Category Archives: Economic fundamentals

US Mortgage Lending is Tumbling

Yves here. We had predicted that the sharp rise in mortgage rates precipitated by the Fed’s taper talk would put a damper on the housing “recovery” and could even send it into reverse if rates continued to increase. They’ve in fact fallen over the past few weeks but are still markedly higher than in the spring. The central bank has been sending mixed signals over the last week or so, on the one hand seeming more inclined to taper based on its cheery view of the fundamentals, but concerned over what a budget slugfest might do to the confidence fairy.

Fixing Old Markets With New Markets: the Origins and Practice of Neoliberalism

Philip Mirowski is the Carl Koch Professor of Economics and the History and Philosophy of Science University of Notre Dame. Professor Mirowski’s latest book is Never Let a Serious Crisis Go to Waste: How Neoliberalism Survived the Financial Meltdown

The interview was conducted by Nathan Tankus, a student and research assistant at the University of Ottawa. He is currently a Visiting Researcher at the Fields Institute

Ilargi: London Is Fracking, And I Live By The River

By Raúl Ilargi Meijer, editor-in-chief of The Automatic Earth, Cross posted from Automatic Earth

It’s a state of mind, a way of thinking and a belief system bordering on outright religion all in one. If it would be recognized as a religion, it would be the world’s biggest. Its followers and proponents hold that growth is a necessary element of survival, that technology is capable of solving all problems (especially those caused by mankind), and that the earth, nature, the living environment, is there for mankind to be exploited at will to achieve that growth

Five Reasons Congress Should Be Deeply Ashamed About Jobs

How Congress made itself a big part of the “where are the jobs?” problem.

Austerity Claims Victory in Europe

Yves here. Even though Delusional Economics has moved into a guardedly positive stance on Europe, the “recovery” is halting enough in Europe that there are still quite a few analysts on the other side of the fence.

European Pundits Starting to Give Up on the Eurozone

We’ve been pointing out for some time that Germany has refused to budge from wanting contradictory things relative to the Eurozone. Now something still has to break, but some of my correspondents who’ve just been in Europe now think that we will see a political crisis in Europe before we see an economic one, and that, like objects in your rear view mirror, may be closer than it appears.

More Good News from Europe

Yves here. I don’t want to be withholding good news when there is good news to be had. But remember, the ISM results for Europe are just over 50, which is the difference between growth and contraction. So in this context, “good news,” given how high unemployment is in the Eurozone periphery, is sort of like “the vital signs are improving enough that the patient might be able to leave intensive care and go into a regular hospital room.”

“The Media Just Won’t Report on This Crappy Economy,” Such As 80% of US Adults Near Poverty, GDP Funny Business

Reader Cathryn Mataga complained yesterday in comments about the under-reporting of how bad things are out in the real world where most people live. It’s not hard to find proof of her thesis.

Europe’s Good News, Bad News

Data out of Europe is showing relative improvement on several important fronts, but is this merely stabilization or “less bad” as opposed to finally turning a corner?

James Galbraith on Social Breakdown and Financial Stress in Europe and Why the Word “Stimulus” Needs to be Banned

Yanis Varoufakis provided the English translation of a new interview with James Galbraith published in Suddeutsche Zeitung. Galbraith focuses on institutional arrangements, the need for restructuring and reform, and constraints on growth.

Lynn Parramore: The Depressing Tale of How Greedy Financial Titans Crushed Innovation and Destroyed Our Economy

Whatever happened to innovation in America?

Europe Extends and Pretends

As I’ve been covering over the last few months the data coming out of Europe of late has been slowly getting better, and last nights’ PMI continued the trend. But “better” still needs to be put in context.

Four Headwinds to the US Housing Recovery

Yves here. This post from MacroBusiness describes three risks facing the American housing recovery, and I thought I’d add a fourth, which is the open question of how much longer private equity funds and other speculators will continue to bid up housing prices.