Archive for February 2012
Greek Gamble
The latest Greek bailout is shaping up as a race between a fast shrinking economy and better access to credit and lower interest payments that hopefully encourage private sector growth. The problem is absent rapid growth in exports and tourism, Greece will have a hard time paying its bills as the forced internal devaluation–lower wages–makes…
Read MoreGas Up, GDP Down
Every penny rise in gas costs the economy $1.8 billion/yr. With gas at $3.65, 40 cents more than a year ago, that’s a $72 billion tax. If prices rise another 40 cents, bringing the price within six cents of the all-time high of $4.11 in 7/08, it would trim 1% off GDP. With summer driving…
Read MoreBaby, Baby
New research shows that a 10% rise in house prices leads to a 1% decrease in births among non-homeowners, who must now save more and do so by delaying having kids. However, this negative effect is more than offset by a 4.5% increase in births among homeowners, who are now wealthier and thus have kids…
Read MoreWhat is That Worth?
The cost of noise: In NYC, a 500 sq ft studio near 70th and 2nd Ave. rents for $1,800 a month or $43/sq ft. But due to ongoing noise, dust and explosions from nearby subway work, the apartment now rents for just $1,450 a month, or a shade less than $35 a foot, a reduction…
Read More$uper Bowl
The Super Bowl was viewed by 111.3 million people and 47% of all households with TVs. While the number who watched set a record, the percentage figure was #12 all-time. The final episode of MASH which was viewed by 60% of all HH holds first spot. Either way, sponsors were happy to pay an average…
Read MoreMarriage: Losing its Appeal?
Marriage rates have been falling for decades, especially among the lower classes. It’s because lower class women tend to work but lower class men don’t. Thus, these women find no economic gain from marrying. As these trends work their way up the income ladder and middle class women increasingly outperform middle class men, these women…
Read MoreCasino Economy
Gamblers bet more in ’11 than in ’10, the first increase since ’07. Through the first 11 months of ’11 revenues were up 2.3% to $32.6 billion. NV saw a rise of 2.8% to $10.7 billion but, the #2 casino location, Atlantic City, saw its revenue fall 6.9% to $3.3 billion. PA, which now ranks…
Read MoreGoing to the Dogs
The Friday File: The most costly dog in the world, a Tibetan Mastiff, was recently sold for $1.5 million. Usually that breed (the 7th most expensive) sells for between 2K and 7K. The 3rd most expensive breed, the Samoyed, can be bought for between 4K and 11K. Number two is the Cavalier King Charles Spaniel…
Read MoreRecessionary Austerity
The deep recession in Greece and the milder one in Portugal don’t matter to the overall performance of the euro-zone, as they are less than 5% of the area. They are, proof that during a recession repeated government spending cuts and taxes increases don’t increase investor confidence nor boost growth and private sector investment. Rather,…
Read MoreHoney, Where are the Kids?
According to the Census Bureau, the number of people under 18 fell by 260,000 between 7/1/10 and 7/1/11. The last decline in the child population was in the 70s when the boomers were no longer teens but not yet adults. Before that, it was during the Depression. With the number of births currently depressed by…
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