Econ70

CONSUMER CONFIDENCE?

01/26/2011

26 I think consumers felt better as ‘11 got underway. According to the latest Conference Board survey the index came in better than expected in Jan. rising to 60.6 from 54 in Dec. But, the Univ. of MI Consumer Confidence…

Bond Market Message

01/25/2011

Bond markets are sending a strong message! That short term interest rates are higher in Canada than here is testament to the relative strength of their economy. The fact that their long rates are lower than ours suggests their long…

GOOD NEWS jobless

01/24/2011

Initial jobless claims for the week of 1/15 unexpectedly improved dipping to 404k from the downwardly revised 441k the week prior. This should translate into a better payrolls report when the data are released on 2/4. Also, the architectural billings…

Surged MoM

01/21/2011

Yes, building permits surged a pleasant 17% MoM in December. But consider that a 1-month wonder due to a builder rush to get applications in ahead of building code changes that were going into effect on 1/1/11 in NY, PA…

Taxes and Rates

01/20/2011

Ever wonder how much federal tax you pay? The answer (with some assumptions) depends on 4 tax rates. 1st you pay the combined income and payroll tax on earnings. 2nd you pay the corporate tax while you invest your money.…

Fed unleashes…

01/19/2011

The Fed sees the economy through the lens of a wealth effect stimulating consumer spending. And gains in the stock market have helped achieve that but only 20% of Americans own equity directly. But we all eat and most of…

Money, Money, Money….

01/18/2011

Despite recent enthusiasm real incomes are under pressure. With the 0.5% hike in the December U.S. CPI, real wages fell 0.4% and have fallen in 3 of the 4 last four months. The pace over the past 6 months is…

Bulging Balance Sheet

01/18/2011

In the past 3 years, the Federal Reserve’s balance sheet has expanded by $1.5 trillion yet nominal GDP has managed to rise by only $500 billion. Moreover, the U.S. public debt has exploded by about $5 trillion over that same…

The stock market is Too High

01/14/2011

Measures of investor sentiment are irrational―the bear share in the latest Investor Intelligence poll is down to 19.1% from 20.5% last week. The bull camp is all the way up to 57.3% from 54.5%. Back on Labor Day, the Investor…

Decennial Census

01/13/2011

From the recently released Decennial Census we see that 7 of the 9 states (AK FL NH NV SD TN TX WA WY) that do not levy an income-tax grew faster than the national average. And, the other two ND…

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