News
Bloomberg | Fourth-Quarter U.S. GDP Forecasts Lowered on Shutdown
The U.S. economy will probably expand at a 2 percent annualized rate in the final three months of the year, less than economists projected at the start of the budget impasse that resulted in a 16-day government shutdown.
CNN Money | Next year's 401(k) contribution limit: still $17,500
The IRS said there wasn't a big enough increase in the Consumer Price Index, which measures inflation, to lead the agency to raise the contribution cap for 401(k)s, 403(b)s, most 457 plans and the federal government's Thrift Savings Plan for 2014.
Market Watch | Final U.S. Markit PMI for October rises to 51.8
The final reading of Markit's U.S. manufacturing purchasing managers index increased to 51.8 in October from an initial "flash" reading of 51.1. It remains below 52.8 in September.
Bloomberg | Homebuilders to Rally as Bet on Taper Premature: EcoPulse
Shares of U.S. homebuilding companies have fallen more than 20 percent since May, even as home-improvement retailers rose to a record high, a sign some investors are too pessimistic that higher mortgage rates could derail new construction.
Econ Comments & Analysis
Forbes | After The Government Shutdown Dust Settles, 3 Predictions For 2014
You don’t need Karl Rove’s white board to know which way the wind’s blowing. There is a profound shift happening in the way politics are done in America, and a civil war has erupted within the Republican Party as a result. It’s chaotic, and the attacks from the Republican establishment are getting uglier. The beltway milieu doesn’t take kindly to people who don’t abide by “the old way of doing things.”
Bloomberg | IMF Backs U.S. Treasury in Criticizing German Exports
The International Monetary Fund joined the U.S. Treasury Department in rebuking Germany’s trade surpluses, rebuffing the claim of Chancellor Angela Merkel’s government that booming exports are a sign of economic health.
Politico | Don’t throw the tea party overboard
In the wake of the government shutdown and near default, a Beltway consensus has emerged: The GOP lost, the tea party movement is to blame and, therefore, the former must abandon the latter or risk being consigned to permanent minority status.
Market Watch | Goodbye, $100 oil. Hello, $3 gasoline!
Crude-oil stockpiles in the U.S. are heading toward a record, pushing off a return to $100-a-barrel oil, and giving drivers a shot at $3-a-gallon gasoline.
Blogs
Economist | Smith's word
Adam Smith is known as the father of economics. Most people think of him as the archetypal free-marketeer. But Smith is often misquoted. This post will give a few examples of how people have misinterpreted Smith’s ideas—and show what he really meant.
NY Times | The Perils of a Free Trade Pact With Europe
Currently slightly beneath most people’s radar, but coming soon to the fore is a potential free trade agreement with Europe. Negotiations started in October and, after a delay because of the government shutdown, may now pick up speed. Some parts of this potential agreement make sense, but there is also an important trap to be avoided: European requests on financial services.
