit union failures
The federal regulator that oversees credit unions has filed suits against eight of the nation's largest banks, charging they sold faulty mortgages to two credit unions that later failed.
Econ Comments & Analysis
Forbes | As We Approach The Federal Reserve's 100th Anniversary, A Reform Of The Fed Gains Currency
The Centennial Monetary Commission, HR 1176, sponsored by Joint Economic Committee Chairman Kevin Brady (R-TX), continues to pick up momentum.
AEI | Right on quantitative easing
The rising stock market shows that the Fed’s easy-money policies are working.
Taxes
News
Bloomberg | Debt Disaster Seen Unless VAT Rises to 20% by 2020: Japan Credit
The consumption levy, due to increase in April for the first time since 1997, will need to quadruple from current levels to handle Japan’s increasing welfare costs and rein in the nation’s debt.
Econ Comments & Analysis
MarketWatch | After the Crisis, Small Banks Still Owe Taxpayers
Five years after the financial crisis, there are still a handful of smaller banks that owe the government money under the TARP program.
Bloomberg | Debt Disaster Seen Unless VAT Rises to 20% by 2020: Japan Credit
The consumption levy, due to increase in April for the first time since 1997, will need to quadruple from current levels to handle Japan’s increasing welfare costs and rein in the nation’s debt.
Econ Comments & Analysis
MarketWatch | After the Crisis, Small Banks Still Owe Taxpayers
Five years after the financial crisis, there are still a handful of smaller banks that owe the government money under the TARP program.
Employment
Blogs
The Economist | Get a life
It seems that more productive—and, consequently, better-paid—workers put in less time in at the office.
The Economist | Get a life
It seems that more productive—and, consequently, better-paid—workers put in less time in at the office.
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