Why increased worker productivity is bad for the economyWorker productivity in the US has jumped dramatically by 9.5% in the last quarter. Employees working harder for less hours, just what the boss wants in a recession, right? Except, morale is down, productivity isn’t sustainable and workers are simply covering their colleagues who’ve been fired.
US economy
Political economy: US Fed says we’re saved
The US Fed says economic activity has picked up… but household spending is sluggish, interest rates will remain the same, and the economy is still shedding jobs. No surprises here, says Henry Thornton.
Dowd: Rush Limbaugh is immature and narcissistic
Shock jock Rush Limbaugh is one of the key media mouths of the Republican Party and he loves to insult at Obama. Too bad he forgets the actions of his good mate Dubya, because it wasn’t Obama who stuffed the economy or brought about the war in Iraq, notes Maureen Dowd.
All-American hero Buffett has a $26.6b rails bet
Warren Buffett has revealed a deal that defines his optimism in America’s future, spending $26.6b to buy out America’s second biggest railroad.
An inconvenient truth sobers thinking on weak state of US banking
Markets are not known for their consistency. Last night, the US market went up 148 points very quickly, then slid back into the red, only to close up 76 points.
Fed’s Thursday statement the key to US concerns
Forrget China, South Korea, and even Japan: when it comes to confidence in the global financial system, the world remains firmly coupled to the US.
Political snippets: The Barossa’s approach to a crushing problem
The beleaguered Australian wine industry gets some relief with the news that the crush during this year’s vintage was 5% less than in 2008, a cautionary tale from Paul Krugman, and why we’re still not “closing the gap”.
US rebound overshadowed by Costco’s food stamps move
So the American recession is over: go tell it to the eight million or more people who have lost their jobs and remain unemployed, the tens of millions more working shorter hours for lower wages, or the 35 million or so on food aid.
US pulls itself out of recession, but hold the champagne
US government figures show a growth rate of 3.5% in the third quarter, indicating that the debilitating US recession is no more. Too bad consumer confidence is down and so is faith in Obama’s ability to handle the economy.
Green shoots scepticism in the land of the greenback
Slowly some healthy scepticism about the strength of those worldwide green shoots is emerging in financial markets, but it’s nothing dramatic yet. The Aussie dollar fell slightly against the US dollar and Norway lifted interest rates.
American consumers give up, go home
The unhealthy position of the big market rally has been exposed for the high-wire act it is by a sharp fall in American consumer confidence, to 47.7 in October.
US economy flirting with the repo men
The overnight repo market holds the key to Wall Street’s bubble-driven economy. The crazy days of 2008 have now been laid bare, writes Julian Gillespie.
Roubini: The next big crash is already underway
The global economy may appear to be in recovery, but people are borrowing at negative interest rates and investing in risky assets like commodities, equities and credit. We’re creating an even bigger bubble than before, says Nouriel Roubini.
Political economy: How best to regulate the financial system
It has been observed that if a bank is too big to fail it is too large to live, writes Henry Thornton. Goldman Sachs is in the class of organisations that should be allowed to fail.
Country clubs and corporate jets: perks continue at bailed-out banks
When the US government was bailing out their banks to the tune of hundreds of billions of dollars last year, big banking executives were receiving more perks and bonuses than usual, according to new corporate disclosures.
Riding the coattails of Asia’s success
Despite initially being the hardest hit by the GFC, Asian economies have proven more resilient than US and Europe. Manufacturers are hopping on board, exporting to developing countries like China and India and reaping the rewards.
How Wall Street makes its billions
All the major Wall St banks’ profits come from trading, but who is on the receiving loss end of trades? asks Philip Greenspun. Banks don’t just shift Federal money around and skim off profits for themselves, do they?
Krugman: Big Banks are still buggered
Don’t be fooled by their cash splashing bonuses and reported “record profits”, says Paul Krugman: the big banks are still in deep poo; they’re just really good at pretending they’re not.
Despite rebound, US still hasn’t got its housing in order
Stand by for the “two-speed America” story to start emerging: that’s where the rebound in financial markets and on wall Street is way ahead with the sluggish wider economy, especially housing.
US economy blows another bubble
The great market bubble goes on as cheap credit, blinkered managements and greedy investors continue to power markets higher to unsustainable levels.
US lending continues with the contractions
US banks are showing no other sign than a continued contraction in all forms of lending if you aren’t already a big and beautiful company, writes Julian Gillespie.
Political economy: a looming property crash?
One reason to be worried about raising interest rates here is the parlous state of the US economy, writes Henry Thornton, with US unemployment at 9.8% and hours worked at record lows.
Reality bites global economy, again
Suddenly realism is back in fashion on Wall Street and in other parts of the business world. Which is why markets across the globe are falling, quickly and sharply.
Political economy: the jobs challenge
The good news is that the US downturn is in the process of bottoming, though jobs are still falling, with around 15 million workers unemployed, writes Henry Thornton.
Why Swan was right on stimulus
It made sense for policy makers everywhere to use all available counter-cyclical tools in an urgent attempt to lessen the serious risk of economic disaster, says Rory Robertson. But the economy story is not all good.
