The Retrenchment Rule

Gordon Pye was a finance professor at UC Berkeley in the 1970s.  Then he became Chief Economist at a bank in New York City.  After ten years or so, the bank was acquired by another bank that already had a Chief Economist.  So Professor Pye took early retirement and began to contemplate the appropriate . . . → Read More: The Retrenchment Rule

2013 quarter 1 Gross Domestic Product

U.S. economic growth accelerated from 0.4 percent in the fourth quarter of 2012 to 2.5 percent in the first quarter of 2013. This acceleration was driven mainly by increases in consumption growth and inventory investment. Another factor was that government expenditure was less of a negative contribution to growth in first quarter by about . . . → Read More: 2013 quarter 1 Gross Domestic Product

Sarah Conly

Previously published in the Orange County Register

Sarah Conly is a Bowdoin College philosophy professor who has recently gained some fame/notoriety/attention with a New York Times piece Three Cheers for the Nanny State (which argues that sometimes government should protect us from ourselves.). That piece has been rebutted by, among others, Jean Yarbrough, another . . . → Read More: Sarah Conly

A “Comeback” in Name Only

Previously published in The City Journal

The New York Times loves California. Well, parts of it, anyway. Adam Nagourney, writing a few weeks after voters approved a temporary income- and sales-tax hike, reported that the state’s economic gloom was “starting to lift,” even before the tax had taken effect. Last month, Timothy Egan found . . . → Read More: A “Comeback” in Name Only

Why are Mortgage Rates so High?

At first glance, this seems like a dumb question.  The Freddie Mac 30 year mortgage rate is approximately 3.75%, near its all-time low.  Based on this rate, the median income family can afford to purchase 200% of the median priced home.  This so-called “affordability” measure is the highest it has been in twenty years.

. . . → Read More: Why are Mortgage Rates so High?