Good Weds morn. My early gift to you:

• The Most Important Economic Stories of 2013–in 41 Graphs (The Atlantic)

• Charity begins at home (Fidelity), see also How to Be Generous This Season Without Writing a Check (WSJ)

• Secular stagnation and the bastardisation of Keynes (FT Alphaville)


Continues Here

Category: Markets

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.

21 Responses to “10 Wednesday AM Reads”

  1. hue says:

    America’s Economy Is Officially Inside-Out (Harvard Biz Review) No other example in the history of modern democracies of progress actually becoming regress.

    How ALEC Serves As A ‘Dating Service’ For Politicians And Corporations (npr)

    I Ain’t Robot: Meet the Telemarketer Who Denies She’s a Robot (Time)

  2. VennData says:

    GOP passes budget deal with Obama.

    GOP stands for “Giving Obama’s Priorities”

    The guys who were just re-doing impeachment have as quietly as possible, sat down with Satan himself.

    Now when the Senate passes this, the “The Democratic Senate hasn’t passed a budget in five years” meme will be tossed out like the “nobody’s been put to jail for Wall Street Crimes” nuttiness.

    The GOP thwarted the Senate budgets with their veto. The GOP is the biggest problem in America.

  3. willid3 says:

    a first. when bombs became power?

    seems like after the cold war the US found out that when the USSR disintegrated that a lot of their nuclear material for bombs was just laying around. so a plan was made to buy that material and ship to the US for use in nuclear power plants here. turned into a rare win – win for all. but now that plan is coming to an end. seems Russia no longer needs the money any more

  4. willid3 says:

    so who met with the regulators on the new banking rules?

    the big banks? care to guess how that will work out?

  5. willid3 says:

    possible experiment of what might have happened had GM and Chrysler been allowed to collapes?

    not exactly the same. but close?

  6. willid3 says:

    so we allow banks to pay a small penalty for trashing the economy but if write a $83 bad check you could go to jail? for a long time?

  7. RW says:

    Just a general comment. I’ve seen a fair amount of chatter that either misunderstand Larry Summer’s secular stagnation hypothesis or seem to get its gist but construe it as approval; that bubbles are somehow desirable or necessary.

    Look, it’s a thought experiment: If the economy was not running above potential during those bubble years, even with all the increasing levels of debt pushing up demand, then imagine what the economy would have been like without the bubbles. That is, if the bubbles had not happened then demand would have been much lower and unemployment would have been much higher.

    It may be true that financial recessions tend to be more prolonged than average but we have been out of recession for more than four years and unemployment as well as under-employment is still relatively high — this looks much worse in terms of labor participation rate or labor/population ratio — and the economy is still running well below potential with little sign of catching up any time soon.

    The question then is why?

    One answer that fits all the known facts is secular stagnation: If all bubbles had been avoided then demand would have been too weak to sustain full employment.

    If this is true then it points to a fundamental problem with the economy that needs further illumination if we hope to fight it successfully.

    I’m no fan of Larry Summers and was relieved when he withdrew from the Fed Chair nomination process but the notion that he (or anyone else taking his hypothesis seriously) is advocating bubbles much less claiming continuing bubbles are a good thing is simply incorrect.

  8. rd says:

    A very interesting op-ed about how the most expensive military in the world has its primary defence strategy focused on ensuring the enemy fills out the appropriate paperwork correctly before going to war:

    It seems liek there is significant room for cuts in the US military budgets although Congress may need to reduce some of its own bureaucratic manadates.

    • LeftCoastIndependent says:

      Only if you use the service will you pay the fee, so at least it’s a choice. But are pay cuts a tax on workers ? Taking home less money so corporate America can keep rolling in the dough.