Monthly Archives: March 2014
Message to the Fed: Here Are a Few Things That You Can’t Do
[A]sset purchases are not on a preset course, and the Committee’s decisions about their pace will remain contingent on the Committee’s outlook for the labor market and inflation as well as its assessment of the likely efficacy and costs of … Continue reading
Posted in Uncategorized
Tagged business fixed investment, capital expenditures, corporate cash, credit market liabilities, disposable personal income, financial obligation ratio, FOMC statement, household debt service, household financial obligations, housing boom, job creation, monetary intervention, mortgage demand, mortgage rate spread, net business debt, personal income, wealth effects
Comments Off on Message to the Fed: Here Are a Few Things That You Can’t Do
Did Today’s Flow of Funds Report Predict the Fed’s Next Confession?
In return for speaking fees reported to be “at least” $250,000, Ben Bernanke confessed a few of the Fed’s missteps while speaking to guests of the National Bank of Abu Dhabi on Tuesday: “Bernanke says he underestimated impact of subprime … Continue reading
Posted in Uncategorized
Tagged Ben Bernanke, flow of funds report, FOMC, household balance sheet, Internet bubble, National Bank of Abu Dhabi, portfolio balance channel, S&P 500 valuation
Comments Off on Did Today’s Flow of Funds Report Predict the Fed’s Next Confession?
What Needs to Happen Before We See a Big Recovery?
In a Bloomberg article last May, Caroline Baum summed up the economy nicely in a single question: Four-and-a-half years of an overnight rate near zero and aggressive securities purchases by the Fed have succeeded in raising asset prices. The question … Continue reading
Posted in Uncategorized
Tagged Arnold Kling, breadwinner jobs, bubble finance, Caroline Baum, creative destruction, household savings rate, Joseph Schumpeter, private domestic demand, PSST theory, real disposable income
Comments Off on What Needs to Happen Before We See a Big Recovery?
Preparing for Obama’s 2015 Budget with a Chart and a Toy
The goal that was identified by Simpson-Bowles was to reduce the deficit as a percentage of GDP to below 3%, but what our budget projection shows is that over the course of the next ten years (or in ten years) … Continue reading
Posted in Uncategorized
Tagged CBO, CBO budget outlook, Congressional Budget Office, Josh Earnest, national debt, Obama 2015 budget proposal, President Obama, Simpson-Bowles
Comments Off on Preparing for Obama’s 2015 Budget with a Chart and a Toy
