The Bowtie Economist's Daily Dose of 70-Word Wisdom

The Friday File: If you love chemistry, there is now more to love. Until recently there were 114 elements, now there are 118! These new “superheavy” elements exist very briefly. Ununtrium (atomic number 113) exists for less than a thousandth…

Chinese equity markets are declining because their economy is looking increasingly weak. Worse, the policy of chronically devaluing the yuan, despite a $600 billion trade surplus, has many convinced the government has simply run out of ideas. That, in turn,…

A combination of cheap financing, longer car notes (84 months), employment growth and an old fleet culminated in sales of 17.5 million cars in 2015, breaking the record of 17.3 million set in 2000 let alone the 2009 trough of…

While 2016 should be marginally better than 2015, there are several serious downside risks. The first is more rapid slowing than expected in China, followed closely by the deteriorating American manufacturing sector which is now in recession. The third is…

The Fed may experience increased dissention this year. It’s because the Fed bank presidents that vote change annually and this year’s group contains three interest rate hawks and one dove, replacing three doves and a hawk. However, it’s the seven…

I want to take this opportunity to thank you all for your interest in my daily economics blog. All of you enrich my life in many ways and I am profoundly appreciative. I wish you and yours the very best…

While forecasts are generally worth less than the paper they are printed on, if you want to try forecasting, read Daniel Kahneman’s Thinking Fast and Slow. A close second is Philip Tetlock and Dan Gardner’s Superforecasting: The Art and Science…

Last week, HUD reported that seasonally adjusted annualized new home sales hit 490,000. While up, the last time new home sales were this low before the Great Recession was in 9/91. Moreover, new home sales hit their all-time low of…

Large firms exist because they solve two problems. The first, the ability to internally perform activities more efficiently than smaller firms can, even when markets assist in interfirm product trading. The second, the ability to transform time. Banks take in…

In 2014, 26.3 million natural Christmas trees were purchased, down from 33.0 million in 2013, while 13.9 million manufactured trees were bought, down from 14.7 million in 2013. The average price was $39.50 for natural trees and $63.60 for plastic…