Month: September 2012

Cutting it Close

09/14/2012

The Friday File: For men using a razor, the average shave takes 2.5 minutes and 200 strokes. 55% of men find shaving the neck the most difficult, followed by the chin (26%), the mustache (17%) and the cheeks (3%). Global…

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An Apple a Day

09/13/2012

Analysts expect iPhone 5 sales to reach 30 million by 12/31/12. At $600/phone (less $200 in imported parts), that’s $12 billion in net sales during the last four months of 2012, or $36 billion annualized, a 2% boost to GDP!…

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Daring Draghi

09/12/2012

Last week the ECB, finally, agreed to make unlimited purchases of Spanish and Italian short-term bonds if the countries ask for help and agree to make “changes” to their economies. While this will buy time for politicians, it does nothing…

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Inflation to the Rescue

09/11/2012

Rather than more quantitative easing, the Fed should stop targeting inflation and instead aim for a consistent level of nominal (unadjusted for inflation) GDP (NGDP) growth over the cycle. With this approach, the Fed would goose NGDP growth when times…

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Retraction Subtraction

09/10/2012

The economy added just 96,000 jobs in August. Worse, the DOL lowered the June and July estimates by 41,000! While the unemployment rate fell to 8.1%, it did so only because 368,000 Americans left the labor force, reducing the participation…

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Cuspid Collector

09/07/2012

The Friday file: In a sign the economy may be recovering, the tooth fairy has upped the average payment to $3.00 this year from $2.60 in ’11. 3% of children received less than a dollar, 30% received exactly a dollar…

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Gas Tax Gap

09/06/2012

The federal gas tax of 18.4 cents/gallon, and 24.4 cents on diesel, was last raised in ’93. Since then, it’s lost considerable buying power due to inflation and increases in fuel efficiency. As a result, paying for federal road construction…

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Governments Galore

09/05/2012

The number of governments in the US (from the federal government to special utility districts) fell to 89,055 in ’12 from 89,527 in ‘07, a decline of 0.5% and the first decline since ’72 when the number stood at 78,269.…

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Bond Bonanza

09/04/2012

With the US public debt fast approaching $11 trillion, and Treasury yields at record lows (10-yr bonds @ 1.58%, 30-yr bonds @ 2.69%), the Treasury should refinance all our debt and lock in these low rates for a generation or…

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