Month: August 2011
Euro leaders continue to deny the debt crisis they face. Rather than boosting the size of the Euro Stability Fund, which would give investors in Italian and Spanish bonds confidence, they ban short selling for a few weeks, get the…
Read MoreThe University of Michigan consumer sentiment index fell to 54.9 (the lowest level since the recession of ‘81)! This reading is, I think, a result of the corrosive debt ceiling debate; not due to chronic problems like high unemployment and…
Read MoreChinese exchange rate and monetary policy is little more than a huge a transfer of income from poor households to wealthy corporations. An undervalued Yuan makes imports expensive but helps exporters. Similarly, very low interest rates on savings accounts and…
Read MoreThe Friday File: Designers of fancy clothes believe their clothes lend an air of status and prestige to the wearer. And they do! Research shows that it is not the design itself that counts but the label! Why? Same reason…
Read MoreDeclaring the Yen’s rise to be a threat to the economy the Bank of Japan massively intervened in the foreign exchange market to drive down its value. The Swiss did the same thing and now so are the Turks! I…
Read More9 of the 12 members of the Joint Select Committee on Deficit Reduction, tasked with finding $1.2 trillion in deficit reductions over the decade, have been announced; it looks bad. Because there are 6 Ds and 6 Rs, 1 member…
Read MoreThe July jobs report showed 117K new jobs, but the report also showed no rise in temporary help, no jump in hours worked, no bump in overtime. And, annualized wage growth of 2.8% in July was less that the 3.4%…
Read MoreThe stock market has fallen by about 10% in the last two weeks, destroying about $2 trillion of wealth. If the market does not rebound quickly this will cut GDP by about $70 billion; half a percent. Here’s why. Suppose…
Read MoreFaced with a no new taxes or a debt default ultimatum from the Tea Party, Obama should have either called their bluff and appeared genuinely willing to let the US default or should have pursued the 14th amendment option with…
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