In this post, earlier today, I forgot to link to this article over at Naked Capitalism. The salient point is, that specifically for investors, spending is related exclusively to income, never to wealth. It goes on to posit that QE and monetary policy are killing demand.  As Steve would say, “Go read it.”

Usually my articles present facts and data and try to drive down to a conclusion. This time, I’m going to drive down to a couple of questions. Recently, Noah Smith had a post on the subject of economic models titled Filling a hole or priming the pump?  It did quite a bit to restore my […]

In Part I we saw that labor’s earnings have lagged far behind GDP growth.  (More on earnings stagnation here) Meanwhile, corporate profits have grown at a rate that, until recently, increased over time, and they are now at a historically high fraction of GDP. Here is a specific look at the Finance Sector. The graph […]

INTRODUCTION 1) Rethug Speaker of the House John Boehner says that as a nation, “we’re broke“; Rethug presidential candidate Ron Paul claims America “should declare bankruptcy.”  I say these two are liars, and at least one of them is crazy. 2) Tyler Cowan says “we are poorer than we think we are,” due to mis-measurement […]

This is just a short post to illustrate the magnitude of GDP revisions. I downloaded quarterly GDP data from BEA in June 2011. I went back to BEA this morning to update the file. Forgetting about GDP revisions, I thought I’d be adding 2 or three more quarters of data, but discovered that all the […]

Matt Stoller, the former Senior Policy Advisor to Rep. Alan Grayson and a fellow at the Roosevelt Institute has a couple of very interesting articles posted at Naked Capitalism,  Why Ron Paul Challenges Liberals, and the follow-up, Naked Capitalism, “A Home for All Sorts of Bircher Nonsense” These are thought-provoking, in many ways insightful, and […]

In the previous post, I suggested that speculation is driving oil prices higher than they should be.  In this follow-up, I think I can show that oil prices are not behaving in a completely supply-demand determined way.  We’ll look at price activity, volatility, and an estimate of what rational pricing might be. First, here is […]

Last Spring, some Democrats and liberals (Ed Schultz and Bernie Sanders spring readily to mind) who have somehow resisted the enlightenment of unfettered free markets suggested that high oil prices are due to speculation. Noah Smith took this subject on, asking the question: “Do speculators cause oil and/or gas prices to rise above their “natural” […]

Jazzbumpa has been writing about various topics that involve economics for several years now. He maintains several blogs, one of which is Retirement Blues. He is data driven with a sense of humor and will add such to Angry Bear. Jazzbumpa is retired from a product development career in the auto industry. His education is […]