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


Anemic Recovery

06/28/2012

Following recessions this severe, economic recoveries are usually quite robust. But not this time. Why? Chronic lack of credit kills sales, depresses investment, and hurts productivity. Prolonged levels of high unemployment erode worker skills, making it hard for the unemployed…

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Bank Run 101

06/26/2012

Bank Run 101: Spaniards withdraw euros from Spanish banks and deposit them in German banks. Since Spanish banks still have the same loans outstanding, they go to the Spanish Central Bank for loans. Since all Spanish banks need money, the…

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Going to Pot

06/25/2012

While Uruguay’s bid to legalize marijuana sales makes it the first state to go to pot to raise revenues, the effort should be applauded. President Mijica’s proposal would charge the state with oversight over planting, grading and distribution of Marijuana.…

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Bet on Bowling

06/22/2012

The Friday File: Prior athletic accomplishments are not predictive of future performance with one exception — bowling. Scoring a goal doesn’t increase your chances of scoring another, and there’s no evidence of a “hot hand” in basketball. However, because lane…

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The Name is Bond

06/22/2012

The ongoing euro-zone debt crisis has been a borrowing bonanza to both Switzerland (not part of the EU) and Denmark (part of the EU but not the euro-zone). On Tuesday, Denmark issued 2-year bonds with a yield of -0.223% while…

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The Game of Life

06/21/2012

If you follow these rules: complete a high school degree, work full time, and wait until 21 to get married and have a baby, then you have only a 2% chance of being in poverty and a 72% chance of…

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Good Legislation

06/19/2012

Legislation requiring ATM operators (who may not be banks) to post placards listing fees for using ATM machines is being vigorously opposed by banking industry lobbyists, who prefer that fees be opaque. However, this is good legislation. It has low…

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GDP Down to Earth

06/18/2012

The US is 22% of world GDP, the Euro zone 18%, Brazil, Russia, India and China (the BRICs) about 20% and the rest of the world the other 40%. As for growth in calendar year ‘12, the BRICs should hit…

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Long Live the Boss

06/16/2012

The Friday File: While stress is a critical variable in determining life span, and people in leadership positions are often subject to profound stress, they have much lower mortality rates than persons at the bottom of the hierarchy. Turns out,…

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Majority Minority Nation

06/14/2012

It’s official, white non-Hispanic births are less than 50% of all births. Of the 4 million babies born during the year ending 7/11, 50.4% were to minorities, up from 48.6% a year earlier. Among adults over 50, African-Americans are the…

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