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


Aggressive Fed, Tough Sell

03/30/2011

We know the Bernanke lead Fed is willing to be extremely aggressive. But as we saw in 2010 the hurdle is high for more Quantitative Easing. We need evidence of A) a double-dip B) a stock market correction of at…

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Inflation Trumps Prospects

03/29/2011

The good: Consumer spending rose in Feb for an 8th consecutive month, spending rose 0.7% in February after a 0.3% increase in January. The Bad: Adjusted for inflation, consumer spending was up just 0.3% last month after being flat in…

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Myth Busting 101

03/28/2011

Oil companies produce less gas in the spring to make it more costly. NOT! Prices do rise in spring, but is because there is less cheap butane in it. Butane boils at low teperatures. In winter that is not a…

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Lackluster Predictions

03/25/2011

Sales for US durable goods fell 0.9% in Feb. Economists were looking for a rise of 1.5%. Oh well! Orders have declined in 4 of the past 5 months. Core capital goods (excludes volatile defense and transportation) declined 1.3% on…

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Falling Income

03/24/2011

In Feb there was no rise in average weekly wages, but there was a 0.5% inflation in consumer prices meaning that real incomes fell by 0.5%. They have now fallen in 5 of the last 6 months during with time…

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Lousy Job Market

03/23/2011

Latest job data for Jan showed job openings dropped 161K after a 45K decline in Dec and are at lowest level since 7/09. New hires also fell 193K and are down in 6 of last 7 months. The fact layoffs…

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Marketing Risk

03/22/2011

Can markets correctly price outsized risk? Given 9/11, Katrina, the financial collapse of ’08, the BP oil spill, the turmoil in the Arab world and the quake, tsunami and nuclear disaster in Japan, there are huge threats to stability. Unfortunately,…

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Watch Your Minutes!

03/21/2011

AT&T to buy T-mobile USA for $39bn from Deutsche Telekom creating the 2nd largest wireless carrier with 120m subscribers. These giant mergers occur in mature industries as the only way to get new customers is to buy them & the…

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Measuring Happiness

03/18/2011

There is a growing body of economic research being devoted to measuring happiness. And, to briefly summarize, what researchers have found is that money isn’t the key. What really gives people meaning and happiness is a combination of 4 things:…

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Misery Loves Company

03/17/2011

Newspaper advertising in the US has sunk to a 25 year low as readership migrates to the web where advertising is far cheaper. Advertisers spent $25.8 billion on newspaper and digital editions in 2010; the lowest since 1985. And, after…

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