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Thursday, August 8, 2013

General Economics

News                                                                                                                             
Bloomberg | Consumer Comfort in U.S. Climbs to More Than Five-Year High
Consumer confidence advanced last week to the highest level in more than five years as Americans’ views on the economy, personal finances and spending improved.
CNN Money | Bank of America hit with government lawsuits over mortgages
The Department of Justice announced a civil lawsuit on Tuesday alleging that Bank of America defrauded buyers of mortgage-backed securities by lying about the quality of the home loans involved. The Securities and Exchange Commission also announced a parallel case.
Bloomberg | Home Prices Rise in 87% of U.S. Cities Amid Recovery
Prices for single-family homes climbed in 87 percent of U.S. cities in the second quarter as the national housing recovery accelerated amid competition for a limited number of properties on the market.
CNBC | US consumer credit increased by $13.8 billion in June, less than expected
U.S. consumer credit rose less than expected in June, held back by the largest decline in credit card use in a year as households continue to pay down debts.

Econ Comments & Analysis                                                                                            
Washington Times | Obama’s next housing boom and bust
It would be funny if it weren’t so serious. The president has proposed to eliminate Fannie Mae and Freddie Mac, while at the same time proposing to put in place the same policies that caused the two government-sponsored enterprises to fail.
Fortune | What the end of Freddie and Fannie could cost borrowers
There are plenty of unanswered questions around the potential unwinding of Fannie Mae and Freddie Mac, but one thing is certain: It will cost homebuyers more to get a mortgage.
Bloomberg | A User’s Guide to Obama’s Inside-Out Economics
The president may be out of ideas, but he is never out of words. He has been sharing voluminous amounts of them with audiences over the last two weeks on his latest speaking tour, or pivot, on the economy.

Blogs                                                                                                                             
Economist | Time as money
How much we spend depends on how old we are. Generally, people increase their day-to-day expenditure until middle age, but spending drops thereafter. Economists call this the “hump” in life-cycle spending. But it is difficult to determine exactly what drives the fall in spending as people age
WSJ | Vital Signs Chart: Consumers Boost Borrowing for Cars, Education
Consumers continued to step up borrowing in June, namely for education and cars. Nonrevolving credit outstanding — including auto finance and student loans — rose $16.5 billion, a 10% annual rate, to a seasonally adjusted $1.99 trillion.

Health Care

News                                                                                                                             
Politico | Feds clarify Hill health coverage under Obamacare
The Obama administration on Wednesday issued a proposed rule allowing the government to continue to pay for a significant portion of health insurance for lawmakers and Hill staffers.

Econ Comments & Analysis                                                                                            
Real Clear Markets | Has Obamacare Really Slowed Growth?
In today's contentious political climate, when hardly anyone agrees on anything, here's a rare subject of consensus: Health spending is slowing, and almost everyone thinks that's a good thing. Aside from relieving pressures on federal and state budgets, it could help reverse stagnant wages by moderating the cost of employer-paid insurance. Compensation would shift from insurance to wages.
CATO | Repealing Obamacare: Not a Waste of Time
Speaking at a campaign-style rally last month at an Amazon plant in Chattanooga, Tenn., President Obama ridiculed Republicans’ economic agenda, claiming that “wasting the country’s time by taking something like 40 meaningless votes to repeal Obamacare is not a jobs plan.”

Blogs                                                                                                                             
Heritage Foundation | What Everybody Ought to Know About Obamacare
So it’s no surprise that Organizing for Action, President Obama’s campaign group, is aggressively posting on all of its media outlets to try to hide the truth about Obamacare.

Monetary

News                                                                                                                             
Bloomberg | Fed Belongs to Everybody as Public Says It’s Our Money in Crisis
The unprecedented frenzy surrounding Federal Reserve Chairman Ben S. Bernanke’s potential successor shows that Americans won’t let the central bank go back to its opaque and secretive ways.
WSJ | Fed’s Pianalto: Ready to Scale Back QE if Labor Market Stays on Current Path
The president of the Cleveland Federal Reserve Bank said Wednesday she would be ready to scale back the central bank’s $85 billion-per-month bond-buying program if the labor market continues to improve as it has over the past year.

Econ Comments & Analysis                                                                                            
Investors | Obama Ignores Pernicious Effect Of Fed Policies
When President Obama gave his recent address at Knox College, he lamented the dismal state of middle-income families, whose real incomes have been stagnant or falling. He promised new policies that would restore upward mobility and improve prospects for growth and employment.
NBER | State-controlled Banks and the Effectiveness of Monetary Policy
We find lending by state controlled banks to be significantly more associated with monetary policy than is lending by private sector banks.

Taxes

News                                                                                                                             
CNN Money | North Carolina's Republican tax experiment
Tax reform is still all talk, talk, talk in Washington. And many expect real action could take years.

Employment

News                                                                                                                             
CNN Money | Greek jobs crisis deepens
Stuck in recession for a sixth consecutive year, Greece reported a jobless rate of 27.6% in May, a new record high. The unemployment rate stood at 27% in April.
Bloomberg | Jobless Claims in U.S. Fall Over Month to Lowest Since 2007
The fewest workers applied for U.S. unemployment benefits over the past month since before the last recession, indicating the labor market is making progress.

Econ Comments & Analysis                                                                                            
WSJ | Robots, 3-D Printers and Other Looming Innovations
Is technology to blame for our stubborn unemployment? President Obama scored ATMs and airport kiosks in a 2011 "Today Show" interview, blaming them for "structural issues with our economy." Other technophobes have piled on.
FOX Business | Why We Can't Blame the Housing Market for High Unemployment
Imagine that your home is now worth $40,000 less than what you paid for it just two years ago. In fact, the value is now less than what you owe on your mortgage, a condition referred to as being “underwater.”

Budget

News                                                                                                                             
National Journal | McCain May Be Our Only Hope for Forging Fiscal Deal
With Congress away for the next month, it gives us time to pause and consider the various train wrecks that lie ahead when the members return Sept. 9—and we are talking train wrecks of the deadly variety. Three weeks after Congress returns, the new fiscal year will start; most of government as we know it will shut down unless both chambers can agree on a continuing resolution to keep government funded until they can finish their appropriations work and/or settle their differences over spending priorities.
Bloomberg | Biggest Michigan County Suffering Detroit Contagion: Muni Credit
Wayne County, home of Detroit, has seen the extra yield investors demand to own its debt soar to a record, showing the price Michigan localities are paying after the Motor City filed for bankruptcy.
Bloomberg | Deficit Shrinks to 5.7% of GDP as Debt Ceiling No Vote Risks All
As congressional Republicans prepare to risk a government shutdown or U.S. debt default over the budget, one economic indicator undercuts the urgency for a showdown: The deficit is steadily shrinking.