David Weidner wrote an article today called, Dow 17,000 is on the wrong side of history. It is a must read. Here is a brief recap… “But more than any modern bull market, this one stands alone in that it’s squarely out of step with economic growth. It’s being driven higher by just a few […]
by Sandwichman at Econospeak Stinting and saving… without stint or shirk! ‘Tis work, work, work, without stint or shirk. Till the world of his wares is full; This worker, I trow, we all of us know, And his name it is John Bull. —- “Oh, then,” cried the lad, “where’s the good, I should like […]
Paul Krugman is making a case that asset prices are not high once you realize that interest rates are not artificially low. So why are interest rates not artificially low? He states… “Once you accept the possibility that rates belong where they are, or even a bit lower, to correspond to the Wicksellian natural rate, […]
by Joseph Joyce China’s Outward FDI According to the United Nations Conference on Trade and Development’s latest World Investment Report Overview 2014, Foreign Direct Investment inflows to China reached $124 billion last year, while outflows rose to $101 billion. The Report anticipates that outflows will surpass inflows within the next few years, changing China from […]
by New deal democrat at Bondadd blog on Monday morning: A thought for Sunday: the new 3/5’s Rule and plight of the DREAMers The 3/5’s rule was one of the ugly compromises that had to be made in order to bring the slave-owning South into the Federal republic under the Constitution. It stated: Representatives and […]
There are what I perceived as problems with the Brookings Study. Just one example: they base much of their analyses upon “lifetime earnings associated with earning a bachelor’s degree”. The average lifetimes earnings of degree holders is certainly skewed significantly upwards by the top 10% of earners (who account for over 40% of all earnings, […]
Unemployment dropped to 6.1% in June and down to 6.2% for the 2nd quarter. Unemployment is dropping faster than many economists expected. I would explain the fast drop as a reaction by firms to maintain their profit rates as labor share and productivity are both stationary now. The recent drops in unemployment are evidence that […]
From Center for Economic and Policy Development comes this framing….Global Warming and the Which Way Is Up Problem in Economic Print It is painful to read Eduardo Porter’s column on the prospects for slowing global warming and China’s greenhouse gas emissions. It’s not that Porter got anything in particular wrong; he is presenting standard projections […]
by Sandwichman at Econospeak (reposted with permission from the author) Supply Creates Its Own Demon II: You Don’t, Say! Karl Marx could hardly bring himself to utter the name of J. B. Say without affixing to it some contemptuous description or sarcastic remark: “Say’s earth-shaking discovery…” “…adopted by Ricardo from the tedious Say (and […]
From the NYT comes this quick look at the vaccination issues you might have heard about in the news…Vaccine Costs Soaring and Paying till it hurts… Vaccination prices have gone from single digits to sometimes triple digits in the last two decades, creating dilemmas for doctors and their patients as well as straining public health […]