Robert Waldmann Andrew Harless argues that there was no housing bubble ?!? Apparently it is now generally accepted that the rise in house prices was an aberrant bubble, justified only in the minds of irrational buyers who ignored the fundamentals and expected house prices to keep rising simply because they were already rising. But what were the fundamentals?
Transunion reports: TransUnion’s quarterly analysis of trends in the credit card industry revealed that the national credit card delinquency rate (the ratio of bankcard borrowers 90 days or more delinquent on one or more of their credit cards) decreased to 0.92 percent in the second quarter of 2010, down 17.1 percent over the previous quarter. Year over year, credit card delinquencies fell by 21.3 percent.
by Linda Beale crossposted with Ataxingmatter Dealing with the Sunset of the Bush Tax Cuts (Part IV in a series)–the Tax Relief Coalition The Tax Relief Coalition–another of the myriad anti-tax groups comprised of Grover Norquist’s group and those of similar ideology–is at it again with a letter to Congress (available on BNA) urging the passage of new legislation to pass tax cuts to extend the temporary cuts enacted under the Bush administration. The group is spending millions lobby for its interests with the dubious claim that discontinuing tax cuts for the wealthiest Americans will hit small businesses the hardest.
I have no words for this e-mail to OWL by Alan Simpson on Social Security : I’ve made some plenty smart cracks about people on Social Security who milk it to the last degree. You know ‘em too. It’s the same with any system in America
Robert Waldmann Minneapolis Fed President and famous economist Narayan Kocherlakota made my jaw drop with this argument Long-run monetary neutrality is an uncontroversial, simple, but nonetheless profound proposition.
by reader Ilsm Misspent Tax Dollars for Profits, Not Replacing 1970’s Military Equipment US outlays for military programs are wasted through mismanagement and neglect: these must not be spared in spending cuts. 20% of US government outlays are for the Defense Department.
Lifted from an e-mail from Dale Coberly regarding Social Security and the dangers of increasing ‘costs’ of helping our old folk live a bit above a level of destitution: …that while SS will eventually cost 6% of GDP, this is not a lot of money for the basic needs of 25% of the population. Moreover, they will have paid for it themselves. And that is what it is going to cost “us” in any case, however the money is arranged..
by Linda Beale crossposted with Ataxingmatter Dealing with the Sunset of the Bush Tax Cuts (Part III in a series)–considering the ill-advisedness of favoring capital income During the Bush administration a number of significant reductions in revenue were enacted, especially in the 2001 and 2003 tax bills, but with a sunsetting provision that (extended in some cases) generally will mean that the pre-existing provision will be reinstated after 2010. Both individual and corporate taxes were reduced. Many of the corporate and business provisions involved accelerated expensing provisions, allowing businesses to write off purchases much faster than the economic depreciation of the asset would require and thus amount to a significant tax reduction for businesses
by Tom aka Rusty Rustbelt HEALTH CARE: Resident Rights versus Caregiver Rights In 1987 the federal government passed a comprehensive “bill of rights” for nursing home patients. Most states followed. The law gives nursing home residents wide protection, including (when mentally able) the ability to refuse care, meals and just about anything else they please.
Earlier this week I compared household saving rates across the US, UK, Canada, and Germany. My conclusion was pretty simple: So generally, this simple analysis would suggest that Menzie Chinn’s skepticism of a “status quo ” of US consumer imports is worthy