Overall construction spending increased in March, with a boost from public spending, however private construction spending – both residential and non-residential – declined in March. From the Census Bureau: March 2010 Construction at $847.3 Billion Annual Rate The U.S. Census Bureau of the Department of Commerce announced today that construction spending during March 2010 was estimated at a seasonally adjusted annual rate of $847.3billion, 0.2 percent (±1.3%)* above the revised February estimate of $845.5 billion
PMI at 60.4% in April, up from 59.6% in March. Any reading above 50 shows expansion. From the Institute for Supply Management: April 2010 Manufacturing ISM Report On Business® Economic activity in the manufacturing sector expanded in April for the ninth consecutive month, and the overall economy grew for the 12th consecutive month, say the nation’s supply executives in the latest Manufacturing ISM Report On Business®
Philip Babcock and Mindy Marks write , We find a 10 hour decline in the average weekly study time of full-time college students at four-year colleges in the United States, from about 24 hours per week in 1961 to about 14 hours per week in 2003. I assume that this is an earlier version of this paper . What sort of model can reconcile this with secular increases in college attendance and the college wage premium
I have never really understood the idea that the Greek fiscal crisis is “a threat to the euro” but have generally sensed the tide running against me on this one as serious people warn darkly about the wider repercussions of a Greek default. Still, I find the arguments in this new CEPR Policy Insight paper from Jacques Melitz (“Eurozone Reform: A Proposal”) to be pretty convincing
The government is not a wealth generator — it is completely at the mercy of the wealth generators in the private sector. This, of course, means that the US government must drastically cut its expenditures to prevent a serious economic disaster.
The BEA released Q1 data on Friday, and here is the March data from the BEA: Personal Income and Outlays, March 2010 Personal income increased $36.0 billion … Personal consumption expenditures (PCE) increased $58.6 billion, or 0.6 percent
Nassim Taleb, author of The Black Swan and Fooled by Randomness, talks with EconTalk host Russ Roberts about his latest thoughts on robustness, fragility, debt, insurance, uncertainty, exercise, moral hazard, knowledge, and the challenges of fame and fortune.
Swire Properties Ltd., landlord to Time Warner Inc. and Societe Generale in Hong Kong, seeks to raise as much as HK$20.8 billion ($2.7 billion) in what would be the city’s largest initial public offering since 2007.
James Galbraith, economist and Lloyd M. Bentsen Jr. Chair in Government/Business Relations at the University of Texas, says Germany has played “a game of extreme brinkmanship that pushed the euro zone to the edge of panic.” Germany needs to take responsibility for destabilizing the EU , according to Galbraith, who contends the US used to be flawed liked the EU until the New Deal, leading to government investment in the American South on a massive scale, which brought the south up to standard.
Last night I posted some excerpts from the just released 2004 FOMC transcripts showing there was some concern about a housing bubble in June 2004. A key graph, presented by Fed associate research director Stephen Oliner, showed the rent-to-price ratio through Q1 2004.
Last week the New York Times blog had a post referencing an article on Adam Smith by Amartya Sen. Those of Sen’s thoughts that sounded correct were not news and those that sounded like news were ones that I wasn’t sure were correct. So I contacted Smith afficionado Dan Klein of George Mason University.
By Claus Vistesen: Copenhagen Edward does a nice job to sum up the flurry of the past week which saw the ongoing problems in Greece elevated to a full fledged systemic crisis in the Eurozone economy which, if it ultimately blows, will have ramnifications far beyond the borders of the European continent. Being a firm believer in the notion of markets as conversation it is funny to see that although Lehmann Brothers is dead and buried, people are talking an awful lot about it.
From the NY Times: Greece Reaches Agreement on Bailout Prime Minister George Papandreou said Sunday that Greece had reached an agreement with the International Monetary Fund and European Union on a long-delayed rescue package that is expected to be as much as €120 billion. ..
Yesterday, President Obama said , When our government is spoken of as some menacing, threatening foreign entity, it ignores the fact that in our democracy, government is us. We, the people — (applause.) We, the people, hold in our hands the power to choose our leaders and change our laws, and shape our own destiny. Government is not “us.” Government is a relatively small handful of people with far too much power
by Edward Hugh: Barcelona According to a once famous statement by the British Prime Minister Harold Wilson, a week is often a long time in politics. But when it comes to financial market crises we seem to follow a pattern more reminiscent of a line from the Dinah Washington version of an old María Méndez Grever song: “What a difference a day made”. The day in this case was last Wednesday, at least for those of us here in Spain, since it was on Wednesday that the ratings agency Standard & Poor’s downgraded Spanish Sovereign debt to AA from AA+
By request, the following graph is an update to: The Investment Slump in Q2 2009 The following graph shows the rolling 4 quarter contribution to GDP from residential investment, equipment and software, and nonresidential structures. This is important to follow because residential investment tends to lead the economy, equipment and software is generally coincident, and nonresidential structure investment trails the economy. For the following graph, red is residential, green is equipment and software, and blue is investment in non-residential structures.
Note: Freddie Mac reported the serious delinquency rate decreased in March from February, but that is only after the previous months were revised higher. Also there might be some distortion from the modification program – loans in trial mods were considered delinquent until the modifications were made permanent
From Nick Timiraos at the WSJ: U.S. Role in Mortgage Market Grows Even Larger Government-related entities backed 96.5% of all home loans during the first quarter, up from 90% in 2009, according to Inside Mortgage Finance. The following graph from San Francisco Fed Senior Economist John Krainer puts this in perspective (from Oct 2009): Recent Developments in Mortgage Finance As the U.S
This is an unofficial list of Problem Banks compiled only from public sources. Here is the unofficial problem bank list for April 30, 2010. Changes and comments from surferdude808: Failure Friday and the FDIC issuing its enforcement actions for March contributed to many changes in the Unofficial Problem Bank List
Wide open frontier A limitless horizon Much like our debt load. by Soylent Green is People From the FDIC: Union Bank, National Association, San Francisco, California, Assumes All of the Deposits of Frontier Bank, Everett, Washington Frontier Bank, Everett, Washington, was closed today by the Washington Department of Financial Institutions, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. ..
Butler bank failure Deposits gone with the wind I don’t give a damn by Soylent Green is People From the FDIC: Community First Bank, Butler, Missouri, Assumes All of the Deposits of BC National Banks, Butler, Missouri BC National Banks, Butler, Missouri, was closed today by the Office of the Comptroller of the Currency, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver.
Leafy green money The breakfast of Champion They drank our milk shake by Soylent Green is People From the FDIC: Bankliberty, Liberty, Missouri, Assumes All of the Deposits of Champion Bank, Creve Coeur, Missouri Champion Bank, Creve Coeur, Missouri, was closed today by the Missouri Division of Finance, which appointed the Federal Deposit Insurance Corporation (FDIC) as receiver. … As of December 31, 2009, Champion Bank had approximately $187.3 million in total assets and $153.8 million in total deposits….
Christopher Kimball, the editor of Cook’s Illustrated tweeted this morning, “Why Does Canned Beef Broth Taste Like Water? USDA only requires ONE part beef to 135 parts water!” Not believing everything I read on Twitter, I pulled out the USDA’s Food Standards and Labeling Policy Book — and sure enough, Kimball was telling the truth: BROTH, BEEF OR PORK : No distinction has been made between “broth” and “stock.” They may be used interchangeably as the resulting liquid from simmering meat and/or bones in water with seasonings
When we try to engineer communities, the results are disastrous. Community is destroyed by top-down processes precisely because top-down processes are simplifying, unnatural, and create disorder. FULL ARTICLE by Troy Camplin Join the discussion and post a comment Related posts: Forums pass 4000 mark Coders/DBA’s: join MisesDev to improve Mises.org If Men Were Angels
Doug French on Mises, Rothbard and the Advancement of Free-Markets with Scott Smith and the Daily Bell Introduction : Douglas French is president of the Mises Institute and author of Early Speculative Bubbles & Increases in the Money Supply. He received his Masters degree in economics from the University of Nevada, Las Vegas, under Murray Rothbard with Professor Hans-Hermann Hoppe serving on his thesis committee.
