Earn What You Spend

I recently bought TIPS - Treasury Inflation-Protected Securities - for the first time.  All the talk about looming hyperinflation was beginning to alarm me, and given a recent conversation with a friend who professionally manages money, it seemed justified.

Alan Blinder’s article in the NYTimes was all the more interesting: inflation, he contends, is the least of our worries.  Our primary worry is still deflation, not inflation: it is amazing how until recently virtually every economist was worried about a Great Depression-style deflationary cycle.  But with deficits as far as the eye can see, interest rates as low as they [...] Continue Reading…

Just out from the AP: total unemployment insurance claims fell for the first time since January:
The Labor Department said the total unemployment insurance rolls fell by 148,000 to 6.69 million in the week ending June 6, the largest drop in more than seven years. The decline is a sign that layoffs are easing.

The drop also breaks a string of 21 straight increases in continuing claims, the last 19 of which were records. A dip in continuing claims several weeks ago was later revised higher.
This could signal a “slowing of the rise” in unemployment claims.  That is, things are not [...] Continue Reading…

CNBC outlines how credit card default rates are rising above record levels:

Bank of America—the largest U.S. bank—said its default rate, those loans the company does not expect to be paid back, soared to 12.50 percent in May from 10.47 percent in April.
In addition, American Express, which accounts for nearly a quarter of credit and charge card sales volume in the United States, said its default rate rose to 10.4 percent from 9.90, according to a regulatory filing based on the performance of credit card loans that were securitized.

[via Calculated Risk]

Bennington College president Liz Coleman gave my favorite talk from this past year’s TED.  Her call to action: we need to reinvigorate the liberal arts education.  There is a trend that says a deep specialization in a single subject is the best way to learn.  However, without a broad and fundamental understanding of the world around us, we cannot adequately address the problems we face.  

It reminds me of Tim Brown’s description of IDEO’s recruitment of T-shaped individuals: 
Regardless of whether your goal is to innovate around a product, service, or business opportunity, you get good insights by having an observant and [...] Continue Reading…

To watch the rise and fall of Alan Greenspan’s stock with the public is nothing short of spectacular.  The former Federal Reserve chairman was revered as a savant gracing us with his unparalleled intellect that could keep the economy running strong.  Then, in the lightening fast manner that only public opinion is capable of, he was roundly condemned for not doing enough to prevent the current economic downturn.  He is currently accused of fueling the real estate and stock market bubbles by keeping interest rates too low for too long.

Enter an unlikely hero: Ben Bernanke.  Here is a man who spent his career studying the [...] Continue Reading…

I know I’m late to this news, but we’re almost there:
The American economy shed 345,000 jobs in May, and the unemployment rate spiked to 9.4 percent, but the losses were far smaller than anticipated, amplifying hopes of recovery.  Economists described the Labor Department’s monthly jobs report, released Friday, as an unambiguous sign of improvement, yet also clear evidence of broadening national distress, as millions of households grapple with joblessness and lost working hours.

The fact that a report showing the highest unemployment rate in more than a quarter-century was embraced optimistically testified to the stark fears over the economy in recent months.
So [...] Continue Reading…