Econ70
With a weakening world economy and a strengthening US dollar, commodity prices are falling and that’s good news. In particular, the price of West Texas Intermediate crude has fallen from a 52 week high of $110.85 to $81.50, a drop…
The Friday File: Digital piracy hurts artists and record companies, but consumers? By constructing indexes of music quality based on critics’ opinions, radio play, and sales volume, there’s no evidence of a decline. The indexes all show music quality rising…
Given weak job numbers, a slowing world economy, and escalating financial stresses from Europe, the Fed will probably act. Since it can’t buy more long-term Treasuries (it nearly owns them all) or increase the size of its balance sheet (Republicans…
While Chris Bosh is the 3rd best player on the Miami Heat, without him they can’t win a championship. When he plays, the Boston Celtics can’t double-team Dwayne Wade freeing him to be aggressive. With Bosh out Wade is vastly…
The core euro problem is the dramatic differences in economic performance of the 17 member countries. Germany’s a star, the PIIGS aren’t. By sharing the euro devaluation is not possible. Moreover, the Germans won’t tolerate inflation, and labor mobility is…
While capping the size of sugary beverages sold at NYC theaters, restaurants and sports facilities is noble, it’s so easily bypassed, “I’ll have three 16-oz sodas and three straws” it’s worthless. Since peaking in ’98, consumption of carbonated sugary drinks…
The Friday File: The Economist, using only the price of a Big Mac, created “the Big Mac Index” to measure the costs of living in each country. Knowing this, Argentina’s Prime Minister pushed McDonalds to keep the price of Big…
If current economic conditions persist, Obama will win with 50.2% of the vote according to a widely followed economic forecasting model. The key will be job growth numbers from now through August. Midyear growth was strong in ’72, ’84, 96…
The Spanish banking system is crumbling. While 10-year Treasuries yield 1.62%, Spain’s 10—year bonds yield 6.61%, near the all-time of 6.78% set 11/25/11. If yields stay this high, Spain will need a bail-out. Problem is, as the world’s 13th largest…
On 6/30/12 the weak economic recovery we’re experiencing will be three years old. Yet, absent microscopic interest rates and huge budget deficits there would be no recovery. Simply put, we’re hooked on cheap money and big spending and aren’t yet…