Posts Tagged ‘eisenberg and economics’
Tunnel Boring
The Friday File: The 35 mile Gotthard Base Tunnel in Switzerland will be the world’s longest rail tunnel when opened in 2016. Today, the world’s longest rail tunnel is the 33.5 mile Seikan Tunnel in Japan connecting the islands of Honshu and Hokkaido. The tunnel with the longest undersea portion is the Channel Tunnel at…
Read MoreFractious Fed
With the Fed (and everyone else) forecasting improved economic conditions in the second half of ’13, it’s not surprising that the Fed again reiterated that it MAY start tapering QE3 later this year. Interestingly, the Fed has been consistently over-optimistic when it comes to forecasting. Thus, I still think tapering commences no earlier than November.…
Read MoreCars in Neutral
Since hitting a low of 9 million in annualized auto sales in 2/09, strong demand has propelled new-car sales to 15.3 million as of 5/13. However, sales have flat-lined of late and are barely higher than in 1/13. This is in part why manufacturing growth is weakening. Yet automakers are cranking out more cars than…
Read MoreDarling Deflation!
The Friday File: With fear of inflation finally receding, the new concern is deflation. While high unemployment keeps wage growth in check, the price for sage business advice has absolutely tanked. Last year, lunch with Warren Buffet was auctioned off for a record $3.5 million; this year, just $1,000,100, a stunning 71.4% decline! At that…
Read MoreDisappearing Inflation
Adding to the low inflation environment we’re in, is Japan’s central-bank bond buying. By reducing the value of the Yen by about 20% in just a few months, it has made buying Japanese cars and other Japanese goods cheaper. And that puts downward pressure on prices of substitute goods. For example, to hold domestic market…
Read MoreDry Policy
The Friday file: Since 1940, raisin farmers have been required to give away a percentage of their crop to the Raisin Administrative Committee. The RAC annually decides how many raisins are needed and confiscates the rest. In 2003, farmers forfeited 47% of their crop! In a case now before the Supreme Court, raisin farmers are…
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