Archive for March 2012
$3,000 for a Shot?
The Friday File: A 55 year old bottle of Glenfiddich Janet Sheed Roberts Reserve, a single-malt scotch, sold (to a whisky investor) at auction for a record $94,000. Janet Sheed Roberts is the oldest person in Scotland at 110 and is the granddaughter of the founder of the Glenfiddich Distillery. In her honor, 11 bottles…
Read MoreInterested in Debt?
US student loan debt recently hit $1 trillion as students struggle to pay soaring tuition costs. Worse, student indebtedness is growing not only due to new loans but also due to graduates who are unable to make their payments and thus see their balances rise. By contrast, total credit card debt has fallen to $800…
Read MoreSkimpy Buffet
The Buffet Rule, a tax code change designed to prevent the wealthy from paying taxes at lower marginal tax rates than the middle class, is estimated to raise $50 billion over a decade. While that’s more than I make, it’s less than 1% of the $7 trillion in deficits the government is projected to rack…
Read MoreThe Supremes
Opponents of healthcare reform (PPACA) contend it’s unconstitutional, as it forces us to buy health insurance or pay a fine. But is it? Suppose the IRS raised our taxes by the penalty amount, then gave everyone with insurance a deduction equal to the penalty? This would be functionally equivalent to the PPACA tax provisions. It’s…
Read MoreWhere’s Daddy?
While 59% of all children are born to married couples, two-thirds of all children are born to mothers under 30; among that population, over half of all births now occur outside marriage. One reason why is real earnings of men without a college degree have fallen by about 10% since ’80, while for women earnings…
Read MoreBritannica Bye Bye
The Friday File: Encyclopaedia Britannica, first published in 1768, announced it will no longer put out a print edition. In ’90, its peak year, EB sold 120,000 copies, but at $1,395 a set, sales in ’10 were just 8,000. Can you say Wikipedia? However, EB’s outstanding reputation now has it reaching 500,000 households that pay…
Read MoreNext Time it’ll Hurt More
Hard as it was, the recent Greek default was easy because Greece just stiffed private banks and hedge funds. Next time – yes, next time – it will be harder. This is because most of Greece’s debt is now held by the IMF, the ECB and many European nations who lent directly, or via the…
Read MoreMarch Madness
In ’11, March Madness earned the NCAA $548 million from TV rights and $40 million from ticket sales; 96% of all NCAA revenue. And, in 05-06 (the latest year for which data are available) the average salary for the 65 coaches in the Big Dance averaged $960,000. Yet, the schools do dismally. Again for the…
Read MoreOut of Gas
While gasoline prices have risen dramatically, and now average $3.80 a gallon, its impact has been muted. This is because natural gas prices have collapsed, falling 42% from a year ago, due to abundant supply and an unusually warm winter. I estimate that collapsing natural gas prices have mitigated two-thirds of the run-up in gasoline…
Read MoreMixed Data
Recent economic data are mixed. On one hand, the job market is doing well, bank lending is rising, and car sales are zooming. But, gasoline prices are up, real after-tax incomes are almost flat — causing consumer spending to grow a tiny inflation-adjusted 0.6% between 7/11 and 1/12 — and GDP growth is tepid. Either…
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