News
National Journal | The Next Budget Crisis Is Only 90 Days Away
Before the ink was even dry on the plan to end the government shutdown and avoid busting the nation’s debt limit, there were growing doubts that Congress could avoid another fiscal showdown in only 90 days.
CNN Money | Shutdown took $24 billion bite out of economy
The United States may have dodged an economic catastrophe by raising the debt ceiling and opening the government, but it didn't emerge from the political debacle unscathed.
Bloomberg | Build America Bonds Biggest Loser in Yield-Rise Bet: Muni Credit
The $188 billion market for Build America Bonds is set to trail the rest of municipal debt for the first time as issuers face cuts to their federal subsidies while investors bet interest rates will rise.
Econ Comments & Analysis
Washington Times | Playing around with debt
It is hard to figure out where to start with the perennial debt-ceiling debate. Perhaps we should bite the bullet and start with Barack Obama and Harry Reid in 2006.
Washington Times | A rising torrent of debt and destruction
From April 1917 to November 1919, when President Woodrow Wilson borrowed $30 billion to pay for World War I, he was able to do so because of the promise he made to lenders that the commitment to repay them would be backed by the full faith and credit of the United States government.
Blogs
Economist | Learning to (push against the) cycle
Financial markets are currently pummelling developing countries for their poor economic management. For instance, India has been criticised for its profligate fiscal policy—which left it vulnerable to the market turmoil prompted by the threat of Fed tapering. Brazil's way out of the 2008-09 crisis was ham-fisted at best.
Thursday, October 17, 2013
Wednesday, October 16, 2013
General Economics
News
Politico | Standard and Poor's chief John Chambers: Default worse than 2008
Standard and Poor’s chief John Chambers warned Wednesday that failing to raise the debt ceiling and defaulting on the debt could be worse than the 2008 economic collapse.
Bloomberg | Cities Fixing Budgets Prove Haven Amid U.S. Impasse: Muni Credit
Municipal bonds are rallying the most in six months against federal debt, showing how bolstered local-government budgets are making city and state borrowings a haven from political turmoil over a possible U.S. default.
WSJ | Fiscal Uncertainty Chips Away at U.S. Prestige
As the world's pre-eminent economic power, the U.S. has been the cornerstone of the global financial system since World War II. Now, observers say that prestige may have been badly dented by Washington's latest display of fiscal dysfunction, limiting the U.S.'s ability to get things done abroad.
Econ Comments & Analysis
Forbes | The Obamacare Rollout Debacle Is A Hayekian 'Teaching Moment'
The necessity of re-learning fundamental truths at regular intervals should not surprise beings whose moral history begins with succumbing to the false temptation of the serpent before the Tree of Knowledge that “ye shall be as gods.” The debacle of the rollout of Obamacare is yet another moment for re-learning the fundamental truth about how little we know about what we think we can control.
NY Times | Chastening the Giant Banks
From the Gordon Gekko 1980s until the mortgage meltdown in 2007-8, the financial industry came to dominate the world economy. On this extraordinary and sometimes terrifying ride, banks reaped incredible profits while management and staff received generous salaries and lush bonuses.
Real Clear Markets | U.S. Farm Policy Amounts To $80 Billion For Rich People
Alice doesn't just live in Wonderland anymore; she seems to be everywhere. On ABC, in numerous op ed columns (along with the entire Corleone family in one case), and even hiding out in multiple DC monuments. She has also, apparently, invaded many Congressional offices.
Washington Times | Food-stamp looting
A computer-software glitch over the weekend briefly removed spending limits from certain food-stamp debit cards, setting off a run on supermarkets in several states. The incident provides a glimpse at what society looks like when it becomes dependent on the government just to eat.
Politico | America’s role in the world
President Barack Obama’s reluctance to intervene in Syria has occasioned yet another round of soul-searching on America’s role in the world. His reflective speech at the U.N. General Assembly has led commentators to wonder whether the United States remains willing to play its traditional and indispensable role in maintaining world order.
WSJ | A Carbon Reckoning
The Obama Administration's Environmental Protection Agency has spent the last few years stretching its legal authority, and now it will have to defend its actions before the Supreme Court. On Tuesday, the Justices agreed to review how far the agency can go in regulating greenhouse gases under the Clean Air Act.
Politico | Standard and Poor's chief John Chambers: Default worse than 2008
Standard and Poor’s chief John Chambers warned Wednesday that failing to raise the debt ceiling and defaulting on the debt could be worse than the 2008 economic collapse.
Bloomberg | Cities Fixing Budgets Prove Haven Amid U.S. Impasse: Muni Credit
Municipal bonds are rallying the most in six months against federal debt, showing how bolstered local-government budgets are making city and state borrowings a haven from political turmoil over a possible U.S. default.
WSJ | Fiscal Uncertainty Chips Away at U.S. Prestige
As the world's pre-eminent economic power, the U.S. has been the cornerstone of the global financial system since World War II. Now, observers say that prestige may have been badly dented by Washington's latest display of fiscal dysfunction, limiting the U.S.'s ability to get things done abroad.
Econ Comments & Analysis
Forbes | The Obamacare Rollout Debacle Is A Hayekian 'Teaching Moment'
The necessity of re-learning fundamental truths at regular intervals should not surprise beings whose moral history begins with succumbing to the false temptation of the serpent before the Tree of Knowledge that “ye shall be as gods.” The debacle of the rollout of Obamacare is yet another moment for re-learning the fundamental truth about how little we know about what we think we can control.
NY Times | Chastening the Giant Banks
From the Gordon Gekko 1980s until the mortgage meltdown in 2007-8, the financial industry came to dominate the world economy. On this extraordinary and sometimes terrifying ride, banks reaped incredible profits while management and staff received generous salaries and lush bonuses.
Real Clear Markets | U.S. Farm Policy Amounts To $80 Billion For Rich People
Alice doesn't just live in Wonderland anymore; she seems to be everywhere. On ABC, in numerous op ed columns (along with the entire Corleone family in one case), and even hiding out in multiple DC monuments. She has also, apparently, invaded many Congressional offices.
Washington Times | Food-stamp looting
A computer-software glitch over the weekend briefly removed spending limits from certain food-stamp debit cards, setting off a run on supermarkets in several states. The incident provides a glimpse at what society looks like when it becomes dependent on the government just to eat.
Politico | America’s role in the world
President Barack Obama’s reluctance to intervene in Syria has occasioned yet another round of soul-searching on America’s role in the world. His reflective speech at the U.N. General Assembly has led commentators to wonder whether the United States remains willing to play its traditional and indispensable role in maintaining world order.
WSJ | A Carbon Reckoning
The Obama Administration's Environmental Protection Agency has spent the last few years stretching its legal authority, and now it will have to defend its actions before the Supreme Court. On Tuesday, the Justices agreed to review how far the agency can go in regulating greenhouse gases under the Clean Air Act.
Health Care
News
National Journal | Relax, GOP! You've Already Wounded Obamacare
Republicans are having a bad month, but they should cheer up. Sure, conservative lawmakers have flamed out in dozens of attempts to defund, delay, repeal and pick off pieces of the Affordable Care Act, and the GOP has taken the brunt of voter outrage over the shutdown precipitated by that crusade. Yet with a big assist from its governors, the party has already done damage to Obamacare in numerous, possibly profound ways.
Econ Comments & Analysis
NBER | Bargaining in the Shadow of a Giant: Medicare's Influence on Private Payment Systems
We analyze Medicare's influence on private payments for physicians' services. Using a large administrative change in payments for surgical procedures relative to other medical services, we find that private payments follow Medicare's lead.
Heritage Foundation | How Will You Fare in the Obamacare Exchanges?
Enrollment in Obamacare’s health insurance exchanges has proven to be a somewhat difficult process amidst technical glitches and delays. Aside from the issues associated with actually purchasing health care, once an individual gets a quote for health insurance on an exchange, is the premium higher or lower than before?
Blogs
Heritage Foundation | How Much Will Obamacare Coverage Cost?
As many Americans are losing their current health plans, they may be striking out on their own into Obamacare’s health insurance exchanges. (Or at least they will be, if the website ever starts working.)
National Journal | Relax, GOP! You've Already Wounded Obamacare
Republicans are having a bad month, but they should cheer up. Sure, conservative lawmakers have flamed out in dozens of attempts to defund, delay, repeal and pick off pieces of the Affordable Care Act, and the GOP has taken the brunt of voter outrage over the shutdown precipitated by that crusade. Yet with a big assist from its governors, the party has already done damage to Obamacare in numerous, possibly profound ways.
Econ Comments & Analysis
NBER | Bargaining in the Shadow of a Giant: Medicare's Influence on Private Payment Systems
We analyze Medicare's influence on private payments for physicians' services. Using a large administrative change in payments for surgical procedures relative to other medical services, we find that private payments follow Medicare's lead.
Heritage Foundation | How Will You Fare in the Obamacare Exchanges?
Enrollment in Obamacare’s health insurance exchanges has proven to be a somewhat difficult process amidst technical glitches and delays. Aside from the issues associated with actually purchasing health care, once an individual gets a quote for health insurance on an exchange, is the premium higher or lower than before?
Blogs
Heritage Foundation | How Much Will Obamacare Coverage Cost?
As many Americans are losing their current health plans, they may be striking out on their own into Obamacare’s health insurance exchanges. (Or at least they will be, if the website ever starts working.)
Monetary
Blogs
WSJ | How Delayed Inflation Data Mess With Social Security and More
Wednesday was supposed to bring the government’s monthly report on the consumer price index. Now it’s delayed — and next month’s report could even get ditched — due to the government shutdown, throwing a wrinkle into calculations for Social Security, Treasury securities, life insurance and other legal agreements.
WSJ | How Delayed Inflation Data Mess With Social Security and More
Wednesday was supposed to bring the government’s monthly report on the consumer price index. Now it’s delayed — and next month’s report could even get ditched — due to the government shutdown, throwing a wrinkle into calculations for Social Security, Treasury securities, life insurance and other legal agreements.
Taxes
News
Politico | Talking about the medical device tax
President Barack Obama’s Affordable Care Act contains a slew of new taxes, from a tanning salon tax to levies on health insurers, drug companies and medical devices.
Politico | Talking about the medical device tax
President Barack Obama’s Affordable Care Act contains a slew of new taxes, from a tanning salon tax to levies on health insurers, drug companies and medical devices.
Budget
News
CNN Money | Debt ceiling countdown: What happens next
Thursday, October 17, is now just hours away. And Congress still has not raised the country's debt ceiling. At this point, there's a very good chance it won't make the Thursday deadline.
Bloomberg | Treasury Bill Rates Fall on Optimism on Lifting of Debt Ceiling
Rate on Treasury bills maturing in the next six weeks fell amid optimism lawmakers are working to resolve a fiscal impasse with the U.S. approaching the deadline outlined for when the nation exhausts its borrowing capacity.
CNN Money | Punting on budget likely to lead to another stalemate
It's still not clear if lawmakers will come together this week to raise the debt ceiling and fund the government.
CNBC | Relax! Government won't run out of money Thursday
All of the grave doom-and-gloom warnings aside, the federal government is unlikely to run out of money Thursday even if the latest hopes for a budget deal don't pan out.
Econ Comments & Analysis
Washington Times | What difference does it make?
Washington politicians’ egos, penchant for nepotism and disregard for taxpayers’ money knows no bounds. For weeks leading up to the country’s second government shutdown in nearly 20 years, all America talked about, and continues to, is the nation’s spending — and the nearly $17 trillion debt problem.
Fortune | Lagarde: Debt ceiling breach 'most serious thing that could happen'
A short-term debt-ceiling fix now appears to be the most likely outcome of the prolonged political mud fight that has shut down the government for the last 15 days. But even if lawmakers do manage to pass an extension, it will do little to resolve the larger questions over U.S. economic leadership, International Monetary Fund Managing Director Christine Lagarde said Tuesday.
Mercatus | How Much of the Government Is Actually Shut Down?
The shutdown has limited 17 percent of spending, amounting to $626 billion. This means 83 percent of projected 2014 spending of $3.6 trillion, amounting to $2.9 trillion, is unaffected and is continuing uninterrupted. Even if Congress is unable to agree on a spending bill, the government is still functioning, and many Americans who are dependent on various federal programs continue to receive funds.
AEI | If we hit the debt ceiling: Default is unlikely, recession is certain
Default hysteria has heated up as the federal government shutdown spills into its third week and October's debt deadline draws closer. The president, Treasury Secretary Jack Lew, and most Republicans agree that a debt default, not paying interest on federal debt, would be a calamity far worse than the Lehman crisis. PIMCO co-chief executive Mohamed El-Erian said as much earlier this month. But PIMCO’s other co-chief, Bill Gross, is buying treasuries. Why?
CNN Money | Debt ceiling countdown: What happens next
Thursday, October 17, is now just hours away. And Congress still has not raised the country's debt ceiling. At this point, there's a very good chance it won't make the Thursday deadline.
Bloomberg | Treasury Bill Rates Fall on Optimism on Lifting of Debt Ceiling
Rate on Treasury bills maturing in the next six weeks fell amid optimism lawmakers are working to resolve a fiscal impasse with the U.S. approaching the deadline outlined for when the nation exhausts its borrowing capacity.
CNN Money | Punting on budget likely to lead to another stalemate
It's still not clear if lawmakers will come together this week to raise the debt ceiling and fund the government.
CNBC | Relax! Government won't run out of money Thursday
All of the grave doom-and-gloom warnings aside, the federal government is unlikely to run out of money Thursday even if the latest hopes for a budget deal don't pan out.
Econ Comments & Analysis
Washington Times | What difference does it make?
Washington politicians’ egos, penchant for nepotism and disregard for taxpayers’ money knows no bounds. For weeks leading up to the country’s second government shutdown in nearly 20 years, all America talked about, and continues to, is the nation’s spending — and the nearly $17 trillion debt problem.
Fortune | Lagarde: Debt ceiling breach 'most serious thing that could happen'
A short-term debt-ceiling fix now appears to be the most likely outcome of the prolonged political mud fight that has shut down the government for the last 15 days. But even if lawmakers do manage to pass an extension, it will do little to resolve the larger questions over U.S. economic leadership, International Monetary Fund Managing Director Christine Lagarde said Tuesday.
Mercatus | How Much of the Government Is Actually Shut Down?
The shutdown has limited 17 percent of spending, amounting to $626 billion. This means 83 percent of projected 2014 spending of $3.6 trillion, amounting to $2.9 trillion, is unaffected and is continuing uninterrupted. Even if Congress is unable to agree on a spending bill, the government is still functioning, and many Americans who are dependent on various federal programs continue to receive funds.
AEI | If we hit the debt ceiling: Default is unlikely, recession is certain
Default hysteria has heated up as the federal government shutdown spills into its third week and October's debt deadline draws closer. The president, Treasury Secretary Jack Lew, and most Republicans agree that a debt default, not paying interest on federal debt, would be a calamity far worse than the Lehman crisis. PIMCO co-chief executive Mohamed El-Erian said as much earlier this month. But PIMCO’s other co-chief, Bill Gross, is buying treasuries. Why?
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