Month: November 2011

The Five Little PIIGS

11/30/2011

In October ’08 European banks looked pretty healthy; they held few toxic US mortgage backed securities. But, this strength was a fiction. European banks met their Waterloo in large holdings of euro-denominated sovereign debt of the PIIGS (Portugal, Ireland, Italy,…

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This Old House

11/29/2011

When parties lose majority status in Congress and when a return to majority status looks tough, retirement announcements become common. When the Ds lost their majority in the House in ’94 29 announced they would not run in ’96. When…

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Government Closure as a Tactic

11/28/2011

The 20 day State of MN government shutdown this July cost MN $60 million in lost revenue but saved about $65 million n salaries not paid, according the MN Management and Budget Department. Of course, the report failed to look…

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Happy Thanksgiving

11/23/2011

The annual US turkey crop of 248 million birds (7.1 billion pounds, or 23 pounds/person) is worth $4.4 billion. MN produces the most birds followed by NC, AR, and MI. The US produces about 750 million pounds (2.5 pounds/person) of…

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Bad Economy, Fewer Babies

11/22/2011

US birth rates fell for the 3rd straight year in ‘10 according to the CDC. Teen births saw the biggest decline, 9%, to 43.3 births/1,000 females, the lowest rate ever. And, for the 1st time in a decade cesarean section…

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Sneaky Securities Scam

11/21/2011

Mutual funds (MFs) must get 90% of their income from stocks, bonds and traditional securities. To bypass this, MFs that invest in derivatives and commodities set up shell corps in the Caymans to do it. They then sell shares in…

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Taller is Richer

11/18/2011

The Friday File: Tall men make more money than short men, about $1,000/ year for each inch they are above average. 3 smart economists (are there any other kind?) from the Univ. of PA explain why. They find that men…

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Birmingham Bankruptcy

11/17/2011

The biggest civic bankruptcy in America is official with Jefferson County, AL (Birmingham, AL) filing for Chapter 9 last week. Harrisburg, PA had held this dubious honor. The full impact of the filing will not be known until a judge…

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Stupor Committee

11/16/2011

With barely a week before the deficit reduction panel must make its recommendations to Congress, and with little hope of success, bank on the goalposts being moved! If the Panel totally fails, expect Congress to pass a law canceling the…

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Tax Cut Stimulus

11/15/2011

If Congress does not extend the temporary Social Security payroll tax cut on employees of 2% (from 6.2% to 4.2% on the first $106,800 of income) beyond the end of ’11, that would cut about $120 billion off GDP. And,…

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