Month: December 2011

Budgeting Math

12/15/2011

Since the Super Committee failed $1.2 trillion in mandatory budgets cuts, starting in ’13 and running through ’21, will commence. But, the $1.2 trillion in cuts are actually only $984 billion! The law assumed that by not borrowing $984 billion,…

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Taxing License

12/14/2011

In DC there are 8,600 cabs for 600K people; plenty of cabs and a hacker license is cheap. In Chicago there are restrictions; only 6,951 cabs for a population of 3 million, and a license costs $200,000. In Boston, there…

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Shop or Drop?

12/13/2011

Consumers are spending but for how much longer? Over the past year disposable income is down, savings has fallen from 5.3% to 3.5%, household net worth has fallen by $2.4 trillion as house prices keep falling and credit card debt…

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Where are My Wages?

12/12/2011

Over the six quarters ’09Q2 through ’10Q4 corporate profits captured 88% ($464 billion) of the growth in real national income ($528 billion) while wages and salaries accounted for slightly more than 1% of the growth ($7 billion). Through ’11Q1 corporate…

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Packing it in!

12/09/2011

The Friday File: Where to invest? The S&P has been marking time for over a decade, Europe is in recession, Treasuries can only go down as yields rise, and gold looks pricey at $1,700. The answer, buy stock in the…

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Swiped Away

12/08/2011

Due to Dodd-Frank, the Fed capped fees merchants pay credit card companies (CCCs) on debit cards (DCs) to about 21 cents from about 44 cents. When the fee was 44 cents, CCCs often reduced DC fees on small transactions; less…

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Udder Nonsense

12/07/2011

Eager to take advantage of fat margins dairy farmers around the world ramped up production in response to high prices. But, those same record prices weakened consumer demand for milk (down 4%), cheese (1.5%) and butter (2.5%). Now, the increased…

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GDP for Higher

12/06/2011

During Q3 ‘11 U.S. GDP finally exceeded the real pre-recession peak of total economic output recorded in Q4 ‘07. It took 15 quarters to offset the 5.1% decline in output during the Great Recession, 3 times the average number of…

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Tunnels Going to Pot

12/05/2011

Authorities recently found 32 tons of pot after stumbling on a well built cross-border tunnel linking San Diego and Tijuana. The agents who made the discovery were surprised. I wonder why; they have found over 70 such tunnels since 10/08,…

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Unemployed and Well Slept

12/02/2011

The Friday File: What do the involuntary unemployed do with their free time? Researchers find that about 40% of their “free” time is spent working in the home which includes cooking, doing laundry, shopping, home improvement projects, caring for elder…

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