The World's Most Profitable Bank

Click the title above to access a great article on the Federal Reserve. It explains the primary functions of the institution as a fiscal agent for the government and just how lucrative they can be. The article also offers perspective to the unique depth of this latest crisis.

Education And Unemployment/Stay In School

Could Have Fooled Me!!

Yesterday, the NBER officially declared that the recession ended in June of 2009. It may be difficult to convince people considering the lingering job shortage and plummeting household wealth being reported nationwide. But, anemic growth is still growth and unemployment is a lagging indicator. The problem will be in what shape the business cycle takes in the long-run; an elongated "U" or a faintly pitched "L"? Click on the title above to access the nation's prospects.

Good Example Of An Inferior Good

The recession has breathed life into one market recently, used cars. Brokers are paying unimaginable prices for used cars as the demand grows in the face of a shrinking supply. Inferior goods are items that you tend to buy more of when your income declines. People are hanging on to their cars longer instead of trading in and up for new ones. Consequently, the traditional replenishment of the used car market is drying up. Click on the title above to get some of the details.

Taxes Cause Crime?

Apparently, an exorbitant excise taxes on cigarettes in New York has resulted in a spike in cigarette related crime. Though the intention had been to discourage smoking by making them $10 a pack and raise revenue for the cash strapped state, an added element has been the wave of cigarette thefts in convenience stores around the state. Click on the title to get the details.

A $200 Hamburger

The Glass Ceiling Is Cracking

Click on the link above to access an audio clip from NPR on the great strides young women are making in closing the gap and surpassing male peers in salary.

Does The Hangover Make The Party Worthwhile?

Some states seem to be emerging slowly from the nation's economic funk. But three states, California, Michigan and Florida apparently over-indulged. The key to the sustained hangover gripping these states can be found in analyzing the evidence supporting the theory that the bigger you are the harder you fall. Click on the title above to access the article.

The Most Generous Countries On Earth

The United States is the fifth most-generous country on earth, tied with Switzerland, according to a new ranking from Gallup’s World Giving Index.
The index is based on surveys and other research on 153 different countries, which together constitute about 95 percent of the world’s population. The survey asks in part about charitable behavior, including donations, volunteering habits and taking time to help strangers. Based on this index, Australia and New Zealand are tied as the most-generous nations on earth.

The top 21 most-generous countries, in order, are:

1. Australia
1. New Zealand
3. Ireland
3. Canada
5. Switzerland
5. United States
7. Netherlands
8. United Kingdom
8. Sri Lanka
10 Austria
11. Lao People’s Democratic Republic
11. Sierra Leone
13. Malta
14. Iceland
14. Turkmenistan
16. Guyana
16. Qatar
18. Hong Kong
18. Germany
18. Denmark
18. Guinea

Gallup’s analysis of the data found that giving money is more strongly correlated with happiness than with a nation’s gross domestic product. ”
“It would be reasonable to conclude that giving is more an emotional act than a rational one,” the report says.
Among the other findings, age and gender affected generous behaviors. Globally, giving money to charity increases with age, largely explained by changes in disposable income. Women are generally more likely to give than men, but only just barely – 30 percent versus 29 percent.
Click on the title above to access the full report.

A Man Like Putin

This is one of the rare times when a post will venture out of the obvious realm of Economics. This segment from a great PBS show called "Sound Tracks" left me scratching my head. Most people are aware of the heavy handed tactics employed by Vladimir Putin throughout his official and unofficial life in power. But, as you will see, he's adopted the idea of a cult of personality from the old Soviet Union with a dance hall twist. In the end, maybe the Russian people have deserved 800 years of whacked dictators.