The Angry Bear

Corporate Bond Spreads and the Pandemic The St. Louis FED has an economics blog: The ongoing COVID-19 pandemic has caused significant disruption in economic activity across the globe. Financial markets, in particular, have experienced surges in volatility that had not been seen since the 2007-09 financial crisis … The figure below plots the median value for our measure of credit spreads (the difference between a corporate bond’s yield and a benchmark...

I have repeatedly argued that, based on in vitro evidence, hydroxychloroquine should be prescribed while we wait for the results of clinical trials. Such results were just published. They are very disappointing. The link is to an LA Times Article: latimes.com 2020-04-17 malaria-drugs-fails-to-help-coronavirus-patients-in-controlled-studies On the other handEarly peek at data on Gilead coronavirus drug suggests patients are responding to treatment The...

March housing, latest weekly jobless claims slightly less apocalyptic than expected If I were President, the one industry in the economy that I would be actively trying to prop up is housing. As I have repeated constantly over the past 10+ years, housing is a long leading indicator. The permit that is issued today means a house that is built over the next 4 to 12 months, means contractors being employed, mortgages being issued, and furnishings,...

Jason Brennan has a new post up doubling down on his earlier criticism of epidemiologists and government policy in response to the COVID crisis.  I responded to his earlier blog posts here.  I am still not convinced, but there are useful lessons to be learned from going through his argument. Brennan continues to claim that epidemiologists produced bad statistical analysis, and that we should not take their advice seriously (all bolding is mine): I’ve been...

[embedded content]James Smith protesting the protestors who are practicing unsafe methods of protest. They congregate in close proximity to others, failed to wear facemasks, threatened those people who were involved in the protest, and by their actions purposely prevented people and healthcare workers from having access to Sparrrow hospital in Lansing, Michigan. Their right to protest shall not impede upon the rights of others to safety....

Will all those who lost their jobs and their health insurance, be asked to pick up the tab?

World Chess Championship Ends The two best chess players in the world faced off this month, undeterred by lockdowns, travel bans or any other restrictions.  They never had to see each other either. It helped that they were both computer programs.  The former champ, Stockfish, is the strongest of the traditional type of program, designed by humans and invested with all the fine points of judgment the best human players can translate into code.  Because...

Coronavirus dashboard for April 16: if new infections have passed peak, what pace of decline can we expect? Here is the update through yesterday (April 15). Significant new items are in italics In the US, the only significant development yesterday was that deaths rose to yet another new daily high, while infections continued to be below last week’s peak. Since I want to look ahead, now that lockdowns appear to have worked and the number of new daily...

What lessons should we draw about the role of government from the COVID-19 epidemic?  I want to address this question in a few posts.  I’m going to start by examining a blog post by the libertarian philosopher Jason Brennan.  Brennan makes the following claims: Many medical journals published misleading papers based on bad statistical analysis and incomplete data; in particular the case fatality rate may have been overestimated because the total number of...