Archive for January, 2009

There is nothing unexpected in the news released this morning that the economy, as measured in GDP, sank at an alarming rate in the fourth quarter last year. Here is the government press release: BEA: News Release: Gross Domestic Product
I apologize on behalf of the government for that appalling presentation!
Nonetheless: the… »

Well the campaign for bank nationalization seems to have hit a wall. The current and best rumors in Washington now are that the Obama Administration favors setting up a ‘Bad Bank” to deal with our banking woes. My quick response: bad idea!
A bad bank is an organization set up for the specific purpose… »

This morning’s news is really not news at all. It is all merely confirmation of what we already know: things are rotten.
First here’s the press release on claims for unemployment insurance:News Release This data shows that the jobless claims are now at an historic high. Unemployment lines are growing, and… »

My earlier post on the fractious nature of professional economics turns out to have been an understatement. It’s a lot worse than I thought. There are groups out there who positively hate each other.
An excellent statement of the state of play is here[warning: this is from an insider within the profession, so it… »

One of the great victims of our current economic malaise is the economics profession itself. The infighting and bickering between our foremost economists over what to do about the crisis is a shameful reminder to all of us that economic theory is a fledgling not a fully grown phenomenon. For those of you… »

There is nothing much to add to this bad news:
Bellwether Caterpillar among those shedding workers

The key thing to remember is that unemployment tends to lag, rather than lead, the economic cycle. That is because the economy has already gone over the cliff before employers start to cut their workforces. So looking… »

The New York Times has an editorial about the state of our 401(k) plans: Editorial – From Here to Retirement – and the issues that are now arising as a whole cohort of workers approach retirement just as their primary saving vehicle has been destroyed.
The issues are worth delving into at length,… »