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Post 337: More Beer, Less Bubbles: When Policymakers Toast Fake Growth
- Beer maker Constellation Brands’ sales and share price are going down faster than its beer.
- US office vacancy rate ticked down from last year.
- But is still over 25% in some Western cities.
- When you buy a home the government assumes you’re paying rent to yourself and they add it to GDP making the economy look much stronger than it really is.
- Particularly if there’s a housing bubble.
- Another reason policymakers like to drive housing price higher.
- Particularly if there’s a housing bubble.
- Mercedes Benz sales have been falling for some time.
- And a look back.
- In Financial Ructions:
- We look at an apologist for central banks.
- Who believes that government debt to GDP over 100% is nothing to worry about.
- PM: Spoiler alert: It is.
- Who believes that government debt to GDP over 100% is nothing to worry about.
- There may be a new prime minister in Japan and some are likening her to the next Margaret Thatcher: Uh, no.
- And gargantuan levels of government debt have sapped economic growth over the last 35 years.
- One of the original architects of rampant investment in the unproductive housing sector in Canada, now says we need more productive investment.
- Better late than never I suppose.
- A journalist claims that the stock market is one of the best economic indicators.
- No, it’s an indicator of spending through the wealth effect.
- It no longer says much about the underlying health of the economy.
- A sociologist is right about the cracks in our economic system.
- But wrong with respect to how they got there.
- We look at an apologist for central banks.
- In our book review of Taxes Have Consequences:
- President Kennedy distances himself away from the New Deal doctrine of the Depression era 1930s.
- In 1932, local taxes were four times higher than federal taxes.
- Not anymore.
- Keynes cautions against high taxation.
- From 1966 to 1974 the S&P 500 fell approximately 60% in real terms.
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By Paul Musson- Beer maker Constellation Brands’ sales and share price are going down faster than its beer.
- US office vacancy rate ticked down from last year.
- But is still over 25% in some Western cities.
- When you buy a home the government assumes you’re paying rent to yourself and they add it to GDP making the economy look much stronger than it really is.
- Particularly if there’s a housing bubble.
- Another reason policymakers like to drive housing price higher.
- Particularly if there’s a housing bubble.
- Mercedes Benz sales have been falling for some time.
- And a look back.
- In Financial Ructions:
- We look at an apologist for central banks.
- Who believes that government debt to GDP over 100% is nothing to worry about.
- PM: Spoiler alert: It is.
- Who believes that government debt to GDP over 100% is nothing to worry about.
- There may be a new prime minister in Japan and some are likening her to the next Margaret Thatcher: Uh, no.
- And gargantuan levels of government debt have sapped economic growth over the last 35 years.
- One of the original architects of rampant investment in the unproductive housing sector in Canada, now says we need more productive investment.
- Better late than never I suppose.
- A journalist claims that the stock market is one of the best economic indicators.
- No, it’s an indicator of spending through the wealth effect.
- It no longer says much about the underlying health of the economy.
- A sociologist is right about the cracks in our economic system.
- But wrong with respect to how they got there.
- We look at an apologist for central banks.
- In our book review of Taxes Have Consequences:
- President Kennedy distances himself away from the New Deal doctrine of the Depression era 1930s.
- In 1932, local taxes were four times higher than federal taxes.
- Not anymore.
- Keynes cautions against high taxation.
- From 1966 to 1974 the S&P 500 fell approximately 60% in real terms.