201012.26
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Weekly Economic and Market Review

The economic reports released in the Christmas week continued the recent trend of stronger data. In particular, consumers have been leading the way as shown by several reports last week. The Goldman and Redbook weekly retail reports both showed strength going into the holiday with the year over year change now in the range of…

201012.19
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Weekly Economic and Market Review

President Obama signed the bill last week to extend the Bush tax rates for another two years. About the only people pleased by that fact were the Congress critters who voted for the extension and the occupants of the top tax bracket who were spared the inconvenience of meeting with their tax attorneys and CPAs to find a…

201012.12
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Weekly Economic and Market Review

I don’t believe President Obama could have been more obvious if he’d taken out a full page ad in the New York Times. He isn’t happy about it and his heart isn’t really in it, but he is shifting policy to a more centrist tack. The compromise with Republicans on the Bush tax rates was…

201012.05
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Weekly Economic and Market Review

Phew! Thank goodness that’s resolved. The President’s fiscal commission released its recommendations for solving the budget deficit and the plan was promptly embraced by a majority of the panel that crafted it. The plan will now be enacted forthwith, eliminating all manner of tax breaks, while simultaneously lowering marginal tax rates, cutting government spending across…

201012.01
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Euro Myths

John Cochrane on the European debt crisis: The big culprit in all of this is short-term debt. There would be no crises if governments had issued long-term debt to match long-term plans to repay that debt. If investors become gloomy about long-term debt, bond prices go down temporarily—but that’s it. A crisis happens when there…