Latest Posts from Economist's View

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• Links for 11-10-2012
• Fed Watch: Consumer Sentiment Back on Track
• Net Wealth Shock in US, by Net Worth Percentile

Links for 11-10-2012 Posted: 10 Nov 2012 12:06 AM PST The Simple Analytics of Invisible Bond Vigilantes - Paul Krugman Waiting for the bond vigilantes - Nick Rowe The Real Game of Chicken - Robert Reich The single best graph on what's driving our deficits - Ezra Klein What kind of inequality matters most? - Ricardo Fuentes A State-Dependent Model for Inflation Forecasting - Stella and Stock No Economic Basis for Holding Middle-Class Tax Cuts Hostage - CBPP Mary Anastasia O'Grady Needs to Take a Deep Breath - Uneasy Money Is job creation on Obama's second-term agenda? - Economic Policy Institute Fed's Bullard Sees Twist End, More QE3 on the Table - WSJ Options for the Deficit from CBO - Tim Taylor Poland's Belka on limits of 'orthodox' monetary policy - Money Supply How Do You Say "Wall Street" in Latin? - Liberty Street Review: "Volcker: The Triumph of Persistence" - Washington Post China's Economic Growth and American Fears - Uwe E. Reinhardt The widespread impact of unemployment - Resolution Foundation The less equality, the more important fairness becomes - Robin Harding Getting the Questions Right - macroblog

Fed Watch: Consumer Sentiment Back on Track Posted: 09 Nov 2012 12:17 PM PST Tim Duy: Consumer Sentiment Back on Track, by Tim Duy: The preliminary Reuters/University of Michigan consumer sentiment number for November rose to its highest level since 2007. Does this foreshadow a faster pace of consumer spending? I think it is too early make such predictions. Remember, sentiment has been rising since the middle of 2011, but consumer spending has sagged. So far this year, consumer sentiment has mostly played a game of catch-up. In the middle of 2010, real household spending diverged from consumer sentiment. This year, the two series re-converged: Consumer sentiment so far has simply returned to levels consistent with the pace of spending. Further gains, however, would be consistent with faster spending. Something to keep an eye on as an upside risk in 2013.

Net Wealth Shock in US, by Net Worth Percentile Posted: 09 Nov 2012 11:00 AM PST Via Amir Sufi on Twitter (@profsufi): Net Wealth Shock in US, by Net Worth Percentile [click on figure to enlarge] For poor and median households, Great Recession wipes wipes out 20 years of net worth accumulation For the rich, only small decline [Link]