Category: Economics (Page 2 of 6)

NYT: Renting is a lifestyle.

NYT: Renting as a lifestyle

NYT: Renting as a lifestyle

“Forever renting is very much a movement. It’s a lifestyle.

The article emphasizes that renters should squirrel away as much as possible in an index fund or other investments.  Millennials and Gen Z need an article like this to tell them that renting is a lifestyle choice, so it’s okay to do.

My sophisticated aunt and uncle never owned a home.  I’d like to ask my uncle why.  He had a steady job as a teacher and she was an office manager.  My uncle liked building things and working on projects, but must have done that all at school.  It wasn’t the money.  They bought a vacation property in the Poconos and had plenty of investments.  The apartment they’d rented for decades was in a good neighborhood, nicely furnished and rather mundane. 

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Dow hits 40,000, and the party goes on.

Fox Business: Dow Hits 40,000

It isn’t hard to see how the stock market keeps climbing.  The federal government borrows a trillion dollars for a stimulus package or a boondoggle, or  it doesn’t matter what it’s for, but the money finds it’s way into the equity market, and it keeps going up.

I used to think that eventually, the shit’s going to hit the fan.  In 1988, I bought 10 ounces of gold and stashed it in a safety deposit box.  Gold kept dropping and languished below the $430 per ounce I had paid for it.  Fourteen years later, I sold at $445 per ounce.  I’d made $150.

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WSJ: Taylor Swift says, “suck it up and get to work”.

WSJ: Taylor Swift says to suck it up.

WSJ: Taylor Swift says to suck it up.

A clear sign hustle culture is coming back is how quickly America’s office set has glommed onto Swift’s upbeat dance hit, “I Can Do It With A Broken Heart,” released in April as part of her 11th studio album, “The Tortured Poets Department.”

I don’t know or care about Taylor Swift, but if she is telling people to get to work, rather than wallow in sadness, I am all for it.  Her message of resilience is much more appealing than the teachers taking a mental health day because they just can’t.

They can’t even finish the sentence to explain what is so untenable.

Politico: Far Right wants more babies.

Real Clear Politics: Have more babies.

Based on recent articles, we are supposed to worry about not having enough babies and people who worry about not having enough babies.

Back in the 1980’s, before we were afraid all the time, I supported several environmental groups.  Sierra Club, World Wildlife Fund and a few others.  Never Greenpeace, they were already crazy.  World population was an issue of interest, so I supported a group called Negative Population Growth.

They were completely reasonable, but in retrospect, I can see how they could go off-the-rails in a catastrophic way.

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NYT: Paul Krugman insults Ohio

NYT: What’s the matter with Ohio?

These East coast elitist dickheads can’t be very bright because they keep trying to win us over with these articles about why we are so dim.

If you aren’t familiar with him, Paul Krugman is the George Costanza of Nobel prize winning economists.  Krugman could take the opinion that was the exact opposite of everything he thinks, and he would be more correct and respected.

For many years, Ohio has been thought of as a bellwether state: With rare exceptions, whoever won Ohio in a presidential election won the nation as a whole. But in 2020, Donald Trump won Ohio by about eight points even as Joe Biden led the national popular vote by more than four points and, of course, won the Electoral College vote.

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Financial Times: 10 Trends for 2024

This Financial Times article on 10 trends in 2024 is worth reading because FT is pretty balanced and insightful.  To summarize:

  1. Democracy in Overdrive:  Major elections will be occurring all over the world.  A 200 year-old record will be broken when 46% of the global population will have a chance to vote.  Populism is on the rise, so that should be interesting.
  2. Bond Vigilantes versus Politicians:  Politicians like low interest rates, but they aren’t likely to drop very fast.
  3. Backlash Against Immigration:  Immigration is exploding in the Western world, and the citizens don’t like it.
  4. The No-Bust Cycle: Economies are still slowing down, but likely to avoid a classic bust.
  5. European Resilience: Europe already to a hit for the high interest rates, now the US is likely to start feeling the pain.
  6. China is Fading:  Net foreign investment in China is dropping and their economy is in worst shape than the official numbers suggest.
  7. Emerging Outside China:  Emerging economies, like Vietnam, India and Mexico no longer rely on China and are growing.
  8. Dollar Decline:  With the US debt at a record 6% of the GDP, the dollar is losing it’s status in the world.
  9. Splintering the Magnificent Seven:  That is Amazon, Apple, Alphabet, Meta, Nvidia, Tesla and Microsoft, won’t all rise together.  A.I. is the next big thing, so they are all dumping money into it, but only Nvidia is making money off of it.
  10. Hollywood’s Napoleon Complex:  Ticket sales are about half what they were at the peak in 2002, and down 25% from 2019.  It won’t be getting better.

Some of these are continuations of trends that have been ongoing for a few years, but eventually, some of them will hit big.

Biden Spends $10 Billion on Another Waste of Time

Biden putting $10 billion into high speed passenger trains.

This is another bad idea that we will have to spend a trillion dollars on before we give up.

I’ve ridden the Shinkansen in Japan and the LGV in France, and enjoyed both.  The US is not Japan or France.  America has a well developed rail system, and we use it to carry freight.   

There is a high speed passenger rail project in California.  The cost is estimated to be a quarter-billion dollars per mile.  Biden could spend our money to put down 40 miles of high speed rail or he could have one nuclear power plant built.

WSJ: What Friends Can Teach About Money

WSJ: What Friends Can Teach About Money

WSJ: What Friends Can Teach About Money

Interesting article about how Gen Z and Millennials learn about managing money.  The author does seem to have missed a few things.

A friend offered to pick up the whole tab on her credit card, “for the points.” At the time, six years ago, “for the points” meant nothing to Saint-Vil, now a 30-year-old planning manager in Brooklyn, so he pressed for more details. They lingered over the dim sum meal as a larger conversation unfolded about annual percentage rates, credit-card debt, payment schedules and more.

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