News
Bloomberg | Consumers’ Outlooks on U.S. Economy Improve to Five-Month High
Consumers’ economic outlook improved in May to its best reading in five months, showing Americans are looking beyond the current slowdown to a rebound in growth later this year.
FOX Business | Lacker: Time for Fed to Get Out of Mortgage Market
An improving U.S. housing market suggests it is time for the Federal Reserve to stop aiming its stimulus at the real estate sector, Richmond Fed President Jeffrey Lacker said on Wednesday.
CNN Money | Apartment construction slows sharply
A sharp pullback in apartment and condominium construction led to a big decline in overall home building in April, even as single-family home construction remained strong, according to government data released Thursday.
Bloomberg | Wal-Mart Second-Quarter Forecast Trails Estimates
Wal-Mart Stores Inc (WMT)., the world’s largest retailer, forecast second-quarter profit that was less than analysts estimated as consumers struggle amid the slow U.S. economy and higher taxes.
WSJ | Euro Zone Runs Record Trade Surplus
The trade surplus for the 17 nations that use the euro hit its highest level in March since records began in 1999, driven by a sharp rise in exports and a decline in imports.
Econ Comments & Analysis
Real Clear Energy | North Dakota Proves Obama Doesn't Get Energy
The Bakken and Three Forks formations in North Dakota, South Dakota and Montana contain significantly more oil-and-gas resources than previously thought, according to a new U.S. Geological Survey (USGS) reassessment. The survey found an estimated 7.4 billion barrels of undiscovered, technically recoverable shale oil (resources that can be recovered with current technology but whose precise location is unknown), double its 2008 assessment. The reassessment also found three times as much recoverable natural gas than previously believed to exist.
WSJ | Europe's Sinking Feeling
The latest growth figures for the euro zone are in, and pretty they are not. Italy's economy shrank for the seventh quarter in a row. France reported its second consecutive quarter of contraction, pushing it into recession. The currency bloc as a whole shrank for the sixth straight quarter.
Forbes | Don't Cry For Me, America: Comparing Argentina And The United States
Many observers have pondered if the United States is following the same troubled path as Argentina. In the 1940s, Argentina’s Juan Domingo Perón used government agencies for political gain and created a popular form of fascism called Perónism. In the United States, the recent revelation of the Internal Revenue Service targeting political enemies is a bad omen. Are we on an Argentinean course?
Washington Post | The rich can save Social Security, by giving up their checks
In the aftermath of 9/11, many young, strong Americans enlisted, willingly agreeing to sacrifice their lives if necessary to protect our country’s interests. Today’s wealthiest Americans have the same opportunity to put their country’s interests before their own. Politicians should not shy away from asking them to put forth not their lives but what are, for them, their modest Social Security checks.
Blogs
Economist | What the euro has meant
According to Eurostat's first estimate, output in the euro area shrank 0.2% from the fourth quarter of 2012 to the first of 2013 and fell 1% year-on-year. The euro zone has been in recession since the third quarter of 2011.
WSJ | Sorry, World, U.S. Consumers Can’t Save You
To the consternation of U.S. manufacturers and probably Federal Reserve officials, American consumers are being asked — once again — to be Shoppers to the World.
Thursday, May 16, 2013
Health Care
News
Politico | Obamacare repeal central for GOP primary field
Republicans know their repeal votes on Obamacare are symbolic — but repeal remains a potent GOP message on the campaign trail for the 2014 midterm elections.
Econ Comments & Analysis
CRS | Appropriations and Fund Transfers in the Patient Protection and Affordable Care Act (ACA)
Among its many provisions, the Patient Protection and Affordable Care Act (ACA) restructures the private health insurance market, sets minimum standards for health coverage, and, beginning in 2014, mandates that most U.S. residents obtain health insurance coverage or pay a penalty.
Politico | Obamacare repeal central for GOP primary field
Republicans know their repeal votes on Obamacare are symbolic — but repeal remains a potent GOP message on the campaign trail for the 2014 midterm elections.
Econ Comments & Analysis
CRS | Appropriations and Fund Transfers in the Patient Protection and Affordable Care Act (ACA)
Among its many provisions, the Patient Protection and Affordable Care Act (ACA) restructures the private health insurance market, sets minimum standards for health coverage, and, beginning in 2014, mandates that most U.S. residents obtain health insurance coverage or pay a penalty.
Monetary
News
FOX Business | Inflation Falls in April as Energy Prices Plunge
A sharp drop in gasoline costs led U.S. consumer prices to tumble in April by the most in over four years, while a gauge of underlying inflation was so weak it could worry the U.S. Federal Reserve.
Econ Comments & Analysis
WSJ | How to Let Too-Big-To-Fail Banks Fail
It is now almost three years since the Dodd-Frank Act was enacted to prevent the possibility that taxpayers would have to bail out "too-big-to-fail" banks. Yet there is serious concern that the legislation has not solved the problem. Many have called for new laws to limit the activities of very large banks or even, as in the bill recently introduced by Sens. Sherrod Brown and David Vitter, to cause them to break up. On Wednesday, the House Financial Services Oversight and Investigations Subcommittee held hearings on the continuing bailout issue, at which one of us (John Taylor) testified.
Bloomberg | The Question the Fed Should Be Asking
Ed Koch, the late mayor of New York City, used to stop residents on the street and ask, “How am I doing?”
FOX Business | Inflation Falls in April as Energy Prices Plunge
A sharp drop in gasoline costs led U.S. consumer prices to tumble in April by the most in over four years, while a gauge of underlying inflation was so weak it could worry the U.S. Federal Reserve.
Econ Comments & Analysis
WSJ | How to Let Too-Big-To-Fail Banks Fail
It is now almost three years since the Dodd-Frank Act was enacted to prevent the possibility that taxpayers would have to bail out "too-big-to-fail" banks. Yet there is serious concern that the legislation has not solved the problem. Many have called for new laws to limit the activities of very large banks or even, as in the bill recently introduced by Sens. Sherrod Brown and David Vitter, to cause them to break up. On Wednesday, the House Financial Services Oversight and Investigations Subcommittee held hearings on the continuing bailout issue, at which one of us (John Taylor) testified.
Bloomberg | The Question the Fed Should Be Asking
Ed Koch, the late mayor of New York City, used to stop residents on the street and ask, “How am I doing?”
Taxes
News
Politico | Roger Wicker: ‘Cold water’ hits tax reform
Mississippi GOP Sen. Roger Wicker, one of the targets of the White House’s charm offensive, said the trio of controversies dominating conversation in Washington this week could hurt efforts to reach bipartisan deals on the budget and tax reform.
Washington Times | Obama pushes out IRS chief, pledges to fix tax agency; move unlikely to end scandal
President Obama forced acting IRS Commissioner Steven Miller to resign Wednesday and said he will cooperate fully as he and Congress try to clean up the tax agency after it admitted targeting conservative groups for extra scrutiny during last year’s campaign season.
Econ Comments & Analysis
Washington Times | An opportunity to abolish the IRS
The news that the Internal Revenue Service (IRS) has targeted Tea Party and conservative groups has come as a huge shock to Republicans. “How could this happen,” Republican lawmakers have wailed. Democrats, however, are only upset that Tea Party groups fought back and that the IRS‘ actions were exposed.
CATO | IRS’s Soaring Budget and Refundable Tax Credits
Chris Edwards showed that the Internal Revenue Service’s budget has been soaring and the main culprit is refundable tax credits. The magnitude of refundable tax cuts is obfuscated in the IRS’s budget because only the refunded portion of the credit shows up as an outlay —the rest is recorded as a reduction in revenues.
Politico | Roger Wicker: ‘Cold water’ hits tax reform
Mississippi GOP Sen. Roger Wicker, one of the targets of the White House’s charm offensive, said the trio of controversies dominating conversation in Washington this week could hurt efforts to reach bipartisan deals on the budget and tax reform.
Washington Times | Obama pushes out IRS chief, pledges to fix tax agency; move unlikely to end scandal
President Obama forced acting IRS Commissioner Steven Miller to resign Wednesday and said he will cooperate fully as he and Congress try to clean up the tax agency after it admitted targeting conservative groups for extra scrutiny during last year’s campaign season.
Econ Comments & Analysis
Washington Times | An opportunity to abolish the IRS
The news that the Internal Revenue Service (IRS) has targeted Tea Party and conservative groups has come as a huge shock to Republicans. “How could this happen,” Republican lawmakers have wailed. Democrats, however, are only upset that Tea Party groups fought back and that the IRS‘ actions were exposed.
CATO | IRS’s Soaring Budget and Refundable Tax Credits
Chris Edwards showed that the Internal Revenue Service’s budget has been soaring and the main culprit is refundable tax credits. The magnitude of refundable tax cuts is obfuscated in the IRS’s budget because only the refunded portion of the credit shows up as an outlay —the rest is recorded as a reduction in revenues.
Employment
News
Bloomberg | Jobless Claims in U.S. Jump to Highest Level in Six Weeks
More Americans than projected filed applications for unemployment benefits last week, which may raise concern the slowdown in economic growth is prompting an increase in firings.
CNBC | Longer Benefits Keep People Jobless? Maybe Not
Despite arguments to the contrary, giving unemployed Americans extended jobless benefits of up to 99 weeks didn't prevent them from taking jobs, according a new report.
Bloomberg | Jobless Claims in U.S. Jump to Highest Level in Six Weeks
More Americans than projected filed applications for unemployment benefits last week, which may raise concern the slowdown in economic growth is prompting an increase in firings.
CNBC | Longer Benefits Keep People Jobless? Maybe Not
Despite arguments to the contrary, giving unemployed Americans extended jobless benefits of up to 99 weeks didn't prevent them from taking jobs, according a new report.
Budget
News
Market Watch | U.S. more austere than U.K., Europe: Rosengren
The cuts in government spending in the U.S. have been larger in percentage terms than in the U.K. or the euro area, where fiscal austerity has received more attention, Boston Fed President Eric Rosengren told an audience in Milan.
Econ Comments & Analysis
CRS | Reaching the Debt Limit: Background and Potential Effects on Government Operations
Treasury has yet to face a situation in which it was unable to pay its obligations as a result of reaching the debt limit. In the past, the debt limit has always been raised before the debt reached the limit.
Blogs
Economist | The need for a targeted lending scheme in the euro area
The Free Exchange column makes a strong case in support of view that there is something wrong with provision of credit to small and medium enterprises (SMEs) in the euro area. I agree. However I would go further than suggesting that lending support targeted at the SME sector, as the UK’s funding for lending scheme (FLS) does, is something the ECB could consider; I believe such targeted lending is something that the ECB must adopt, and sooner rather than later.
Market Watch | U.S. more austere than U.K., Europe: Rosengren
The cuts in government spending in the U.S. have been larger in percentage terms than in the U.K. or the euro area, where fiscal austerity has received more attention, Boston Fed President Eric Rosengren told an audience in Milan.
Econ Comments & Analysis
CRS | Reaching the Debt Limit: Background and Potential Effects on Government Operations
Treasury has yet to face a situation in which it was unable to pay its obligations as a result of reaching the debt limit. In the past, the debt limit has always been raised before the debt reached the limit.
Blogs
Economist | The need for a targeted lending scheme in the euro area
The Free Exchange column makes a strong case in support of view that there is something wrong with provision of credit to small and medium enterprises (SMEs) in the euro area. I agree. However I would go further than suggesting that lending support targeted at the SME sector, as the UK’s funding for lending scheme (FLS) does, is something the ECB could consider; I believe such targeted lending is something that the ECB must adopt, and sooner rather than later.
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