R.I.P. bond bull market, 1981-2016 On September 30, 1981, the 10 year US Treasury bond yielded 15.84%. It has not been that high since. On July 8, 2016, it fetched only 1.37%. It is unlikely to see that low rate again for a very, very long time. Those two dates likely mark the birth and death dates for perhaps the biggest bond bull market in history. Here (from CNBC) is the relevant graph: Today the 10 year closed at 3.067%, having hit an...
Read More »ZTE and the Iran Nuclear Deal
ZTE and the Iran Nuclear Deal The whiplash that many observers have felt on learning of President Trump’s about-face on China’s ZTE telecom company from condemning it as violating US national security and violating sanctions rules by selling to North Korea and Iran has been pretty easily explained by our soon thereafter learning that China has provided a mere half a billion dollars to a project in Indonesia where Trump interests are deeply involved. ...
Read More »Michigan Medicaid Waiver
The State of Michigan Legislature is applying for an ACA Waiver as I pointed out in my post Why States Should Not Be Allowed to Alter the ACA with Waviers This is a relief valve for “counties” with high unemployment. In effect if Michigan counties have a high unemployment rate (8.5% or above), the unemployed workers in that county can have Medicaid until such time as the Unemployment Rate drops to 5%. Then the workers are expected to seek employment to...
Read More »Intelligent Economist names Angry Bear among the top 100 Economics blogs for 2018
Angry Bear made the list again on the Intelligent Economist list of top blogs. We are listed in the general category seventh from the top. I see some new names on the list. Congratulations to all contributors for making a fine publication. The Angry Bear is a multi-author blog. Each author has his or her own unique area of expertise. Authors include a tax law expert, historian, numerous economists, and business and financial professionals. The varying...
Read More »Real wage growth adjusted for gas prices
Real wage growth adjusted for gas prices One of the things I note from time to time in my discussions of wage growth is how much its fluctuation in real terms has been affected by gas prices. For example, in the middle of the worst recession in nearly 70 years, real wages actually went up! Why? Because gas prices fell from $4.25/gallon to $1.50/gallon in just a few months. So, what would a long term view of real wages look like if I took out the...
Read More »Since 2010, Minnesota’s economy has performed far better for working families than Wisconsin’s
(Dan here…unemployment rates were about the same at 3.1 per cent (M) and 3.0 per cent (W). Taking a look at other measures of the success of an economy for the average person is well displayed here) Via Eeconomic Policy Institute comes this study: Since 2010, Minnesota’s economy has performed far better for working families than Wisconsin’s… At the time of the November 2010 elections, most states were still reeling from the economic devastation caused...
Read More »Open thread May 15, 2018
Republican Short Term Healthcare Plans
[embedded content] Having talked about the proposed state High Risk Pools and why they are bad; Charles Gaba at ACASignups.net turns his attention to the proposed Short Term Plans and why they are also bad. Keep in mind the proposed Short Term Plans are not the same as the ACA Catastrophic plans. Most of the protection found in the ACA plans are not in the proposed short term plans. This would include insurability, rates, pre-exiting conditions,...
Read More »Comment on CEPR Policy Insight 91 section 4.2.1
Sorry for the title which is pure click bait. I would like to discuss a reform of the Stability and Growth Pact proposed by Agnès Bénassy-Quéré Markus Brunnermeier, Henrik Enderlein, Emmanuel Farhi, Marcel Fratzscher, Clemens Fuest, Pierre-Olivier Gourinchas, Philippe Martin, Jean Pisani-Ferry, Hélène Rey, Isabel Schnabel, Nicolas Véron, Beatrice Weder di Mauro, and Jeromin Zettelmeyer in CEPR Policy Insight 91 “Reconciling risk sharing with...
Read More »CHIPS Funding
CBO Director Keith Hall responded to a request from House Majority Leader Kevin McCarthy to project the impact of the $7 billion CHIP rescission package. The CBO letter estimates that the rescission “would not affect outlays, or the number of individuals with insurance coverage.” Well this is good news, I guess? Except, the key here is this is based upon the present number of children enrolled in CHIPS. However, “In its estimates, CBO doesn’t (and can’t)...
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