Econ70

GDP Gouge While 2020 US GDP growth should be about 2%, two threats that could meaningfully impact the short run are Boeing, which will reduce 20Q1 GDP by 0.4% and the Wuhan Coronavirus, which may reduce GDP by around 0.3%.…

Amazon’s 19Q4 corporate revenue hit $87.4 billion due to robust holiday sales, and operating income was $3.9 billion. These results made Amazon the 4th US firm to have a market cap of over $1 trillion. More interestingly, Amazon Web Services,…

The US economy grew 2.1% in 19Q4 and 2.3% in CY2019. While that’s the slowest pace since 2016, it’s the average growth rate since the recovery began in 7/09. Looking to 2020, growth will benignly decline to 2%. Consumer spending…

The Friday File: Last Sunday, Kobe Bryant, 41, his 13-year-old daughter, and six others were killed in a helicopter crash in LA. Bryant began making history when at 17 he became the youngest NBA player ever. During his 20-year career…

US new home sales fell to an annual rate of 694,000 in 12/19; a mildly disappointing end to a dismal decade which saw single-family new-homes sales average just 484,000/year. In the prior decade (2000-2009), single-family sales averaged 901,000, in the…

Medical Money From 1998-2017, the cost of medical services doubled, and hospital services tripled; the CPI rose by just 50%. Why? Healthcare bills are paid by third parties like insurance companies and the government. Consumers have no incentive to monitor…

Rather than fighting regulation, Uber, the ride hailing leader, should embrace it! Uber struggles to make money not due to compliance with rules and regulations but from competition from startups forcing it to compete on price. Uber should graciously agree…

The economic impact of the deadly 2003 SARS outbreak in China knocked 0.5% off annual GDP in Taiwan and Singapore, 1% in China, and 2.5% in Hong Kong. Impacts were negligible in the rest of Asia and trivial elsewhere. While…

The Friday File: Recently, the gameshow Jeopardy! had a tournament featuring only the three highest earning contestants, Ken Jennings, Brad Rutter and James Holtzhauer, with the winner taking home a cool million! The winner was the first player to win…

December existing home sales jumped 10.8% to a seasonally adjusted annual rate of 5.54 million, best since 2/18. That pushed up existing home sales in CY2019 to 5.344 million, up exactly 1,000 units compared to CY2018! Sales should rise only…