I’m confident the past couple years will be discussed and dissected by economics students for decades to come. Here’s just two graphs visualizing the monetary movement that have made my jaw drop: In both of them, there’s little to no movement for 5 years. Then…WHAM! It doesn’t really matter what these graphs measuring – the …
Category Archives: Economics
Introducing the Minnesota Pineapple Economic Indicator
It’s March in Minneapolis. The thermometer just broke 40°F and there’s still inches of snow cover. Winter sustenance in the upper Midwest traditionally comes in two forms: canned or hotdish. Not the most uplifting and exciting dishes to get families through long, grueling winters, but economical. Citrus fruits were a rarity, rare enough for oranges …
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“My Baby’s Only Known Recession”
Mark Zandi, author of the Financial Shock, the best book on how we got into this economic mess is now covering the proposals to get us out. Quick context setting: “Every dollar decline in household net worth reduces consumer spending by 5 cents over the next two years. If sustained, the wealth lost over the …
A popular Democrat becomes President during one of the worst economic downturns
I’m reading The Forgotten Man: A New History of the Great Depression. While parallels with pre-1950s America are always tenuious, here’s a synopsis A popular Democrat becomes President during one of the worst economic downturns in our nation’s history. He drives through some of the most dramatic legislation ever seen and creating departments compensating farmers …
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I Think We Got All 4
Remember, a few months ago when crude oil was at it’s highest (Unleaded hit >$4 in my neighborhood) and natural gas was spiking as well? Considering both are falling (Unleaded is currently $1.85 in my neighborhood), both are sold in US Dollars on the world market, and the US Dollar is trading at it’s highest …
Financial Shock: The Bad Decisions that Got Us Here
Financial Shock A 360º Look at the Subprime Mortgage Implosion, and How to Avoid the Next Financial Crisis is an amazing read. Amazing for 2 reasons: It was published in early 2008 and is covering – in-depth – the issues the news media is just now picking up on – e.g. the Fed nearly bailed …
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McCain & Obama Tax Plans: Small Change
Viveka Weiley redrew Washington Post’s chart of Obama’s and McCain’s respective tax plans. First off, a caveat: Basing a vote on potential personal financial changes is as one-sided as basing a vote on gender, skin pigment, or hair color. It’s one factor and one that I hope to argue it is a wash to vast …
I Bet It’s Self-Fulfilling
Back in May, Barry Ritholtz bet James Pethokoukis that we are in a recession. From my view and the numbers I’ve seen, the downturn is concentrated in the housing sector. A good thing. Unfortunately, housing is a huge percentage of our overall GDP and it completely collapsed. Reminds me of early 2001, when the tech …
RE: Starbucks Might Be Helping, Not Hurting, Independent Coffee Shops
“‘Anyone who complains about having a Starbucks put in next to you is crazy. You want to welcome the manager, give them flowers. It should be the best news that any local coffeehouse ever had.’” – Martin Diedrich, coffeehouse owner in Orange County, CA. Competition increases demand and you can succeed by outsourcing your marketing …
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Drive Vague
There’s something appealing about removing complexity – and the costs to maintain that complexity – to more effectively improve the behavior of a complex system. “The assumption is that drivers are accustomed to owning the road and rarely pay attention to speed limits or caution signs anyway. Removing traffic lights and erasing lane markers, the …