Archive for May 2015

The Friday file: While thought since 1917 to result from carbon dioxide being released by bacteria, repeated CT scans of Swiss cheese during its entire 130 day ripening period convincingly show that its distinctive holes are a result of microscopically small pieces of hay present in the milk. Now that cow milking takes place with…

Despite harsh words and deadlines that are always missed, the EC/ECB/IMF and Greece will make a deal freeing up billions to save Greece from bankruptcy. Whatever temporary agreement is forged will look great on paper and allow everyone to save face. That said, Greece won’t implement the required fiscal and institutional fixes and the status…

Over the past year, the unemployment rate declined in every state but North Dakota, where it rose from a microscopic 2.7% to 3.1%, the second lowest rate in the nation, behind only Nebraska at 2.5%! DC has the highest unemployment rate at 7.1%, Nevada follows at 7%. While it’s still early, last month Texas, Oklahoma…

$2 trillion in US corporate foreign earnings are overseas since repatriation would create huge tax liabilities. Obama wants to bring the money home by offering firms one-time corporate tax relief. Not likely. Republicans feel the proposed 14% rate on repatriated earnings is high, Democrats think it’s low, and big firms with lobbyists like the status…

The Friday File: On 5/5/1868, the Grand Army of the Republic, an advocacy group of Union Army Civil War veterans, established Decoration Day as a day to decorate graves of the war dead with flowers. Following WWI, Memorial Day was expanded to honor those who died in all American wars, and in 1971 it became…

While housing starts jumped an impressive 20% in April compared to March and permits bounced 10%, hold the applause. March was an unexpectedly lousy month, and through April 2015 all housing starts are up just 5.5% year-over-year; single-family starts are up 7.6%, multifamily starts (buildings with more than four units) are up 1% and permits…

Despite falling exports, rising inventories, declining industrial production, poor corporate profit growth and weak corporate investment, the labor market is strengthening. The number of students enrolled at four-year for-profit colleges and two-year public colleges, both educational institutions that cater to older students, declined 4.9% and 3.9% respectively. Conversely, enrollment at four-year public and private schools…

While retail and food service sales have fallen four of the last five months, retail sales are a lousy predictor of anything. During the Great Recession, retail sales turned negative fully eight months after the recession began! Moreover, at $5.2 trillion, Y-o-Y retail sales are 29.4% of GDP, not the 70% that is widely publicized.…

The Friday File: 75 years ago today, brothers Dick and Maurice McDonald opened the first McDonald’s in San Bernardino, CA. In 1948 they reduced their menu and sped up service, inventing fast food. In 1949 came fries, and in 1961 the brothers sold out to Ray Kroc for $2.7 million. The Big Mac was introduced…