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Tag Archives: Economy

Richard Florida Has the Relationship Between Home Ownership and Growth All Wrong

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In a column intended to attract readers, not to promote hard economics, Rotman University economist Richard Florida declares that home ownership is terrible for the US Economy. The problem is, like many economists, Florida’s understanding of home ownership is 180 degrees ass-backwards.  Florida thinks that home ownership is supposed to cause economic growth. Instead of leading to economic development, higher rates of homeownership today are associated with lower levels of it. No, professor.  Home ownership

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NYT Describes Mayhem of “Taxmageddon”, And It Will Scare You Sick

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What the hell’s going on at NYT? First, they do a piece on Andrew Breitbart. Then they warn the world that Taxmageddon will crush the world in 2013, beginning with the USA. Here’s how Business Insider summarized the David Leohardt article: Basically, with no changes to current law, taxes will rise for everyone, and after tax, inflation-adjusted income for the average American will drop to 1998 levels. Read more: http://www.businessinsider.com/nyt-here-comes-taxmageddon-2012-4#ixzz1s9RHtbZC It’s largest tax increase in

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Ideas Have Consequences—Even Stupid Ones

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When Barack Obama became president in January 2009, he began a campaign to weaken America. I’m not talking about military cuts; I’m speaking of America’s stature.  Barack Obama famously refused to acknowledge American Exceptionalism in 2009. He bowed to kings and princes, then denied doing so, then bowed again and again. His White House has driven down the dollar. Timothy Geithner, Obama’s Secretary of the Treasury, warns that the world economy must “rebalance” with less

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3 Signs of Economic Disaster

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Each day, more economists jump onto the Double-Dip bandwagon. Signs abound that the natural economic recovery that would normally follow a deep recession won’t happen. Instead, the economy is now saddled with so much debt, so many regulations, and such onerous new taxes that the Obama Administration tells us to be happy with 9.5 percent unemployment. Barack Obama is an economic disaster of the first order. So why all the pessimism?  Well, every week it

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2/3 Think Worst Is Yet to Come for USA

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The Wall Street Journal headline is grim: Grim Voter Mood Turns Grimmer Underpinning the gloom: Nearly two-thirds of Americans believe the economy has yet to hit bottom, a sharply higher percentage than the 53% who felt that way in January. Wow.  I think the barrage of terrible economic news this week has people realizing that you can’t borrow your way out of a debt problem. So far this fiscal year, the US has paid more

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Fed: Other Shoe About to Drop

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The only two people in the world who believe the economy is healthy and vibrant are Barack Obama and Joe Biden.  Now, the Federal Reserve Board’s Open Market Committee (FOMC) is getting ready to announce that the economy is sicker than we thought. Although Fed policymakers still believe the basic trajectory of the economy remains one of moderate expansion, there may be more attention given to heightened dangers of a sharp slowdown. “The FOMC will

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Don’t Blink (you’ll miss the recovery)

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The stock market reacted mildly to some devastating economic news today.  In fact, the stock market appears to be in denial about the state of America’s economy.  Existing home sales fell in May.  As of this morning, economists expected a six percent increase.  Economists expect new home sales to be worse than existing home sales. And economists expected home sales to fall off the table in July and for the remainder of 2010. But the

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8,000 Dow? *UPDATE*

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So says Yale economist Nouriel Roubini in an interview today on CNBC. “There are some parts of the global economy that are now at the risk of a double-dip recession,” said Roubini, head of Roubini Global Economics. “From here on I see things getting worse.” Roubini’s comments came in response to a 376 point drop in the Dow Industrials. Nasdaq and S&P 500 were off significantly as well.  All three indices are at or near

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Debt Crisis: Greece, Portugal, Spain . . . ?

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WSJ.com Alert: S&P downgrades Spain to ‘AA’ with a negative outlook, saying the country is likely to have an extended period of subdued economic growth. Markets react:  DJIA plummets from +23 to –22 in seconds after S&P drops Spain’s debt rating. And the sovereign debt nightmare is only beginning.  The UK is next.  But the USA borrows more money faster than anyone, and Socio-History blog ain’t happy: As I pointed out yesterday, US debt threatens

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