But weak job growth in the face of big corporate profits. As I explained in the video of a previous post, the supply of money to capital income has increased, and they are enjoying the cost savings from low interest rates. They give many thanks to the Fed’s monetary policy. Meanwhile, lower interest rates are […]
This little video puts into 1 minute and 43 seconds, the simple challenges to Abenomics in Japan. Getting money from the corporations into the pockets of the people, namely labor, namely the consumers. Aging population on fixed income. They like deflation. Small percentage of children in population. Children are actually outnumbered by pets.
I have long been interested in the possible use of naked credit default swaps to profit from deliberately driving a firm bankrupt (see here, here, and here). My idea was that this was like arson of a building insured for more than it is worth. I was not the only one who had this idea. […]
Via Alternet: The list of Democrats who are entering these negotiations embracing the GOP’s terms continues. There are at least nine in the Senate. California’s Dianne Feinstein, Montana’s Max Baucus, West Virginia’s Joe Manchin, Delaware’s Chris Coons and Tom Carper, and Colorado’s Michael Bennett have all said they support cuts to entitlements in letters to […]
Brad DeLong reviews Alan Greenspan’s new book: Alan Greenspan: The Map and the Territory: Risk, Human Nature, and the Future of Forecasting: The true size of the American subprime problem was hidden for years by the defective bookkeeping of the GSEs…. Not until the summer of 2007 did the full magnitude of the subprime problem […]
Is there a case for raising interest rates by the Fed? Even a weird one? In the previous post, I explained the reasoning behind the current lower level of real GDP. The explanation is that real GDP declines to an equilibrium with the low interest rate in the money market for labor income. So if […]
by Mike Kimel The Efficient Racing Hypothesis Professor Sporkweather Mo of Fridgewater University has famously postulated that a driver cannot consistently achieve better than average finishes on a recklessness-adjusted basis, provided that all drivers have the same information on track and weather conditions at the start of a race. Using decades of data on drivers […]
Via the Real News is Bill Black on the JP Morgan setttlement: DESVARIEUX: Okay. And because of these massive losses, now JPMorgan has to pay this $13 billion settlement. But it’s really being reported as this big step toward bringing the banks to justice for their role in the financial crisis. Do you actually agree […]
by Tom aka Rusty Rustbelt Health Care Thoughts: Don’t Blame the Techies! The early phases of the exchange sign up have been an unqualified disaster. It must be the techies, right? Not necessarily. The program design is wildly complicated, with the exchange system trying to do a start-to-finish on a very complicated transaction and pinging […]