Relevant and even prescient commentary on news, politics and the economy.

The tragedy of the ratings.

Robert Waldmann Waxes poetic about the lost credibility of the AAA rating. For possible comic value I share my reflections. What went wrong with the ratings agencies ? I think the central problem is that the ratings agencies long provided a service of immense value to society, and were paid a tiny fraction of that […]

FYI – labor contracts by auto company

by reader Movie Guy It might be helpful to read the 2007 contracts negotiated between the UAW and GM, Ford, Chrysler. Recommend reading the highlights if not the contracts. Might improve the discussions on this matter. GM-UAW Labor Contract – 2007 UAW presentation UAW-GM 2007 Contract GM presentation UAW-GM 2007 Contract Ford-UAW Labor Contract – […]

Swapping currencies

rdan RGE Monitor notes this aspect of currency trading. (May require subscription for the full article) Dec 12: South Korea and Japan have agreed to increase an existing unconditional KRW-JPY swap arrangement to $20bn from $3b effective until April 2009. This supplements a $10b agreement that can be used in times of crisis.China and South […]

We have become so efficient that we now have an enormous trade deficit.

rdan (part of e-mail communications lifted for the idea) “Although the share of manufacturing employment has steadily fallen over time, the share of manufacturing output (to total output) has been remarkably stable over the same period. Labor productivity growth in manufacturing over this period can explain the falling employment share and the constant output share.” […]

Death by shoe

Shoe-Hurling Iraqi Becomes a Folk Hero – NYTimes.com Sweg said it sooner than me: It is clear that this is an episode of non-violent civil disobedience even if a certain element would prefer to paint it in a more menacing light. I am unaware of any reported deaths by shoe. But there does seem to […]

The Point at which I stopped giving Barry O the benefit of the doubt

As quoted by Greg Sargent: I am fierce advocate for equality for gay and — well, let me start by talking about my own views. I think it is no secret that I am a fierce advocate for equality for gay and lesbian Americans. It is something I have been consistent on and something I […]

What helps the real economy?

rdan(hat tip ataxingmatter) Start Making Sense notes: In 2004, Congress enacted a temporary dividends received deduction for U.S. multinationals that repatriated foreign earnings. Under the temporary DRD, the tax rate on dividends from foreign subsidiaries effectively was lowered from as high as 35 percent to just 5.25 percent, but only for dividends during a 12-month […]