News
Politico | CEOs seek big deal to end shutdown, debt crisis
After days of watching the government closure and debt ceiling standoff from the sidelines, companies and trade associations are jumping into the fray, hoping to seize a rare moment in D.C. when a deal has to happen. And they prefer it be a big deal, with changes to entitlement programs, the tax code and spending cuts that normally would have no chance of passing.
Market Watch | Bank examiners criticize more corporate loans
A measure of the percentage of corporate loan quality that aren't strong remains elevated, according to data released by the Federal Reserve, the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency on Thursday.
Econ Comments & Analysis
The American | House Prices: Is the Fed Making the Same Mistake Again?
House price data indicate that the painful readjustment process is complete. It is time for the Fed to stop manipulating prices.
Fortune | J.P. Morgan's current woes may be the least of its problems
People tend to spend way too much time worrying about what's in the headlines and not enough time worrying about things, buried in small type, that are less obvious but lots more important. Today's case in point: J.P. Morgan Chase.
Businessweek | Americans Are Rich but Not Very Competent
The good news for Americans in a new international study of adult skills is that the U.S. ranks near the top in gross domestic product per capita, behind only Norway.
Thursday, October 10, 2013
Health Care
News
CNN Money | Some families left out in the cold by Obamacare
Obamacare is designed to make health care affordable for everyone, but several million families could get caught in a loophole in the law that leaves them out in the cold.
Econ Comments & Analysis
Washington Times | The Obamacare ‘myth’ becomes all too real
On health care, the president’s pile of broken promises keeps getting a little higher. Consider this gem from Aug. 20, 2009: “Let’s be clear about the fact that nobody has proposed anything close to a government takeover of health care.”
Politico | Train wreck: The Obamacare rollout
The rollout of Obamacare has been so disastrous that even “Daily Show” host Jon Stewart was plainly mystified and unconvinced when Sebelius came on his show the other day to offer soothing explanations and reassurances. Stewart gently expressed his frustration that there is “a level of incompetence that is larger than what it should be,” and after pressing her on why the individual mandate can’t be delayed, said after the interview was over, “I still don’t understand why individuals have to sign up but businesses don’t.”
WSJ | Medical-Device Tax Repeal Gains New Life
Medical-device makers are finally gaining traction in their three-year effort to repeal a tax on their products that helps fund the Affordable Care Act.
CNN Money | Some families left out in the cold by Obamacare
Obamacare is designed to make health care affordable for everyone, but several million families could get caught in a loophole in the law that leaves them out in the cold.
Econ Comments & Analysis
Washington Times | The Obamacare ‘myth’ becomes all too real
On health care, the president’s pile of broken promises keeps getting a little higher. Consider this gem from Aug. 20, 2009: “Let’s be clear about the fact that nobody has proposed anything close to a government takeover of health care.”
Politico | Train wreck: The Obamacare rollout
The rollout of Obamacare has been so disastrous that even “Daily Show” host Jon Stewart was plainly mystified and unconvinced when Sebelius came on his show the other day to offer soothing explanations and reassurances. Stewart gently expressed his frustration that there is “a level of incompetence that is larger than what it should be,” and after pressing her on why the individual mandate can’t be delayed, said after the interview was over, “I still don’t understand why individuals have to sign up but businesses don’t.”
WSJ | Medical-Device Tax Repeal Gains New Life
Medical-device makers are finally gaining traction in their three-year effort to repeal a tax on their products that helps fund the Affordable Care Act.
Monetary
News
Fortune | 5 things you didn't know about Janet Yellen
President Obama on Wednesday tapped Janet Yellen to succeed Ben Bernanke as the next chairman of the Federal Reserve. By now, many Americans know Yellen could go down in history as the first woman to lead the Fed, as well as the first Democrat to head the central bank in almost 30 years.
Econ Comments & Analysis
Forbes | Rising Wealth Inequality Is Bad, But Liberal 'Solutions' Are Much Worse
Is rising inequality of income and wealth a bad thing? Yes, in the sense that the monetary chaos that is causing it is a bad thing. Everyone, including “the one percent,” would be better off today if America had had stable money for the past 45 years*.
Blogs
Economist | A new hand on the tiller
Janet Yellen's nomination to chair the Federal Reserve is ground breaking, and not just because she will be the first woman in the job. She would also be the first known dove to hold the position.
Library of Economics | Hummel on Fed's Lack of Control of Interest Rates
There is no denying that central banks have some impact on interest rates, in both the short and the long run. But the complexity of and qualifications to that impact have been swept into a memory hole, submerging a host of additional questions.
Economist | Burying the economy to save it
It is fair to note that low interest rates, particularly low long-term interest rates, can encourage financial behaviour that might in some circumstances increase vulnerability to crisis. But long-term interest rates are determined by many different factors, including the outlook for real growth and inflation expectations.
Fortune | 5 things you didn't know about Janet Yellen
President Obama on Wednesday tapped Janet Yellen to succeed Ben Bernanke as the next chairman of the Federal Reserve. By now, many Americans know Yellen could go down in history as the first woman to lead the Fed, as well as the first Democrat to head the central bank in almost 30 years.
Econ Comments & Analysis
Forbes | Rising Wealth Inequality Is Bad, But Liberal 'Solutions' Are Much Worse
Is rising inequality of income and wealth a bad thing? Yes, in the sense that the monetary chaos that is causing it is a bad thing. Everyone, including “the one percent,” would be better off today if America had had stable money for the past 45 years*.
Blogs
Economist | A new hand on the tiller
Janet Yellen's nomination to chair the Federal Reserve is ground breaking, and not just because she will be the first woman in the job. She would also be the first known dove to hold the position.
Library of Economics | Hummel on Fed's Lack of Control of Interest Rates
There is no denying that central banks have some impact on interest rates, in both the short and the long run. But the complexity of and qualifications to that impact have been swept into a memory hole, submerging a host of additional questions.
Economist | Burying the economy to save it
It is fair to note that low interest rates, particularly low long-term interest rates, can encourage financial behaviour that might in some circumstances increase vulnerability to crisis. But long-term interest rates are determined by many different factors, including the outlook for real growth and inflation expectations.
Taxes
Blogs
Fortune | The government shutdown and our antiquated tax code
This shutdown should serve as a wake-up call to both the IRS and the government that we need to adjust how we tax workers -- and fast.
Fortune | The government shutdown and our antiquated tax code
This shutdown should serve as a wake-up call to both the IRS and the government that we need to adjust how we tax workers -- and fast.
Employment
News
FOX Business | Teva Pharmaceutical to Fire 5,000 Workers in Cost-Cutting Move
To save as much as $2 billion a year, Teva Pharmaceutical (TEVA) said Thursday it was expanding its cost-cutting program by axing 10% of its workforce, or about 5,000 people.
Bloomberg | Federal Contractors Stuck in Bottleneck by U.S. Shutdown
The U.S. government shutdown has created a bottleneck in contracting that may hurt companies long after federal offices open and the debt-ceiling dispute is resolved.
FOX Business | Teva Pharmaceutical to Fire 5,000 Workers in Cost-Cutting Move
To save as much as $2 billion a year, Teva Pharmaceutical (TEVA) said Thursday it was expanding its cost-cutting program by axing 10% of its workforce, or about 5,000 people.
Bloomberg | Federal Contractors Stuck in Bottleneck by U.S. Shutdown
The U.S. government shutdown has created a bottleneck in contracting that may hurt companies long after federal offices open and the debt-ceiling dispute is resolved.
Budget
News
National Journal | There Is Only One Debt-Ceiling Outcome That Could Save the Economy
Senate Majority Leader Harry Reid has a plan to get us out of the debt-ceiling crisis. He introduced a bill Tuesday night that would lift the limit until Dec. 31, 2014. If that passes, a global economic meltdown would be averted.
Bloomberg | Lew Says Debt-Limit Stalemate Threatens Markets, Retirees
Treasury Secretary Jacob J. Lew warned that the congressional deadlock over the U.S. debt ceiling is “beginning to stress the financial markets,” and failing to raise it by Oct. 17 could put Social Security and Medicare payments at risk.
Econ Comments & Analysis
WSJ | A Federal Default Invites Catastrophe
I have always been amazed that anyone would choose to play Russian roulette. Who could ever be so bored, so irresponsible, or have such low future aspirations that they would flirt willfully with death while having nothing to gain?
Washington Times | How extreme overspending became the new norm
Only the high deficit spending of the past four years makes today’s seem sustainable. As much as some would like to claim spending- and deficit-reduction success, both remain beyond the parameters of recent profligacy. What’s more, the recent deficit reduction has not been a result of declining spending as much as it has been a result of increasing revenues.
WSJ | The Bigger Battle Behind the Shutdown
At its core, the shutdown is part of a much bigger battle to restrain the federal government. It is spending $3.6 trillion per year without a budget, and its expenditures are expected to increase rapidly in the years ahead.
Real Clear Markets | With the Debt Ceiling, Government's the Same as You and Me
If Congress does not raise the debt ceiling, the result will be no different than the Jones family deciding that they have maxed out their credit cards; and that if they continue borrowing and spending over their means, there will be significant pain to the family at best and bankruptcy at worst.
Mercatus | The Debt-Limit Debate 2013: Addressing Key Myths
As federal government borrowing is set to exceed yet another debt limit, most are quick to recall—and wish to avoid a repeat of—the 2011 debt-limit showdown. If current rhetoric is any indication, it appears many of the last debate’s lessons have been forgotten. Regrettably, it seems many of the debate’s facts have been forgotten as well.
Blogs
WSJ | Vital Signs: City Budgets on the Mend
The National League of Cities reports that 72% of city finance officers say their cities are better able to meet fiscal needs this year than in 2012. Back in 2009, only 12% of finance officers thought that. The positive response rate is the highest percentage since 2000.
Heritage Foundation | Moody’s on Debt Limit: Calling Obama’s Bluff on Default
A voice of reason emerged today among the doomsday predictions over a U.S. government default if the debt limit is not raised by mid-October. The Washington Post reports that Moody’s, a top credit rating service, suggested that hitting the debt limit does not mean the U.S. would default
National Journal | There Is Only One Debt-Ceiling Outcome That Could Save the Economy
Senate Majority Leader Harry Reid has a plan to get us out of the debt-ceiling crisis. He introduced a bill Tuesday night that would lift the limit until Dec. 31, 2014. If that passes, a global economic meltdown would be averted.
Bloomberg | Lew Says Debt-Limit Stalemate Threatens Markets, Retirees
Treasury Secretary Jacob J. Lew warned that the congressional deadlock over the U.S. debt ceiling is “beginning to stress the financial markets,” and failing to raise it by Oct. 17 could put Social Security and Medicare payments at risk.
Econ Comments & Analysis
WSJ | A Federal Default Invites Catastrophe
I have always been amazed that anyone would choose to play Russian roulette. Who could ever be so bored, so irresponsible, or have such low future aspirations that they would flirt willfully with death while having nothing to gain?
Washington Times | How extreme overspending became the new norm
Only the high deficit spending of the past four years makes today’s seem sustainable. As much as some would like to claim spending- and deficit-reduction success, both remain beyond the parameters of recent profligacy. What’s more, the recent deficit reduction has not been a result of declining spending as much as it has been a result of increasing revenues.
WSJ | The Bigger Battle Behind the Shutdown
At its core, the shutdown is part of a much bigger battle to restrain the federal government. It is spending $3.6 trillion per year without a budget, and its expenditures are expected to increase rapidly in the years ahead.
Real Clear Markets | With the Debt Ceiling, Government's the Same as You and Me
If Congress does not raise the debt ceiling, the result will be no different than the Jones family deciding that they have maxed out their credit cards; and that if they continue borrowing and spending over their means, there will be significant pain to the family at best and bankruptcy at worst.
Mercatus | The Debt-Limit Debate 2013: Addressing Key Myths
As federal government borrowing is set to exceed yet another debt limit, most are quick to recall—and wish to avoid a repeat of—the 2011 debt-limit showdown. If current rhetoric is any indication, it appears many of the last debate’s lessons have been forgotten. Regrettably, it seems many of the debate’s facts have been forgotten as well.
Blogs
WSJ | Vital Signs: City Budgets on the Mend
The National League of Cities reports that 72% of city finance officers say their cities are better able to meet fiscal needs this year than in 2012. Back in 2009, only 12% of finance officers thought that. The positive response rate is the highest percentage since 2000.
Heritage Foundation | Moody’s on Debt Limit: Calling Obama’s Bluff on Default
A voice of reason emerged today among the doomsday predictions over a U.S. government default if the debt limit is not raised by mid-October. The Washington Post reports that Moody’s, a top credit rating service, suggested that hitting the debt limit does not mean the U.S. would default
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