Tuesday, July 22, 2014

General Economics

CNN Money | Detroit retirees back pension cuts
On Monday, court documents showed thousands of employees and retirees had voted in favor of cuts to their pension benefits, raising the chances that the city will be able to emerge from bankruptcy later this year.
Market Watch | U.S. home prices rise 0.4% in May, FHFA says
The FHFA house price index is based on mortgages bought or guaranteed by Fannie Mae and Freddie Mac. Compared to May 2013, prices were up 5.5%, led by 9.6% growth in the Pacific region. Prices are 6.5% below the April 2007 peak, FHFA added.

Econ Comments & Analysis                                                                                            
WSJ | Heading Off the Entitlement Meltdown
This year's budget deficit of "only" $500 billion has brought some complacency on federal spending and deficits. It shouldn't. The Congressional Budget Office's long-term budget outlook released on July 15 shows a $40 trillion increase in debt over the next two decades.
Washington Times | Government corruption on the rampage
The Obama administration is arguably the most corrupt administration in U.S. history. Corruption destroys civil society and economic growth by undermining the rule of law and protection of private property. Corruption takes many forms, from the simple payment to a government official for a favor, to the failure of government employees to do what they are paid to do, to gross abuse of power.
WSJ | The Benefits of Failure
Four years ago, Democrats enacted the Dodd-Frank law on the theory that some banks are too big to fail and that regulators have the wisdom to identify which ones. Today the company that disproved that theory is back in the news.
Mercatus | Regulation by Stealth: Time to Re-Examine Federal Agencies
In recent weeks, President Barack Obama announced plans to use executive authority to implement immigration reforms in absence of cooperation from Congress. House Speaker John A. Boehner also announced plans to initiate a lawsuit designed to check the president's power to take unilateral executive actions. Given this tension, it's a good time to consider how exactly the executive branch is able to implement policy without congressional consent.
AEI | In year four of Dodd-Frank, over-regulation is getting old
The Dodd-Frank Act was signed into law four years ago today, mandating sweeping changes in the way U.S. banks and financial markets are regulated. As implementation continues, it is increasingly clear that Dodd-Frank's unbalanced mix of new regulatory powers and vague goals are causing over-regulation and reducing economic growth.