Daily Digest

Image by epsos.de, Flickr Creative Commons

Daily Digest 10/30 - Flood Of Money Leaving China, Can Oil Fix U.S. Unemployment?

Tuesday, October 30, 2012, 9:45 AM

Economy

Charles Ferguson: Standing Behind Every Great Con Artist is Someone Like Glenn Hubbard (Jaime)

Let's start with tax cuts, since Romney claims that he can cut tax rates sharply without increasing the deficit, and without benefiting the rich. Mr. Romney claims that tax cuts will be fully paid for by closing loopholes and deductions, and will not add to the deficit; Hubbard has publicly supported Romney's claims. Interestingly, Mr. Hubbard has quite a record on this very issue. Shortly after becoming chairman of the Council of Economic Advisors in 2001, he spearheaded the Bush administration's tax cuts, and he said lots about them.

Flood Of Money Leaving China (westcoastjan)

Chinese companies are widely believed to move money abroad both to invest and to "round trip" back into the country disguised as foreign investment to win tax breaks and other incentives.

Chinese families move money abroad to gain a better return than they can from state banks that pay low deposit rates.

PhillyDeals: Nova Bank looked like a survivor - until it failed (Thomas C.)

What went wrong? Nova president Brian Hartline was busy securing his Montgomery County home against Hurricane Sandy when I called Monday morning, and he couldn't talk. But Nova's financial distress was no secret. Federal bank regulators in 2010 barred the company from taking on more debt or paying shareholder dividends, restricted the bank from expanding, and urged directors to find a buyer.

Nova's capital ratio was low; in its FDIC report, Nova showed a loss of $5 million in the three months ending June 30 after setting aside millions to cover projected loan losses.

Higher jobless rate predicted by budget watchdog (westcoastjan)

The PBO forecast growth in real gross domestic product of 1.9 per cent this year, 1.5 per cent next year, down from the 1.6 per cent growth prediction in its April outlook, and two per cent for 2014, a drop from 2.2 per cent.

That would translate into a drop in the value of all goods and services produced in the Canadian economy annually of about $22 billion.

Koch Brothers and the Road to "Citizens United" (Arthur Robey)

Greg Palast: When billionaires break the law, they get the law changed.

Energy

World's Largest Offshore Windfarm Produces its First Electricity (James B.)

The project will see 175 turbines installed 12 miles off the coast of Kent and Essex, providing a capacity of 630 megawatts, enough to supply power to more than 470,000 homes. So far 151 turbines have been successfully installed since construction began in March 2011.

Can Oil Fix U.S. Unemployment? (David B.)

To see how the oil industry has impacted jobs, we took a look at the production of each individual U.S. state as well as their unemployment rates. The results were quite clear. Eight of the top ten oil-producing states had lower jobless numbers than the country as a whole, with the unemployment rates averaging out at 5.9% for these states. Some notable states include North Dakota and Oklahoma who have current jobless rates of just 3% and 5.2% respectively.

Hurricane Sandy: Litmus Test for America's Utilities (James B.)

Hurricane Sandy’s 900-mile storm front has already sent tidal surges over the stretch of seaboard from Delaware to New York, and its full impact was not expected until later on Monday, sparking mass evacuations along the coast and a shut-down of metropolitan transit. The National Guard has been deployed and airports ordered to close. Experts expect the storm will reverberate as far as the Great Lakes, of Michigan, Illinois and Wisconsin.

The power outages had already begun on Sunday, with 1,312 homes and businesses without power, mostly in Virginia Beach and the Outer Banks of North Carolina.

Environment

Quake Raises More Northern Gateway Concerns (westcoastjan)

“We have to think about that in the context of supertankers carrying crude oil in Douglas Channel or outside Hartley Bay or outside Haida Gwaii. ... I think that has to be part of the discussion.”

Article suggestions for the Daily Digest can be sent to [email protected]. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the "3 Es."

10 Comments

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4065
rhare's picture
rhare
Status: Diamond Member (Offline)
Joined: Mar 30 2009
Posts: 1323
Broken window fallacy

Of course it was found on Yahoo Finance, the "storm will be good for the economy" drivel.

Perhaps Paul Krugmans' aliens caused the storm.  I'll take a cue from Davos - morons!

Peter Morici wrote:

The Upside

Disasters can give the ailing construction sector a boost, and unleash smart reinvestment that actually improves stricken areas and the lives of those that survive intact. Ultimately, Americans, as they always seem to do, will emerge stronger in the wake of disaster and rebuild better-making a brighter future in the face of tragedy.

Perhaps  "economist" will become the new synonym for charlatan.....

SailAway's picture
SailAway
Status: Gold Member (Offline)
Joined: Aug 11 2010
Posts: 404
Third party Presidential debate date changed to Nov. 5

The third party candidate debate previously scheduled for this Tuesday, October 30 will be delayed due to the impending arrival of Hurricane Sandy.
 

 

http://communities.washingtontimes.com/neighborhood/political-potpourri/2012/oct/28/third-party-debate-date-change-nov-5-hurrica-sandy/

green_achers's picture
green_achers
Status: Silver Member (Offline)
Joined: Jan 3 2009
Posts: 205
"Broken window fallacy"

Does sound dubious to me, but I would appreciate a reasoned argument as to why this is the case, rather than your naked assertion of such.

rhare's picture
rhare
Status: Diamond Member (Offline)
Joined: Mar 30 2009
Posts: 1323
Broken Window Fallacy
green_achers wrote:

Does sound dubious to me, but I would appreciate a reasoned argument as to why this is the case, rather than your naked assertion of such.

A couple of the many explanations with a Google search....

http://en.wikipedia.org/wiki/Parable_of_the_broken_window

This is the same logic behind the idea that you can print your way to prosperity.

 

green_achers's picture
green_achers
Status: Silver Member (Offline)
Joined: Jan 3 2009
Posts: 205
Always a video.  I'm just so

Always a video.  I'm just so 20th century.  Does anyone use the written word anymore?

rhare's picture
rhare
Status: Diamond Member (Offline)
Joined: Mar 30 2009
Posts: 1323
Google is your friend
green_achers wrote:

Always a video.  I'm just so 20th century.  Does anyone use the written word anymore?

There was also a link to the Wikipedia article in my post.  Does any read anymore? cheeky or you could also type "Broken Window Fallacy" into Google and you'll get a ton of articles.

 

grandefille's picture
grandefille
Status: Bronze Member (Offline)
Joined: Oct 11 2010
Posts: 35
broken window fallacy

To summarize:  claiming that a "broken window" increases economic activity ignores the fact that whatever money/time/material was spent to repair the window is now unavailable for other uses.  The homeowner had a fixed amount of money, some was spent to repair the window, so now the homeowner doesn't go out to dinner. 

Organic Raw Veggies's picture
Organic Raw Veggies
Status: Bronze Member (Offline)
Joined: Jul 24 2012
Posts: 49
Broken window insurance

What about the broken window that was insured? Now the insurance pays for the new window, a better one maybe.

Fires always seem to work good for property owners. Old building turns into new building with twice as many units renting. Property owner has new building and more revenue.

Blessings!

MarkM's picture
MarkM
Status: Platinum Member (Offline)
Joined: Jul 22 2008
Posts: 837
grandefille wrote: To
grandefille wrote:

To summarize:  claiming that a "broken window" increases economic activity ignores the fact that whatever money/time/material was spent to repair the window is now unavailable for other uses.  The homeowner had a fixed amount of money, some was spent to repair the window, so now the homeowner doesn't go out to dinner. 

Not to mention that the embodied wealth in the window has been destroyed.

"Cash for Clunkers" anyone?

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments