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


Cheer up, things could be worse!

09/08/2011

The Institute of Supply Management’s August manufacturing report was very weak with a reading of 50.4 barely above the 50 level, indicating expansion. And, its steadily decline from a high of 61.4 in Feb is troubling. But, don’t fret. Other…

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All Talk No Action

09/07/2011

The DOJ’s decision to block AT&T’s takeover of T-Mobile is good policy because the loss of T-Mobile would have probably raised prices and reduced handset offerings. But, the win will be phyrric if T-Mobile cannot sell itself soon as it’s…

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The Fed, Not Out of Ammo!

09/06/2011

The Federal Reserve still has options, short of QE3, if it wants to encourage more lending. First, it can reduce to zero the rate of interest it pays banks on deposits held at the Fed. Second, it could sell short…

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Clipping Chinese Competition

09/02/2011

The Friday File: Though the US no longer makes high-tech stuff like ipads and cell phones, or low tech stuff like shoes, we are a paper clip powerhouse. Most of the 11 billion sold, made in the US. Why? Since…

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How Much for a Life?

09/01/2011

NHTSA recently concluded that equipping large school buses (those weighing more than 10,000 lbs) with seat belts is unnecessary. NHTSA claims large busses are among the safest modes of transit and that when children are killed, seat belts would not…

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A Yen for your Thoughts

08/31/2011

Despite a perpetually lousy economy, the Yen continues to rise; Three reasons. First, deflation makes the Yen worth more tomorrow than today encouraging investors to hold it despite microscopic interest rates. Second, Japan’s large trade surplus ensures continued demand for…

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Bad Debt

08/30/2011

Total debt is the sum of all IOUs ever issued by the Treasury and is (egad) 98% of GDP. Total debt is the sum of the public debt–which is held by individuals, foreign gov’ts and financial institutions–and is 61% of…

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Inflation? What inflation

08/29/2011

Researchers at the Federal Reserve Bank of San Francisco find that 2.7% of consumer spending went to Chinese made items. Moreover, for every $1 spent on Chinese made goods, fully 55 cents goes to US businesses for services like shipping,…

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Gimmie Shelter

08/26/2011

The Friday File: The US Tax Court just ruled that under the Parsonage Allowance of 1921 an ordained clergy member may now live tax-free in an UNLIMITED number of homes owned by his or her religious organization, or receive a…

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Sell Phone Patents for Sale

08/25/2011

Google’s $12.5 billion purchase of Motorola Mobility, and its 17K patents, will get FTC and Justice Department approval. After all, it’s a big company picking up a small one in a very different space. The big concern is that Google…

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