Econ70

Tomorrow, based on the date of the signing of the Declaration of Independence, the US celebrates its 243rd birthday. However, the United States officially became a sovereign nation by the Treaty of Paris, which was signed in 1783, making the…

Since the end of WWII, there have been eleven economic recoveries. While this one is now the longest, real GDP is just slightly more than 20% higher than its pre-recession peak. Measured this way, the current recovery ranks fifth, having…

Today, the current US economic recovery becomes the longest in US history at 10 years and one day, surpassing the previous record expansion of exactly 10 years and that ended in 3/01. At this point, I suspect this recovery will…

The Friday File: The costliest divorce settlement in history is that between Jeff and McKenzie Bezos; $36 billion. A distant second is the settlement between Alec and Jocelyn Wildenstein for $3.8 billion back in 1999. That same year (a good…

From 2000-2007, American and Canadian debt-to-disposable-income ratios rose in tandem from 100% to 140%. They have since diverged. The US rate has steadily declined to 103%, while in Canada it’s 175%, one of the highest ratios anywhere! Canadians now spend…

After a surprisingly strong 4/19 when new home sales hit an annualized rate of 679,000, new home sales returned to Earth in May with sales of 626,000. Nonetheless, YTD sales are up 4%. What’s worrying; new home inventories have been…

Despite being better educated, in 2016 Millennial households had average net worth of $92,000; 40% less than Gen Xers and 20% less than Boomers (adjusted for inflation) at the same point in their respective lives. 33% of Millennials are homeowners,…

While the Trump administration ramps up its rhetoric about reforming housing finance, ignore it. Absent Congressional action, there is little that can meaningfully be done. The FHFA can allow Fannie and Freddie to keep their profits but that’s symbolic when…

The Friday File: In 1980, the top 1% of touring musicians/groups received 25% of ticket revenue; the next 4% of performers collected 35%. By 2017, the top 1% of musicians earned 60% of world-wide ticket revenues, while the next 4%…

The FDA has just approved the gene therapy Zolgensma (Latin for staggeringly expensive). It’s a treatment for an inherited disease called spinal muscular atrophy, a condition affecting 450 newborns/year in the US. If untreated, it typically kills its victims by…