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


You Say Tomato I Say To-mah-to

02/20/2013

Recently there’s been talk of currency wars. If a nation prints money to lower interest rates to promote growth and happens to weaken its currency, it’s OK. But if a country prints money to lower interest rates to weaken its…

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Ticket to Ride

02/19/2013

Despite having 26% of the US Market, the American Airlines-US Airways merger will proceed. That said, it will mean higher fares between smaller cities, reduced service on unprofitable routes and possibly fewer hubs. The key to minimizing harm to consumers…

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Buy Phone

02/15/2013

The Friday file: When buying stuff over the phone, men stay on the phone for 7 minutes and 23 seconds, women just 6.5 minutes. Men prefer to call between 3am and noon, women between noon and 9pm. Two-thirds of calls…

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Happy Valentine’s Day

02/14/2013

Americans will spend $19 billion on Valentine’s Day gifts — $60/person. 56% will be spent on a romantic partner, 20% on family, 7% on friends, 5% on teachers and 4% each on; co-workers, others, and pets! That’s $750 million on…

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Declining Deficit

02/13/2013

The federal deficit peaked at 10.1% of GDP in 2009, and fell to 6.94% of GDP by 2012. The CBO projects that it will fall to $845 billion or 5.3% this year. And, if no policy changes are made, the…

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The Zen of Yen

02/12/2013

New Japanese Prime Mister Shinzo Abe has pushed the Yen down 15% against the dollar since 10/12 because of his insistence that the Bank of Japan create inflation by pumping more money into the economy. Moreover, the new Abe appointed…

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Week in Review

02/11/2013

Decent Week in Review: Consumer credit expanded fueled by long-term student (yikes) and auto loans, the service sector continued to expand at a steady if uninspired rate, while manufacturing activity jumped to its highest level since 05/12. The best news,…

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Delayed Delivery

02/08/2013

The Friday File: In an effort to lick billions in losses, the USPS plans to halt Saturday delivery of letters in 8/13. Mail volume has plummeted from 210 billion pieces in 2008 to just 160 billion in 2012, a decline…

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Lobbying Loot

02/07/2013

In yet another sign of how omnipresent government is in the economy and thus how lucrative having access to and influencing policymakers is, the law firm of Cravath Swaine & Moore just hired David Kappos, departing Director of the US…

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Hagel Hurts

02/06/2013

Nominating Senator Hagel for Secretary of Defense raises serious doubts among allies and enemies that President Obama will use all means necessary to prevent Iran from acquiring nuclear weapons. Therefore, the chances of a negotiated settlement fall (despite biting sanctions),…

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