Posts Tagged ‘Graphsandlaughs’
Interesting Jobs
With 195,000 new jobs in June, the average monthly gain in the first half of 2013 is 202,000 – way up from the 130,000/month pace when QE3 began. Moreover, the unemployment rate remained unchanged, because 177,000 people joined the labor force! Unfortunately, 112,000 of the new jobs were either in leisure and hospitality or retail…
Read MoreWorth Less Used Cars
The Friday File: Wonder why driving a new car off the lot reduces its value by 25% or more? One reason has to do with the retail showroom price versus the resale/used price. The other has to do with car quality. Why return a new car unless it’s a lemon or suffered non-visible damage? Thus,…
Read MoreFreedom is Expensive
The Revolutionary War, fought between 1775 and 1783 cost $101 million then or about $2.4 billion today. That number includes only the cost of military operations. If you include interest on borrowed money and veterans’ benefits, costs are higher. The number of Revolutionary War dead totaled 4,435 out of a population of 2.75 million. Proportionally,…
Read MoreWeek of June 24th
Despite a huge downward revision of Q1 GDP growth from 2.4% to 1.8%, data for Q2 look decent. Durable goods orders look OK, home sales are good and despite sequestration and the payroll tax increase, consumer spending is holding up surprisingly well and savings rates actually edged up to 3.2% in May from 2.8% in…
Read MoreMorsi or Less
By giving the Muslim Brotherhood Government of President Muhammad Morsi a 48 hour deadline to compromise with the opposition or else face an Army-imposed solution, the Army is forcing Morsi out. As a result, the opposition now has no incentive to compromise. The only choices remaining for the Morsi government: resign, set a date for…
Read MoreWhat’s Your Name?
The Friday File: In 2012, the three most popular girls’ names in descending order were Sophia, Emma and Isabella. For boys, it was Jacob, Mason and Ethan. In 2012, the girl’s name most rapidly rising in popularity was Arya; for boys it was Major. Since 1913, the most popular girls’ names have been Mary, used…
Read MoreLess is Less
One reason the economy has been growing slowly is due to large productivity increases. GDP is 3% higher than before the bust, yet employment is down by 1.6%. Similarly, industrial production is 2% shy of its all-time high, yet capacity utilization is 4% below what it was on 12/07. As a result, spending on plant…
Read MoreEmerging Volatility
As the Fed flooded the US economy with cash, some of it ended up in emerging markets where risks and returns are higher than here. With US rates now rising, financial markets in those countries are being badly hit. Simultaneously and unrelated to the exodus of hot-money described above, some of these same economies like…
Read MoreBang Up Banks
While rising long-term interest rates will hurt banks by reducing the value of their bond portfolios, that will be a one-time hit and banks are exceptionally well capitalized and will easily withstand the losses. Conversely, a widening spread between short-term rates and long-term rates will boost bank profits on new loans as banks generally borrow…
Read MoreBaby Bounce
The Friday File: Retailers expect Britons to spend $100 million toasting the arrival the Duke and Duchess of Cambridge’s first child in July. Another $40 million will be spent on party food, $207 million on commemorative memorabilia and books and $38 million on toys. All totaled, almost $400 million not including the “Kate Effect” which…
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