Markets

The Reason Why We Don’t Eat Horse Meat Is Purely Economical

[credit provider=”Flickr/Ctwirler12″ url=”http://www.flickr.com/photos/[email protected]/440394290/”] Why do we have such an aversion to horse meat?The discovery of traces of horse meat in food products supposedly made of beef or pork has caused a scandal in Britain and, most recently, prompted Ikea to withdraw its Swedish meatballs from stores in 21 European countries.
The Reason Why We Don’t Eat Horse Meat Is Purely Economical
Markets

Why The labour Supply Curve Now Bends Backward For Men

For instance, on the planet Earth, man had always assumed that he was more intelligent than dolphins because he had achieved so much—the wheel, New York, wars and so on—whilst all the dolphins had ever done was muck about in the water having a good time. But conversely, the dolphins […]
Why The labour Supply Curve Now Bends Backward For Men
Strategy

How To Use behavioural Economics To Lose Weight

[credit provider=”flickr/poptech” url=”http://www.flickr.com/photos/poptech/6266901996/sizes/l/in/photostream/”] At the end of the day, business is all about incentives and thinking about the way people act.Understanding what motivates people is the basis for a huge field of research — behavioural economics — which can be applied to situations that extend well beyond the business world.
How To Use behavioural Economics To Lose Weight
News

CBO: One Of The Biggest Long Term Drivers Of The Deficit Is Already Improving

[credit provider=”AP”] Yesterday, we noted that the Congressional Budget Office was forecasting that many short-term drivers of the deficit were being taken care of through upcoming cuts and revenue increases. But, the CBO also reported that one of the most important long term drivers of the debt is becoming less of […]
CBO: One Of The Biggest Long Term Drivers Of The Deficit Is Already Improving
Strategy

Here Is What The Universities Of The Future Could Look Like

[credit provider=”Flickr/lsgcp” url=”http://www.flickr.com/photos/[email protected]/2217391916/”] We will see increasingly creative partnerships between for-profit entities and traditional universities, writes Linda Lorimer, Vice-President of Yale University.We often hear references to “the” future of the university. In fact, the WEF has a Global Agenda Council dedicated to the subject. But the members of our GAC identified early […]
Here Is What The Universities Of The Future Could Look Like
Strategy

Study Reveals That Economics Majors Are More Likely To Lie

When a friend sent me this paper the other day, I admit that I took a long hard look at myself and my economist friends. According to this study, economists, it seems, are worse than most when it comes to truth telling. This discovery was made by researchers Raúl López-Pérez […]
Study Reveals That Economics Majors Are More Likely To Lie
Markets

The Major Flaw At The Heart Of Macroeconomics

There’s been a lot of ink spilled in recent weeks over the problems (or lack thereof) in modern macroeconomics (see here and here).  I’ve expressed my opinion that the state of modern macro is moving in the right direction because there’s serious debate about the problems with the mainstream approaches […]
The Major Flaw At The Heart Of Macroeconomics
News

The New York Times Finally Admits Reaganomics Worked

[credit provider=”Wikipedia” url=”http://en.wikipedia.org/wiki/File:Reagan_photo_at_National_Portrait_Gallery_IMG_4449.JPG”] Here’s the heart of the big New York Times story on taxes:Most Americans in 2010 paid far less in total taxes — federal, state and local — than they would have paid 30 years ago.
The New York Times Finally Admits Reaganomics Worked
News

Why Austerity Economics Hurts Low-Wage Workers The Most

[credit provider=”Associated Press” url=”http://www.apimages.com/OneUp.aspx?st=k&kw=mc%20donalds&showact=results&sort=relevance&intv=None&sh=10&kwstyle=and&adte=1285787999&pagez=60&cfasstyle=AND&rids=a94eeb60dee0da11af9f0014c2589dfb&dbm=PY2002&page=1&xslt=1″] What does the drama in Washington over the “fiscal cliff” have to do with strikes and work stoppages among America’s lowest-paid workers at Walmart, McDonald’s, Burger King, and Domino’s Pizza?Everything.
Why Austerity Economics Hurts Low-Wage Workers The Most
News

The Bush Era Tax Cuts Didn’t Create The Wealth They Were Supposed To

[credit provider=”Wikimedia/Eric Draper” url=”http://commons.wikimedia.org/wiki/File:Bush_addresses_media_on_Israel-Lebanon_w_Cheney_Aug_14_2006.jpg”] The Republican Party has long promoted itself as the party of business.Republicans understand the needs of business, we are told, and if the country would leave the economy in their hands business would boom.
The Bush Era Tax Cuts Didn’t Create The Wealth They Were Supposed To
News

Why Inequality Is Rising Under President Obama

[credit provider=”Official White House Photo by Pete Souza”] The Washington Post’s White House economics reporter Zachary A. Goldfarb recently published two articles that show very different sides to President Barack Obama, but both sides share one remarkable thing in common: they present a President whose policies are actually driving America […]
Why Inequality Is Rising Under President Obama
News

Six Big Economic Ideas That Romney Could Be Planning On Putting In Place

[credit provider=”Gage Skidmore, Flickr” url=”http://www.flickr.com/photos/gageskidmore/6468746437/”] On economic policy, Mitt Romney makes his own decisions.The former Massachusetts governor and private equity executive considers the advice from his cadre of economics PhDs but ultimately charts his own course, according to the Romney campaign.
Six Big Economic Ideas That Romney Could Be Planning On Putting In Place
Markets

Morgan Stanley’s Guide To Every Major Economy And Stock Market In The World

[credit provider=”bluedharma / Flickr” url=”http://www.flickr.com/photos/bluedharma/89187774/”] Morgan Stanley’s Cross-Asset Strategy team just published its new Global Debates Playbook, wherein they ask each of their regional experts to summarize the hot economic topics in their coverage areas.The report considers how messy Europe can get, whether China is rebounding, how uncertainty will slam […]
Morgan Stanley’s Guide To Every Major Economy And Stock Market In The World
News

Keeping Capital Gains Taxes Low Actually Helps Growth

The left keeps banging away at the preferential tax treatment of capital gains income. And that may be good politics. But is it good economics? Here is Tino Sanandaji, explaining the meaning of the above chart from his must-read, must-follow blog:
Keeping Capital Gains Taxes Low Actually Helps Growth
News

I’m Voting For Mitt Romney, Even Though I Don’t Agree With Him

[credit provider=”Getty Images”] I consider myself an active Republican. I vote in elections, attend events for the party, and participate in rallies. However, it seems like every day I turn on the news to find another speech or quote that has me questioning why I’m even voting for Romney and […]
I’m Voting For Mitt Romney, Even Though I Don’t Agree With Him
Strategy

Business Leaders Of The Future Need A Totally New Value System

[credit provider=”Orin Zebest at www.flickr.com” url=”http://www.flickr.com/photos/orinrobertjohn/137305231/”] The events of the last decade have forever changed the global economy.The Long-Term Capital Management crisis, the Technology stock bubble, September 11, and the most recent economic crisis have brought a heightened awareness and prudence towards investing, and the consequences will invariably affect the […]
Business Leaders Of The Future Need A Totally New Value System
Markets

The ‘PERC Methodology’ Might Be The Cure For Today’s Global Economy

[credit provider=”Wikimedia Commons” url=”http://commons.wikimedia.org/wiki/File:Northwestern_Europe_at_Night.JPG”] A little over two years ago, I wrote an article for Business Insider explaining the difference between finance, economics, and my new discipline called Globalnomics. In that Insider article I explained that even though Globalnomics is actually superior to and mediates over the other two disciplines, Globalnomics […]
The ‘PERC Methodology’ Might Be The Cure For Today’s Global Economy
News

There Are Six Reasons America Is Suddenly Hyper-Partisan

[credit provider=”Fox News”] “Americans … values and basic beliefs are more polarised along partisan lines than at any point in the past 25 years.” (Pew Research)Pundits bemoan this polarization, and await a leader who’ll cut the Gordian knot of gridlock politics to deliver us to a bi-partisan nirvana. The pundits […]
There Are Six Reasons America Is Suddenly Hyper-Partisan
Markets

Here’s The maths That Won Two Economists The Nobel Prize, And Helped Us Better Understand How People Date

[credit provider=”See / WVU ” url=”http://www.csee.wvu.edu/~ksmani/courses/fa01/random/lecnotes/lecture5.pdf”] This year Alvin Roth and Lloyd Shapley are splitting the Nobel Prize for Economics, and it’s about time.Each has made a huge impact on both the theory and the real world practice of economics, and have saved thousands of lives in doing so. 
Here’s The maths That Won Two Economists The Nobel Prize, And Helped Us Better Understand How People Date
News

Obama’s Economic Policies Are Stuck In The 1960s

[credit provider=”Courtesy of barackobama.com”] Although the Obama-Biden campaign is arguing otherwise, Romney-Ryan are not proposing to dismantle America’s social insurance system.They want to mend and modernize the Welfare State, not rend it or end it. They want a safety net that is fiscally sustainable, one with incentives that are pro-family, […]
Obama’s Economic Policies Are Stuck In The 1960s
Markets

These 4 Economists Are Tipped To Win The Nobel Prize

[credit provider=”Flickr/Peter Krantz” url=”http://www.flickr.com/photos/pkz/2094760751/sizes/z/in/photostream/”] Each year, Thomson Reuters’ David Pendlebury uses the company’s Web of Knowledge research platform to predict Nobel winners in physics, chemistry, physiology/medicine and economics.Since 2002, he’s predicted 26 winners, and last year, every single winner was previously predicted, either in 2008 or 2010, according to Popular Science.
These 4 Economists Are Tipped To Win The Nobel Prize
Markets

There’s A List Ranking College Majors By Which Students Have The Most Sex — And Wall Streeters Do Pretty Well

[credit provider=”flickr/ultimateslug” url=”http://www.flickr.com/photos/ultimateslug/558920533/sizes/l/in/photostream/”] Studentbeans.com conducted a survey of college students, asking the number of sexual partners they’d had since the beginning of college (h/t Wall Street Oasis).The standard thing to do with that information is to compile it by school and watch the college rivalries unfold, but they went even […]
There’s A List Ranking College Majors By Which Students Have The Most Sex — And Wall Streeters Do Pretty Well
News

Obama’s Big Budget Deficits Could Mean A Big Tax Hike For The Middle Class

[credit provider=”AP”] President Obama doesn’t think Americans should fret about the exploding national debt.As he told talk show host David Letterman recently, “We don’t have to worry about it short term. Right now interest rates are low because people still consider the United States the safest and greatest country on […]
Obama’s Big Budget Deficits Could Mean A Big Tax Hike For The Middle Class
Strategy

Economics Majors Are The Most Promiscuous Of All College Students

[credit provider=”Daily Bail” url=”http://dailybail.com/home/reuters-special-report-whos-watching-out-for-conflict-of-int.html”] Economics students probably do it daily, according to UK site StudentBeans.com.The site asked 4,656 sexually active students from more than 100 universities across the UK.
Economics Majors Are The Most Promiscuous Of All College Students
Markets

The Biggest Tragedy In Economics

[credit provider=”US Air Force” url=”http://commons.wikimedia.org/wiki/File:Chalkboard_in_a_school_in_Afghanistan.jpg”] First of all, let’s be clear. The biggest tragedy in the economy is the 8.1% unemployment rate, and the rising number of people on food stamps.This post is about economics, the field of academics and policy that’s of far less significance than the economy.
The Biggest Tragedy In Economics
Markets

All Of The Good News In The World Is Coming Out From The US

[credit provider=”Dr. Ed’s Blog” url=”http://blog.yardeni.com/2012/08/global-economic-indicators.html”] If you are looking for better-than-expected global economic indicators, welcome home; they are mostly here in the US. Earlier this month, July reports for payroll employment, retail sales, and industrial production were all on the strong side, with all three rising to new cyclical highs. […]
All Of The Good News In The World Is Coming Out From The US
Markets

Ben Bernanke Will Channel Evel Knievel As He Jumps This Fiscal Cliff

[credit provider=”Dr. Ed’s Blog” url=”http://blog.yardeni.com/2012/08/the-fed-cliff.html”] Evel Knievel was an American daredevil, who attempted over 75 ramp-to-ramp motorcycle jumps between 1965 and 1980. In 1974, he failed in his attempt to jump across Snake River Canyon in a rocket. He survived, and died in 2007 of pulmonary disease. Fed Chairman Ben […]
Ben Bernanke Will Channel Evel Knievel As He Jumps This Fiscal Cliff
Markets

US Rail Traffic Is Still Expanding

[credit provider=”Wikimedia Commons” url=”http://en.wikipedia.org/wiki/File:BNSF_GE_Dash-9_C44-9W_Kennewick_-_Wishram_WA.jpg”] The AAR reported a 3.6% increase in intermodal traffic this week and a -2.1% decline in carloads.  This data has been remarkably consistent in recent weeks though it’s off slightly in the last few months.  The 10 week moving average has dipped just slightly to 5% […]
US Rail Traffic Is Still Expanding
Markets

The Markets Have Detached From Economic Realities

This morning my friend Tyler Durden posted a chart showing the Bloomberg Consumer Confidence index versus the S&P 500.  That poll, released this morning showed a continued drop in consumer comfort to -47.4 reading.  Consumer confidence and sentiment on most all measures remain mired at recessionary levels which has been reflected in […]
The Markets Have Detached From Economic Realities
Markets

Yardeni: 5 Top Stock Market Indicators Are Sending Conflicting Signals

[credit provider=”Dr. Ed’s Blog”] Let’s review some of the indicators that can be useful in assessing the near-term outlook for the stock market: (1) Rydex Asset Ratio is bearish. Yesterday, Don Hays, a savvy market pro and good friend, noted: “On the Psychology side, one of our very best indicators from […]
Yardeni: 5 Top Stock Market Indicators Are Sending Conflicting Signals
Markets

We’re Not In A Recession Now, But We Will Be Soon

There have been a few calls as of late (Hussman, ECRI, Shilling) stating that we are currently in the next recession.  Then there is everyone else.  While the “optimistic” outlook is always more enjoyable to listen to – the problem is that the current “no recession” view is primarily predicated on current quarter growth rates looked […]
We’re Not In A Recession Now, But We Will Be Soon
Markets

How Long Do We Have To Wait Before Wrong Is Just Wrong?

A good economist will always give you a prediction or a timeframe, but never both.   This applies to a great deal of people outside of economists and market pundits and I think it also has to do with the fact that asset managers generally garner more respect regarding predictions […]
How Long Do We Have To Wait Before Wrong Is Just Wrong?
News

OBAMA: Mitt Romney’s Economic Plan Is Nothing But ‘Trickle Down Snake Oil’

[credit provider=”Courtesy of CNN”] In the last round of a three-day campaign swing in Iowa, President Barack Obama slammed Mitt Romney’s tax plan as “trickle-down snake oil.””They have tried to sell this trickle-down snake oil before. It didn’t work then, it won’t work now,” Obama told a crowd of supporters in […]
OBAMA: Mitt Romney’s Economic Plan Is Nothing But ‘Trickle Down Snake Oil’
Markets

Investors Are Actually Much More Bullish Than Everyone Says

I have read several articles as of late discussing the excessive “bearishness” of investors, which from a contrarian point of view, is “bullish” for the stock market.  The general position is that investors are sobearish that they are now just hiding in bonds and stuffing cash into their mattresses, and let’s not forget stocking […]
Investors Are Actually Much More Bullish Than Everyone Says
Markets

YARDENI: Bill Gross Is Wrong, 7% Corporate Earnings Growth Is Sustainable

[credit provider=”Dr. Ed’s Blog” url=”http://blog.yardeni.com/2012/08/cult-of-equity.html”] In his August Investment Outlook posted on PIMCO’s website on July 31, Bill Gross declared that the “cult of equity is dying.” That’s a late call since the cult has been mostly dying after flourishing during the 1990s, as evidenced by the secular downtrend in valuation multiples […]
YARDENI: Bill Gross Is Wrong, 7% Corporate Earnings Growth Is Sustainable
Markets

Michigan Town Has Basically Outlawed Self-Reliance

[credit provider=”Nienetwiler, Wikimedia Commons” url=”http://commons.wikimedia.org/wiki/File:Appenzeller-Spitzhauben1_PSR.jpg”] I don’t get angry very often, but here’s something that managed to really push my buttons.Around America the same phenomena are occurring:  In some of the nation’s poorest towns, it’s becoming illegal to be resilient.
Michigan Town Has Basically Outlawed Self-Reliance
Markets

Oakland Is Borrowing $211 Million To Pay For Pensions

[credit provider=”Wikimedia Commons” url=”http://en.wikipedia.org/wiki/File:Oaklandatnight02192006.JPG”] Yesterday, San Bernardino became the third city since the end of June to file for bankruptcy. The largest of the filings was Stockton, California, who had to take out a $121 million loan to pay for pensions.Now, Oakland is looking to borrow $211 for its serious […]
Oakland Is Borrowing $211 Million To Pay For Pensions
Markets

16 Awesome Charts On The Olympics From Goldman Sachs

[credit provider=”(Photo by David Bebber – WPA Pool/Getty Images)”] The London Olympics are just over 2 weeks away.At this point many fan are already  wondering about the medal tallies. While others ware wondering about the economic impact of this colossal sporting event.
16 Awesome Charts On The Olympics From Goldman Sachs
Markets

China’s Shadow Banking Risks Are Spreading Through The Financial System

[credit provider=”Andrey Belenko on www.flickr.com” url=”http://www.flickr.com/photos/belenko/4250613377/”] Wenzhou of Zhejiang province is one of the most, if not the most, entrepreneurial places in China. It also happens to be the place where many of the shadow banking mess in China is concentrated in.  We have mentioned loan sharks, trusts, and mutual […]
China’s Shadow Banking Risks Are Spreading Through The Financial System
Markets

The Greatest Economic Collapses In History

War and politics have been the focal point of the downfall of many dominant nations over the course of world history, but poor economic decisions have also led to countries falling, people dying from hunger, and revolutions changing the course of world history.
The Greatest Economic Collapses In History
News

Science, Evolutionary Biology, And Simple Economics Say Bloomberg’s Soda Ban Makes Sense

[credit provider=”Flickr/Ed Yourdon” url=”http://www.flickr.com/photos/yourdon/3855923910/sizes/z/in/photostream/”] A few weeks ago, I wrote about the political economy of the obesity epidemic.  Here, from a great oped in yesterday’s NYT, is the evolutionary science behind both the problem and the solution.Here’s the argument (though I strongly urge you to read the extremely well-crafted piece):
Science, Evolutionary Biology, And Simple Economics Say Bloomberg’s Soda Ban Makes Sense
Strategy

Here’s What Economics, Dating And Recruiting All Have In Common

[credit provider=”FastLife.ca via Flickr” url=”http://www.flickr.com/photos/[email protected]/3059068355//”] For leaders of businesses, cities, and countries who want to understand their constituencies—and ultimately to know whether those constituencies are thriving—using traditional economic measures just isn’t sufficient.Those leaders should also know their constituencies’ wellbeing. In fact, economists are starting to care more about wellbeing and […]
Here’s What Economics, Dating And Recruiting All Have In Common
Markets

SORRY SPAIN: Morgan Stanley Doesn’t Think Your Soccer Team Will Save Your Economy

[credit provider=”Wikimedia Commons” url=”http://commons.wikimedia.org/wiki/File:FIFA_World_Cup_2010_Spain_with_cup.jpg”] Via Morgan Stanley, in a note to clients this morning on the Spanish financial crisis and the upcoming Euro 2012 soccer tournament:Spain’s football clubs, just like its economy, are more leveraged than their peers, with a few commentators joking that some players might be used as […]
SORRY SPAIN: Morgan Stanley Doesn’t Think Your Soccer Team Will Save Your Economy
Lifestyle

Money Doesn’t Buy Happiness: USA #1 In Wealth, #12 In Happiness

[credit provider=”Flickr/Éole” url=”http://www.flickr.com/photos/eole/5017737503/sizes/m/in/photostream/”] According to The Better Life Index by the OECD, America is the richest country in terms of household wealth but comes in 12th of 36 countries tracked in happiness.The average American household held $102,000 according to the report, significantly higher than the next closest country, Switzerland, which […]
Money Doesn’t Buy Happiness: USA #1 In Wealth, #12 In Happiness
News

This Is What Mitt Romney Can Help Us Learn About One Night Stands, Gifts, Community, Taxes, And Welfare

[credit provider=”jurvetson | Flickr” url=”http://www.flickr.com/photos/jurvetson/480809538/”] Guest Post by Gabriel Rossman – Professor Rossman is a sociologist at UCLA. His work applies economic sociology to media industries. He blogs at Code and Culture and is the author of Climbing the Charts. In the course of a discussion about Mormons, a friend pointed me to a religious testimony […]
This Is What Mitt Romney Can Help Us Learn About One Night Stands, Gifts, Community, Taxes, And Welfare
News

16 Reasons To Move To Iceland Right Now

[credit provider=”Patrick Gage via Flickr” url=”http://www.flickr.com/photos/patrickgage/3639991958/”] Way back in heady days of 2009, Business Insider gave you 6 reasons to move to Iceland.Well, we actually spent some time there last month — and guess what!
16 Reasons To Move To Iceland Right Now
News

A Grim Look At France’s Economic Reality

The first quarter of 2012 was brutal for businesses in France: 16,206 filed for bankruptcy. A trajectory that may demolish the prior annual record set in 2009 during the worst of the financial crisis when 61,595 firms went bust. Since then, bankruptcy filings eased off:  58,673 in 2010 and 58,195 in […]
A Grim Look At France’s Economic Reality
Markets

Don’t Want To Share Your Mega Millions Jackpot? Here’s What To Do

[credit provider=”Flickr / Frank Roche” url=”http://www.flickr.com/photos/orchidthief/64584568/in/photostream/”] Everyone’s getting swept up in this week’s Mega Millions frenzy, gushing about what they’d do if they won the jackpot.  But what if they got lucky and had to split the prize?
Don’t Want To Share Your Mega Millions Jackpot? Here’s What To Do
Markets

9 Economic Myths

One of David Rosenberg’s latest notes touched on 9 economic myths.  If you’re familiar with his stance you probably know what his position is on each.  So, instead of regurgitate them I am going to hijack his myths and insert my own opinions:
9 Economic Myths
Markets

China Is Finally Taking Its Economic Reforms Seriously

[credit provider=”Wootang01 | Flickr” url=”http://www.flickr.com/photos/mckln/4815028934/”] Supporters of economic reform in China have not had much to cheer over the last few years, but there are growing hopes that the transition to a new generation of national leaders over the course of 2012-13 will kick-start the policy agenda. Ahead of the […]
China Is Finally Taking Its Economic Reforms Seriously
Markets

Trade Data Rains On The Jobs Parade

Earlier this month the labour Department reported that 227,000 new jobs were added to the economy in February, marking the third consecutive month of positive jobs growth. Many observers took the news as evidence that the recovery has taken hold in earnest, helping send the S&P 500 index to the […]
Trade Data Rains On The Jobs Parade
Markets

Despite Everything, The US Is Still Poised To Lead A Global Economic Recovery

[credit provider=”DonkeyHotey | Flickr” url=”http://www.flickr.com/photos/donkeyhotey/5500961693/in/set-72157626574790362″] This post originally appeared at The Fiscal Times.The U.S. is leading most of its major trading partners in burrowing out of the mountain of private sector debt that nearly destroyed the global economy and is still retarding the economic recovery, a new report says.
Despite Everything, The US Is Still Poised To Lead A Global Economic Recovery
News

U.S. Economic Confidence Is Now The Best It’s Been In Four Years

U.S. economic confidence improved sharply to -18 in the week ending March 11 from -25 the prior week — the highest since the week ending Feb. 13, 2011, when it was also -18. The -18 readings this year and last are the highest weekly levels Gallup has recorded since it […]
U.S. Economic Confidence Is Now The Best It’s Been In Four Years
News

Why Fans Don’t Cry Foul Over Athletes Being Part Of The One per cent

[credit provider=”AP Images”] Ken Rogoff, an economics professor at Harvard, recently wrote a column accusing sports fans of hypocrisy because of their “blasé acceptance of the salaries of sports stars,” when those same fans react negatively to the salaries and bonuses of people on Wall Street…If a star basketball player […]
Why Fans Don’t Cry Foul Over Athletes Being Part Of The One per cent
Markets

The Benefits From Globalization Are Understated

In a previous post, I presented evidence that the world is far less globalized than most people believe, which implies there is also much more headroom to expand globalization than many think. Whether we should favour a more globalized world or not, of course, is an entirely different question, requiring an […]
The Benefits From Globalization Are Understated