Econ70

Wealth Matters

08/05/2011

The stock market has fallen by about 10% in the last two weeks, destroying about $2 trillion of wealth. If the market does not rebound quickly this will cut GDP by about $70 billion; half a percent. Here’s why. Suppose…

Blackmailer’s Paradox

08/04/2011

Faced with a no new taxes or a debt default ultimatum from the Tea Party, Obama should have either called their bluff and appeared genuinely willing to let the US default or should have pursued the 14th amendment option with…

Pork Bellies: RIP

08/03/2011

No future for pork bellies: Two weeks ago at the ripe old age of 50, pork belly futures passed away. Once the most popular and glamorous contract on the Chicago Mercantile Exchange it was also the first involving livestock. But,…

Everything is falling…

08/02/2011

Rural America Empties Out

08/01/2011

New census data show metro areas booming while Rural America empties out. The share of people living in rural areas over the past decade fell to 16%, from 20% and from 72% (yes, 72%) in 1910. Conversely, 51% of people…

Corporate Profits at Record Levels

07/29/2011

Federal Budgeting is Nutty

07/28/2011

Debt Ceiling Debacle

07/27/2011

Debt Ceiling Debacle: In the foreign exchange (FX) market commodity-sensitive Australian and New Zealand dollars have hit record highs. Gold is also galloping upwards. There is also a strong desire to hold super safe Swiss Francs. Banks and money market…

NBA Lockout

07/26/2011

With an NBA lockout a possibility some NBA players are threatening to play in Europe. Don’t believe them. Aside from legal issues there are physical worries: an injury suffered while playing in Europe could void a player’s NBA contract. Also,…

Millenials

07/25/2011

The Millennials (born ‘81 and ‘00) are the largest age group in the US, numbering 85 million or 28% of the total US population. By contrast, there are just 79 million Baby Boomers (26%), and 61 million Generation Xers representing…

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