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


Book Betting

06/19/2014

The current fight between book publisher Hachette and Amazon over pricing is one between a cartel (the publishers) and a monopolist (Amazon). Turns out e-books are 40% more profitable for publishers and 40% less remunerative to authors than hardcover books!…

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Fed Following

06/18/2014

At today’s press conference, Fed Chairwoman Yellen did away with forward guidance. Instead, she suggested that the Fed will rely on an array of lagging economic indicators to set policy. She is signaling that the Fed will keep interest rates…

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Bullish Britain

06/17/2014

Across the pond, the UK economy is really picking up. Employment is up sharply, real GDP rose 3.1% in the first quarter, the best growth since 2008, the labor force participation rate is 72.9%, the highest it has been almost…

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Increasing Interest

06/16/2014

While expecting Q1 GDP growth to be revised down to an annualized rate of -2% from the current -1%, expect the Fed to keep tapering on autopilot and reduce it by another $10 billion to $35 billion/month at the conclusion…

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Super Soccer

06/13/2014

The Friday File: While 32 teams compete in the World Cup, only a handful have a chance at winning and Team USA isn’t one of them. Brazil, Argentina and Germany are clear favorites with Columbia, Netherlands, Portugal and Uruguay as…

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Similar Schools

06/12/2014

The LA County judge that struck down California’s teacher tenure laws as unconstitutional is following in the footsteps of Brown V. Board of Education. In Brown, the Supreme Court forced all schools in a district to have demographically similar student…

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Mediocre Monetary Meddling

06/11/2014

Rather than using a cannon, last week the ECB used a popgun. By reducing the rate it charges banks on loans and by charging banks on deposits held at the central bank, the ECB hopes to spur lending. It won’t…

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Idiotic Incentives

06/10/2014

President Obama’s decision to give student loan borrowers the option of limiting loan payments to 10% of their income and to forgive all balances after 20 years — 10 years if the borrower works for government — is harmful. It…

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Junky Jobs

06/09/2014

While the total number of working Americans now finally exceeds the number that were working before the recession began, the quality of the new jobs is not great. While food service, social assistance and home healthcare have seen the largest…

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Poor Poppy Planning

06/06/2014

The Friday file: Since invading Afghanistan, the US has spent about $10 billion trying to eradicate poppy production. The result: in 2013 500,000 acres of poppies, a new record amount, were planted. Worse, the poppy planting that was eliminated occurred…

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