My afternoon walk about reads:

• Is the interest rate on reserves holding the economy back? (Noahpinion)
• The San Francisco Rent Explosion (Priceonomics) see also Sublets Lure Manhattan Start-Ups (NYT)
• Three Thought-Provoking Central Banking Reads (Quantitative Ease)
• Steve Cohen’s Overflowing Email Inbox (Moneybeat)
• The Complete Failure Of Austerity, In 1 Chart (HuffPo)
• Some Thoughts on Recent Chinese GDP Growth (Econbrowser)
•  Fed Criticized on Oversight of Bank-Owned Commodity Units (Bloomberg)
• An Analysis Of Long-Term Unemployment, With Some Help From Dilbert… (Economists Do It with Models) see also The New Economics of Part-Time Employment, Continued (Economix)
WTF?! Greenwich Joins New York at Top of U.S. Sushinomic Index (Bloomberg)
• NBC/WSJ poll: Faith in DC hits a low; 83% disapprove of Congress (First Read)

What are you reading?


U.S. Health Spending: One of These Things Not Like Others
Source: Real Time Economics

Category: Financial Press

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

9 Responses to “10 Wednesday PM Reads”

  1. Molesworth says:

    Who are the 17% who approve of Congress? Congressmen can’t possibly have that many relatives who enjoy having them over at Thanksgiving.
    What is stark is the clear divide of perception between Dems and Reps.

  2. rd says:

    Health Care Spending as a PErcent of GDP:

    The other countries clearly don’t know what they are doing and haven’t gotten it right.

  3. willid3 says:

    not sure that interest on reserves are the reason for low inflation

    me, i am thinking its that consumers dont look for a loan unless they have to, and then only for certain purchases, not all of them. and thats because of the big easy credit bubble that had been blown up by banks. and that only existed because consumers incomes weren’t keeping up with inflation. just like now. but this time consumers aren’t buying in. cause they dont have the money to do so any more.

    • WallaWalla says:

      Add that a large percentage of college students are now graduating with a debt. For the most part, 2009-2011 graduates already have debt and were not able to begin careers. See Frayed Prospects, Despite a Degree. Four years later, these are the same people that would normally be taking out loans for their first house or automobile. This group of people (myself included) are deferring these purchases that normally require a loan. This is just another issue to add to the list, but it certainly isn’t helping either.

  4. chartist says:

    Wow, Greenwich sushi is an indicator? I remember visiting Greenwich from Pittsburgh of all places…I walked into an upscale men’s store in 1999. A Greenwich sales clerk figured out I was serious and was a big help….I spent around $2500. Probably not a bad afternoon for the clerk in 1999,

  5. Slash says:

    I sadly have no problem believing there are 12% of people (in general) who are so stupid that they think Congress is doing a bang-up job.

    A Gallup poll last year said 46% of Americans believe in “creationism.” Even if Gallup got the numbers wildly wrong somehow, anything over 10% is appalling, in the 21st century.

  6. killben says:

    First, one of the best speeches by a Fed Governor. The insight expressed is great. But the last sentence is telling.

    “Still, if regulators become fixated on the tools at the expense of compliance and enforcement, the tools themselves will be meaningless. Only when such tools–be they capital-focused, liquidity-focused, margin–and haircut-focused, or underwriting-focused–are fully embedded into a comprehensive system of prudential regulation will they reach their potential in mitigating the growth of asset bubbles and providing resiliency against the awful consequences attendant to their destruction.”

    How are we doing on compliance and enforcement?

    The question is simply whether the Fed has only done the following (easier to achieve by keeping rates low and providing liquidity):

    1. recapitalized the banks
    2. increased asset prices

    Or has also implemented the following (having the tools is one thing and implementing them is another)

    1. Capital Regulation: As far as I know still under discussion
    2. Liquidity Regulation: Assume not implemented as 1 is still under discussion
    3. Margins and Haircuts: Don’t know. If this has been implemented it automatically reduces the growth of asset.
    4. Underwriting Restrictions: Probably. Providing loans only to credit worthy borrowers is one step.

    Any pointers on where we can obtain the data on the increase in margin debt during this run up of asset prices? What about the loans to Buy-to-rent operators? What about ARMs coming back? These probably are red flags?

  7. Willy2 says:

    “The San Francisco Rent Explosion”

    It confirms – IMO – something Harry S. Dent said. People are moving back from the suburbs to a townhouse in the city. More couples want to downsize their home because their children have left the home and are living in their own home/house. From say 1960 people moved out of the city into suburbia. But now that trend is reversing. But can these people still afford the rents ?

    “The Complete Failure Of Austerity, In 1 Chart”

    Another example of “Europe bashing”. Something like “Luckily, we don’t do austerity here in the US”. What should Europe do instead ? Wait untill the markets “take revenge” and themselves impose austerity ?
    A lot of spaniards blame(d) the Euro for rising prices/inflation. But the introduction of the Euro was in 2002 precisely when oil prices started to rise. On top of that the Euro has shielded a number of countries from much higher price inflation.

  8. CSF says:

    Unfortunately, the chart suggests that recent stabilization in health care spending might be related to the global recession and therefore temporary. Let’s hope not. There’s a tremendous opportunity here for the U.S..