Econ70

Alien Activity

07/18/2014

The Friday File: Since 1974, there have been almost 90,000 reported UFO sightings worldwide, most in the USA! Washington State is number one in sightings per capita (and number two in total sightings behind California) followed closely by Montana and…

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Abominable Abodes

07/17/2014

Today’s housing numbers stank! Starts for Jan-June 2014 are up 6% compared to 2013, single-family starts up 1%! Multifamily is up 18%. With these numbers a premature rate hike will kill single-family construction. Yes, weather was bad, prices are up,…

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Peppy Profits

07/16/2014

Tax inversion deals, where a US firm buys a foreign-based firm in a low tax nation and then locates the merged firm’s headquarters overseas, are particularly appealing for drug and computer chip makers. It’s because both generate substantial overseas profits…

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Mixed Messages

07/15/2014

While the unemployment rate, inflation rate, and job creation numbers are starting to improve, GDP growth, wage growth, labor force participation, labor productivity and home building remain weak. It’s as if the economy is schizophrenic! Since the Fed has no…

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Troubled Timing

07/14/2014

While the CBO projects the Export-Import Bank will make a profit of $14 billion through 2024 if it continues borrowing at the subsidized US Treasury rate, at market interest rates the Bank will post a $2 billion loss. While hardly…

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Hurricane Henrietta

07/11/2014

The Friday File: While Atlantic hurricane names have alternated between the sexes since 1979, it turns out hurricanes with women’s names are much more deadly. While names don’t matter for low-damage hurricanes, for high-damage storms the more feminine the name…

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Sorry Settlement

07/10/2014

While Citi will soon pay $7 billion to settle with the DOJ over mortgage abuses, and BNP Paribas just paid $9 billion for violations of US sanctions, and recently JP Morgan paid $13 billion over various residential-backed mortgage securities, the…

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Highway Happenings

07/09/2014

In a display of bi-partisan common sense rarely seen on Capitol Hill, short-term financing to help the virtually depleted Highway Trust Fund (HTF) through next year seems likely. The HTF is financed by a gas tax of 18.4 cents/gallon that…

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Popping Prices

07/08/2014

With bank lending very weak outside of commercial and industrial loans, global growth lackluster, Europe on the verge of deflation, a slightly appreciating US dollar and the number of unemployed workers still elevated, conditions don’t suggest a rapid rise in…

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Guessing Growth

07/07/2014

Q2 GDP will come in below 3%. While inventories were a killer in Q1 they will help in Q2, as will a return to normal weather. There will also be extra spending due to rebounding demand following the Q1 cold…

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