This simple ~ 4 minute recording comes from Colin Gordon’s “Growing Apart A Political History of American Inequality” . Yves Smith at Naked Capitalism picks up on it also. It is a good read in its entirety. Economists View also has it on today’s links. The video portion below gives a snap shot of what […]
The quick and dirty rule of thumb is that the relationship between bond yields and the S&P 500 PE is one-to-one. That is, 100 basis point change in bond yields should cause about a 100 basis point change in the PE. Since WWII, the long term trend for earnings growth has been some 7%, or […]
For me, Profits Without Production equates to Profits sans Direct Labor Input. In most manufacture in the US today, Direct Labor Input is an extremely small ~10% of the Cost of Manufacturing which will vary up and down dependent upon the industry. (For the accountants and the purists, this does not include customary or legislative […]
I’m getting to this a little late due to extensive travel (in South Africa now), but David Cay Johnston has a nice writeup of a recent paper on inequality based on the World Top Incomes Database. The paper, by Facundo Alvaredo et al., is important because it largely refutes the idea that technological change is […]
The software placed all the charts in the previous post after the page break. I do not know how to fix it so go to page 2 to real the post.
Update: Charts and data after the read more. With the Fed completing a two day meeting and Bernanke holding a press conference today it may be a good time to make a few comments about bond yields. In an open economy with a current account deficit the equilibrium interest rate is the one that attracts […]
To add to the fire Jazz and Steve have kindled, YOY inflation is at its lowest level historically according to the BEA and Next New Deal blog. It does not look like we need austerity policies and a little fiscal fire might put people back to work and stir the economy into growth. “Last Friday, […]
Just read this too-modestly titled post, and all the links as needed, until you understand it all the way down to your bones: A quick note on “helicopter drops” Kudos also to David Beckworth and Cardiff Garcia. Cross-posted at Asymptosis.
From Aguanomics come these links: Fracking is coming to California in a big way. It’s likely that frackers will be heavily regulated on water quality; it’s ironic that farmers are worried that frackers may be polluting, what? More than them? Ironic, isn’t it? Climate change: “Warmer water will kill off most of California’s native fish […]
Sorry for the thin posting lately…I have had some SI joint problems which makes for difficulty sitting still to focus. Via Keven Drum comes this research paper addressing the issue of sticky wages in the economics of today: First off, a new paper by a trio of researchers confirms some old news: Adjusted for inflation, […]