Archive for May, 2010

Consumer Spending Is Overrated

One more advocate of setting the record straight on consumer spending. Don Marron takes up the crusade that Michael Mandel started to accurately portray the contribution that consumer spending makes to GDP. Journalists, commentators, and economists often say that consumer spending makes up 70% of the U.S. economy. Indeed, it’s easy to find several examples [...]

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UAW Looks Towards Clawbacks

I suppose this was to be expected, but that doesn’t make it any less disappointing. The WSJ reports that Ron Gettelfinger, the outgoing President of the UAW, said today that he expects that the resurrection of Chrysler and GM will prompt the union to bargain to claw back some of the concessions they made to [...]

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Moving On From Fixed Rate Mortgages

Arnold Kling has some interesting thoughts on 30-year fixed-rate mortgages today. 1. The U.S. is the only country with the 30-year fixed-rate mortgage. Other countries get along fine without it. 2. The core of my argument against the thirty-year fixed-rate mortgage is that without government intervention I believe that more borrowers would prefer mortgages where [...]

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Playing With Numbers Congressional Style

Today’s lesson on how Congress goes about the nation’s business comes from Keith Hennessey: House Democrats have modified their “extenders” bill and appear to be bringing it to the floor for a vote today.  Monday’s version would have increased the deficit by $134 B over the next decade.  Today’s version would increase the deficit by $84 B [...]

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A Little Late Night Humor

The hat tip for this one goes to Credit Writedowns. It’s pretty clever.

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Ron Paul Wants To Resurrect The Homebuyer Tax Credit

Monday I wrote a post on the existing home sales report and said I was going to go out on a limb and suggest that Tax Credit lll might come about if the housing market did start to tank. Looks like it wasn’t all that dangerous a limb to climb out on. Ron Paul’s Congressional [...]

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New Home Sales Reflecting The Tax Credit Effect?

As you probably know, the Census Bureau reported that new home sales were up smartly in April. They surged 14.1% over the March number and were up 47.8% over April 2009. Conventional wisdom says that it’s a blip caused by the expiration of the tax credit. Supporting this view is the news from the MBA [...]

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