by Bruce Webb Digby points us to the following NYT piece: At $106.5 Million, a Picasso Sets an Auction Record with what is in one sense an understandable bitter comment “Hey, dead artists need work too.” And as a comment on the odd priorities of our plutocracy a reasonable moral judgement, but as an economic […]

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Happy Holidays and Merry Christmas from all the Bears

With a hat tip to Rebecca’s post below, normalized borrowing growth in several sectors over the past 25 years. (Source: FRB Flow of Funds data) Yes, there are three very similar (shades of blue) lines—but they are all household and non-profit data. (The growth in “credit market instruments” is, presumably, primarily driven by the non-profit […]

Update: The term corporate savings below refers to excess saving, gross saving over gross domestic investment, as a percentage of GDP. This is the defined 3-sector financial balance model (referred to below). The Federal Reserve Flow of Funds showed a third quarter shift in the financial sector balances: the corporate saving rate declined 0,25% to […]

With the release of the November data on real personal consumption expenditures it looks like real PCE growth in the fourth quarter will be over 4% (SAAR) as compared to growth rates of 0.9%, 1.9%,2.2% and 2.8% over the last four quarters, respectively. October real PCE increased 0.5% and November was up 0.3%. So if […]

I’m late to seeing this, and Bruce has probably already covered it, but Doug Elmendorg at the CBO inadvertently gives away the game on the Administration’s approach to—let alone opinion of—the Social Security “Trust Fund”: The balances in trust funds have accrued because income associated with those programs has exceeded the expenses; when that happens, […]

by Tom aka Rusty Rustbelt Health Care: Regulatory Inconsistency When an elderly patient is in the hospital suffering from dementia, depression or schizophrenia, the hospital nurses may administer any psychoactive or anti-psychotic drug ordered by the physician within normal protocols and practices. When the patient becomes a nursing home resident a few days later, the […]

Had a long day of Social Security related blogginess so will just put up this to spark some discussion: In Part One of this post I discussed the danger that the 2% ‘temporary’ payroll tax cut might be a Trojan Horse destined never to expire in full or at all only to have any continuing […]