70 Words

Painless Price Rise

05/23/2013

Despite the recent rise in house prices and residential shelter costs comprising 32% of the CPI, rising house prices won’t, in the short run, worsen inflation. This is because the CPI does not look at house prices, but rather the…

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Tax Unreform

05/22/2013

Between Benghazi, the heavy-handed AP data grab and the IRS fiasco, any tiny window for tax reform has all but shut. While Senator Baucus and Representative Camp, who head up both tax writing committees have 17 months until the next…

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Excellent Equities Environment

05/21/2013

The current bull market that began on 3/9/09 has lifted the S&P 500 over 146%, and now ranks as the fifth best bull market in history. It’s also within 10% of the fourth best rally of 157.70% that occurred between…

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More Mediocrity

05/20/2013

The good: the index of leading economic indicators rose, as did retail sales, consumer sentiment, and housing permits. The bad: Europe is now officially in recession, first-time unemployment claims rose, manufacturing activity declined, inflation as measured four different ways is…

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Watch List

05/17/2013

The Friday File: In 2011, 1.15 billion watches sold for $30 billion. China sold the most, almost 700 million pieces, and at an average price of $2/watch; their industry was worth $1.5 billion. By contrast, the average price of the…

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Of Interest

05/16/2013

The interest rate setting Federal Reserve Open Market Committee always includes the seven Governors of the Federal Reserve System and the President of the Federal Reserve Bank (FRB) NY. The remaining four members rotate among the Presidents of the other…

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Unintented Consequences

05/15/2013

Forcing Congress to obtain health insurance through exchanges is bad policy. Because they get excellent coverage, Congress would push for top-flight exchange healthcare. This would encourage employers to drop their plans because their employees could get great congressional quality subsidized…

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Scared Debtless

05/14/2013

In Q1 2013, total household indebtedness fell to $11.23 trillion, 1% lower than in Q4 2012 and way down from the peak of $12.68 trillion in Q3 2008. Mortgage debt now stands at $7.93 trillion, HELOCs are at $522 billion,…

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Gassing Up

05/13/2013

Retail sales jumped 0.1% in April and while not great, it beats the 0.5% decline in March! Moreover, it shows that consumers are spending despite the sequester and the payroll tax increase. And a key reason was the huge 3.5%…

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Economic Models

05/10/2013

The Friday File: Female models like Heidi Klum and Bar Rafaeli make millions annually, yet there isn’t even one famous male model. I think this is this because women spend much more on fashion and cosmetics than men. Moreover, they…

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