Archive for April, 2008
« Previous EntriesOnline Interview Regarding The Confiscation of American Prosperity
Submitted by Unsettling Economics
Jon Bailes and Cihan Aksan of the online publication, state of nature, conducted an online interview with me regarding my book, The Confiscation of American Prosperity, which just appeared.
http://www.stateofnature.org/michaelPerelman.html
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JOE TURNS DEFENSIVE
Submitted by The Capital Spectator
The economy managed to grow slightly in this year’s first quarter, the government reported today. GDP rose by an annualized 0.6% in this year’s first three months, matching the growth rate in Q4 2007. Given all the recession anxiety of late, that’s a victory of sorts. But this is no time [...]
THE MEANING OF “REFOCUS”
Submitted by The Capital Spectator
Perhaps it signifies nothing, but the timing is suspicious.
Last December, the Treasury Department announced that it was sharply reducing the annual limit on investments in the inflation-indexed series of U.S. Savings Bonds, a.k.a., I-Bonds, to $5,000 a year as of January 1, 2008–down from $30,000 a year previously. (The $5,000/yr limit [...]
GDP still growing (barely)
Submitted by Econbrowser
The Bureau of Economic Analysis reported today that U.S. real GDP grew at a 0.6% annual rate in the first quarter of 2008, the same tepid growth rate we saw in the fourth quarter of last year.
Recent sluggish growth rates bring our recession indicator index for the fourth quarter of 2007 up to [...]
Recession Odds Fall On Intrade
Submitted by CARPE DIEM
The chart above (click to enlarge) shows the falling odds of a 2008 recession, based on futures trading on Intrade.com over the last 14 days. From a 70% chance of a 2008 recession on April 17, the odds have now fallen below 45%.
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World’s Most Worthless Currencies
Submitted by CARPE DIEM
#1 is the new 10,000,000 Zimbabwe dollar banknote (pictured above), which is currently worth less than $4. See the list here.
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NO RECESSION
Submitted by CARPE DIEM
According to today’s Bureau of Economic Analysis report, “Real gross domestic product — the output of goods and services produced by labor and property located in the United States — increased at an annual rate of 0.6% in the first quarter of 2008, according to advance estimates. In the fourth quarter, [...]
Pussy Willow Sunday
Submitted by CARPE DIEM
Our group was in Togliatti, Russia on Palm Sunday (April 20 this year according to the Russian orthodox calendar) and we visited a Russian Orthodox church and were surprised to see people carrying pussy willows instead of palm branches (which do not grow that far north).
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The Financial Commentary ‘Peter Principle’
Submitted by A Dash of Insight
The world of financial commentary now has its own version of the Peter Principle. There are so many outlets — financial television, podcasts, mainstream blogs, individual blogs — that the editorial process has been overwhelmed.
In the old days — that would be a couple of years ago — publication in [...]
Thoughts on Naomi Klein’s Shock Doctrine
Submitted by Unsettling Economics
I have only read a hundred pages of Naomi Klein’s shocked doctrine, but I thought that it was a very valuable work so far. It should not be judged either as an work of economic history as an all-encompassing theory of capitalism.
Even so, pointing out the commonality between New Orleans, Chile, and [...]
Result of U.S. War on Drugs: PRISON NATION
Submitted by CARPE DIEM
The United States leads the world in prisoner production. There are 2.3 million people behind bars. China, with four times as many people, has 1.6 million in prison.
In terms of population, the United States has 738 people in prison for every 100,000, while the closest competitor in this regard is Russia with [...]
Strippers Can’t Compete with Internet
Submitted by CARPE DIEM
TORONTO, April 28 (UPI) — The number of strippers and strip clubs in Toronto is declining, with former dancers blaming the Internet for putting them out of work.
An economics lesson here in low barriers to entry, competition and contestable markets?
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Are Inflationary Concerns Inflated?
Submitted by CARPE DIEM
Inflation: Food
Inflation: Energy
Inflation: All Items Less Energy and Food
The charts above are from the St. Louis Federal Reserve, using CPI data from the BLS, and show the percent change from a year ago, from 2000 - 2008. Is it possible that inflationary fears are inflated? Consider that:
1. Food inflation fell [...]
Bad Auto Investments / Weight Inequality
Submitted by CARPE DIEM
From 4-Block World.
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The Stressful Effects of a Weak Economy: What’s a Business Manager to Do?
Submitted by Businomics Blog
The weak economy is causing stress for many workers. In the Businomics Audio Magazine, Dale Collie, a former Army ranger and corporate executive talks about how to deal with stress, including lessons from both his business experience and Vietnam service.
Dale’s website is Courage Builders.
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Fear, Investors, and Marketing
Submitted by A Dash of Insight
The most powerful selling approaches go with the flow.
Let us compare “selling” investment opinions with the positions of politicians seeking the Presidency. Both topics hit our sweet spot. We have also been talking with many individual investors and also many voters. It is interesting.
The Election
A reader who wants to understand [...]
Economics of College
Submitted by CARPE DIEM
In the first of a three-part series on the “Economics of College,” economist Thomas Sowell asks, “How many people would go to college if they had to pay the real cost of all the resources taken from other parts of the economy? Probably a lot fewer people.”
Part 1 here, Part 2 here [...]
$100 Int’l. Phone Call in 1973 Now Costs Only $1.60
Submitted by CARPE DIEM
ECONOMIST–The cost of a phone call abroad has dropped dramatically in the past three decades, thanks to market liberalization and advances in technology. A one-minute fixed-line call from America has fallen by 98.4% in real terms since 1973 (see chart above).
In other words, an international phone call that cost $100 in 1973 [...]
Russia’s New Consumer Nation: Wal-Mart Drools
Submitted by CARPE DIEM
BENTONVILLE, ARKANSAS/MSNBC - Wal-Mart is moving closer to a possible expansion into Russia with the appointment of an experienced European executive to scope out possibilities in a vast retail market worth more than $140 billion a year in food sales alone.
From a related Reuters article, Wal-Mart Chief Executive Lee Scott said at [...]
Every Sales Receipt in Russia Gets Ripped!
Submitted by CARPE DIEM
I’ve been to Russia now four times, and one of the most interesting and unusual retail practices in stores there is the Russian sales clerks’ habit of tearing almost every sales receipt before they hand it to you or set it down on the counter (see picture above).
Supposedly, this practice [...]
ABCDs in India
Submitted by CARPE DIEM
NPR: In this broadcast we talk to a bunch of American-born Indians and their local friends who discuss what it’s like to come “home” and what it’s like to be invaded by Americans who want to rediscover their “Indian-ness”. The locals have a nickname for these Americans —they call them “ABCDs.” That’s [...]
Free Trade
Submitted by CARPE DIEM
“Freer Trade Could Fill the World’s Rice Bowl,” by Tyler Cowen in The NY Times
“America Needs to Make a New Case for Trade,” by Lawrence Summers in The Financial Times
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LA Food Fight: Black Market Bacon Dogs
Submitted by CARPE DIEM
Amid the hustle and bustle of downtown Los Angeles, there exists another world, an underground world of illicit trade in—not drugs or sex—but bacon-wrapped hot dogs. Street vendors may sell you an illegal bacon dog, but hardly anyone will talk about it, for fear of being hassled, shut down or worse. Reason.tv’s [...]
Quote of the Day: Government Doesn’t Make Gas
Submitted by CARPE DIEM
The government takes over 40 cents a gallon in taxes for gasoline, far more than the profit per gallon made by oil refiners like Exxon. And the government doesn’t make any gas for you.
~Temple University Economics Professor Bill Dunkleberg
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New Cars Today: More Options At Lower Prices
Submitted by CARPE DIEM
What is remarkable and amazing is that as “car options considered to be essential to car shoppers” have increased significantly between 1985 and 2007 (see chart above), new car prices have: a) increased much less than the general price level during that period, b) been relatively flat since about 1993, and c) [...]
