econintersect.com
       
  

FREE NEWSLETTER: Econintersect sends a nightly newsletter highlighting news events of the day, and providing a summary of new articles posted on the website. Econintersect will not sell or pass your email address to others per our privacy policy. You can cancel this subscription at any time by selecting the unsubscribing link in the footer of each email.



>> Click Here for Historical Wall Post Listing <<

What We Read Today 08 August 2016

Econintersect: Every day our editors collect the most interesting things they find from around the internet and present a summary "reading list" which will include very brief summaries (and sometimes longer ones) of why each item has gotten our attention. Suggestions from readers for "reading list" items are gratefully reviewed, although sometimes space limits the number included.

This feature is published every day late afternoon New York time. For early morning review of headlines see "The Early Bird" published every day in the early am at GEI News (membership not required for access to "The Early Bird".).

BECOME A GEI MEMBER - IT's FREE!

Every day most of this column ("What We Read Today") is available only to GEI members.

To become a GEI Member simply subscribe to our FREE daily newsletter.

The rest of this post is available only the GEI Members.  Membership is FREE -  click here

Topic today include:

  • Autonomous Driving is Coming So Fast It Will 'Blow Your Mind' (Eleon Musk)

  • Walmart Purchases Jet.com to Compete with Amazon

  • Basic Universal Income in Ancient Rome

  • Three-Day Work Week

  • Is It True Heterodox Economists Did Not Predict the Great Financial Crisis?

  • OPEC Still Not Ready to Limit Production

  • Trump's Economic and Tax Plan

  • Fannie and Freddie Might Need to be Bailed Out in a Financial Crisis

  • Utility Scale PV Solar Surges, but Still Less than 1% of Electricity

  • Russia and U.S. Trade Nasties Over Syria

  • Philippine Bill Would Ban Trump Over 'Terror Sates" Mention

  • Japanese Emperor Akohito Hints at Abdication

  • And More

Articles about events, conflicts and disease around the world

Global

U.S.

  • Trump's economic plan: no 'death tax', less business tax, and fewer regulations (The Guardian)  In an attempt to reset a campaign recently flogged by a series of controversies, Donald Trump outlined an economic vision for the US, including dramatically slashing taxes, and took sharp aim at Hillary Clinton.  In a nearly hour-long speech, unusually reading from a teleprompter, the Republican presidential nominee suggested Detroit itself was an example of “the living, breathing example of my opponent’s failed economic agenda”.  He proposed reducing income tax brackets from seven levels to three – of 12%, 25%, and 33% – and entirely eliminating income taxes for individuals who earn less than $25,000 annually, or $50,000 for a married couple.  In addition, Trump said he would lower corporate and small business tax rates from 40% to 15% – a rate he said punished “companies for making products in America”.  He would eliminate the estate tax, which currently applies to estates larger than $5.45 million for individuals, or $10.9 million for married couples.  He pitched a plan to allow families to “fully deduct” all childcare expenses from their taxes, which he said would “reduce cost in childcare, offering much needed relief to American families”.  See also How Trump's Economic Vision Measures Up (Bloomberg).

  • U.S. housing agencies would need more taxpayer funds in a crisis: regulator (Reuters)  Fannie Mae and Freddie Mac, two government-controlled housing finance agencies, would need a big cash injection to weather another financial meltdown, a government regulator said on Monday.  Fannie and Freddie would need as much as $126 billion in taxpayer funds to come through a serious downturn, according to a 'stress test' from the Federal Housing Finance Agency.  The companies, which were once owned by shareholders, have drawn $187 billion from the U.S. Treasury since they were seized by the government in September 2008 as the global financial crisis tightened.  Since then, as the housing market has strengthened, they have returned roughly $250 billion to the Treasury.  Lawmakers have not settled on the future of two companies.  The 'stress test' required by the Dodd Frank reform legislation of 2010 projected the companies would have to draw at least $49 billion to $126 billion in the case of a serious economic downturn.   Econintersect:  At this point the government has made approximately $63 billion from Fannie and Freddie.  In a crisis that could be reduced to $14 billion gain or, worst case, a loss of $63 billion.

  • The US Has 10GW of Utility-Scale PV Projects Under Construction (Green Tech Media)  According to data from GTM Research's Utility PV Market Tracker, the United States now has over 10 gigawatts of solar PV projects under construction.  Just three years ago, the U.S. was on the cusp of installing its 10th cumulative gigawatt -- and that was across all market segments. It was a milestone several decades in the making.  Now, we're going to see 10 gigawatts of PV come on-line within a single market segment over the course of just a few quarters.  See also next article.

  • Electricity Generating Capacity (U.S. Energy Information Administration)  In the preceeding article the total of all utility scale solar PV (photovoltaic) generating capacity (operating, contracted and announced, pre-contract) is approximately 72 GW.  Here is how the total production capacity has been slowly changing over recent years (graph below).  The 72 GW of operating and planned solar PV generating capacity is less than 1% of the total capacity in the U.S. in 2011.

electricity.capacity.us.2003.2011

Syria

  • U.S. urges Russia to halt Syria sieges; Russia slams aid politicization (Reuters)  The United Nations Security Council must not allow civilians on both sides of the Syrian city of Aleppo to be cut off from humanitarian aid, the United States said on Monday as Russia accused Washington of politicizing a humanitarian issue.  Insurgents effectively broke a month-long government siege of eastern, opposition-held Aleppo on Saturday, severing the primary government supply corridor and raising the prospect that government-held western Aleppo might become besieged.

Philippines

  • No to Trump: Philippine lawmaker seeks to ban U.S. presidential candidate (Reuters)  A Philippine lawmaker is seeking to permanently ban U.S. Republican presidential nominee Donald Trump from visiting the Southeast Asian nation after the billionaire called it one of the "terrorist nations".  Trump has no major business in the Philippines, but developer Century Properties Group Inc (CPG.PS) is building a $150-million Trump Tower, a high-rise residential building under license from the American real estate mogul.  In a bill filed in Manila's House of Representatives, Congressman Joey Salceda said:

 "There is no feasible basis or reasonable justification to the wholesale labeling of Filipinos as coming from a 'terrorist state' or that they will be a Trojan horse."

Japan

  • Japan's Emperor Akihito says health is failing and hints at abdication (The Guardian)  Japan’s Emperor Akihito has made a rare televised address to the nation, expressing his fears for his health and his ability to carry on as emperor, and hinting that he wants to stand down.  In the 10-minute pre-recorded speech, the monarch, 82, said he wanted an orderly imperial family succession, stopping short of saying he intended to abdicate.  Japanese law says the emperor must serve until death and is forbidden from appealing directly for retirement or abdication.  This does raise the prospect of appointing a regent to represent him until he dies.

Other Scientific, Health, Political, Economics and Business Items of Note - plus Miscellanea

  • Elon Musk: Full Autonomy Is Coming Sooner Than Anyone Expects—and It Will ‘Blow People’s Minds’ (Green Tech Media)  This is actually a business outlook review of the Tesla - Solar City merged company.  The headline refers to one specific area in the outlook: autonomous driving.

  • The Accidental Millionaire in Jet.com’s Sale to Wal-Mart (Bloomberg)  Working at a startup that gets acquired can feel like winning the lottery. Not working at a startup, but still cashing in on its acquisition, can feel pretty good too, as Eric Martin learned when Jet.com Inc. sold to Wal-Mart Stores Inc. in a $3.3 billion deal.  Martin, who works for a custom bath installation company, received 100,000 Jet shares last year when he won a contest to see who could get the most people to sign up for memberships to the online shopping site. He spent $18,000 on online ads and came away with a stake now worth millions in one of 2015’s buzziest startups.  Video discusses why Walmart is making this move:

  • What did Ancient Romans feed their poor? (Quora)  According to this piece, there was a grain ration that was handed out to all Roman citizens (it was a kind of incentive to become a Roman citizen and was a means of preventing uprisings against the Emperor), once a month I think?, and it would feed two people for a month.  Econintersect:  So the Roman's had a universal basic income.  We can hardly wait until someone offers this as a reason the Roman Empire fell.

  • Mexico’s Richest Man Wants a Three-Day Workweek (Bloomberg)  Carlos Slim thinks his plan will spur on economies with more tourism, entertainment, and culture.

  • Economics Without Math Is Trendy, But It Doesn't Add Up (Noah Smith, Bloomberg)  Smith claims that heterodox economists didn't actually predict the Great Financial Crisis.  He has some good points, especially about mainstream economics, be we suggest he read the 2010 study by Dirk Bezemer:  Twelve Who Forecast the Financial Crisis.  Smith writes:

... heterodox models didn’t “predict” the crisis in the sense of an actual quantitative forecast.

This is because much of heterodox theory is non-quantitative. Basically, people write down English words explaining their conceptual ideas about how the economy works. This describes the ideas of mid-20th-century economist Hyman Minsky, who wrote books and essays about the instability of the financial system. Minsky, though trained in math, chose not to use equations to model the economy -- instead, he sketched broad ideas in plain English.

Broad idea-sketching is certainly a valuable activity. If theorists get lost in the specifics of their models, they can blind themselves to truly new hypotheses and mechanisms that would let them make big, radical changes. I do think this has happened to some degree in mainstream macro, where most modern models are variants of an old workhorse -- the Real Business Cycle model -- that was probably broken to begin with.  


Make a Comment

Econintersect wants your comments, data and opinion on the articles posted.  As the internet is a "war zone" of trolls, hackers and spammers - Econintersect must balance its defences against ease of commenting.  We have joined with Livefyre to manage our comment streams.

To comment, just click the "Sign In" button at the top-left corner of the comment box below. You can create a commenting account using your favorite social network such as Twitter, Facebook, Google+, LinkedIn or Open ID - or open a Livefyre account using your email address.






Econintersect Behind the Wall



search_box

Print this page or create a PDF file of this page
Print Friendly and PDF


The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.


Take a look at what is going on inside of Econintersect.com
Main Home
Analysis Blog
Slow Economic Growth Will Be Around For A Long Time
The Job Guarantee, Wage-Price Inflation And Alternative Solutions: Part 2
News Blog
NASA Precise Landing Technologies Tested On Vertical Testbed Rocket
March 2017 Conference Board Consumer Confidence Highest Since 2000
Richmond Fed Manufacturing Survey Again Improves In March 2017.
Case-Shiller 20 City Home Price Index January 2017 Shows 5.7 % Year-over-Year Growth
A Changing Rulebook To Tame The New Global Arms Race
Infographic Of The Day: Chart: Understanding Alphabet's 4 Billion Dollar In "Other Bets"
Early Headlines: Asia Stocks And Dollar Up, Oil, Gold Steady, Obama Climate Policies Gone, US Oil Glut, Euro Surges, Shorts Remain, Trump Into Yemen?, Iran-Russia Deals, Cat 4 Cyclone Hits Oz, And More
March 27, 2017 Weather and Climate Report - Will the MJO Deliver a Nino?
The Most Reputable Companies Worldwide
Gut Bacteria Play A Role In Long-term Weight Gain
What We Read Today 27 March 2017 - Special Public Edition
Is Less More In The Smartphone Market
Average Gasoline Prices for Week Ending 27 March 2017 Statistically Unchanged - Again
Investing Blog
The Dollar's Coming Impact On Markets
The Real 401k Plan Manager 27 March 2017
Opinion Blog
Macron May Lead But Le Pen Remains The Big Story
Is The 20th Century Still The 'Hayek Century'?
Precious Metals Blog
These Gold Stocks Will Produce Much Bigger Gains Than Gold Itself
Live Markets
28Mar2017 Pre-Market Commentary: Wall Street Eyes A Lower Opening, Crude Prices Edge Higher, Investors Await Fed Members Clues On Timing Of Next Rate Hike
Amazon Books & More






.... and keep up with economic news using our dynamic economic newspapers with the largest international coverage on the internet
Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government































 navigate econintersect.com

Blogs

Analysis Blog
News Blog
Investing Blog
Opinion Blog
Precious Metals Blog
Markets Blog
Video of the Day
Weather

Newspapers

Asia / Pacific
Europe
Middle East / Africa
Americas
USA Government
     

RSS Feeds / Social Media

Combined Econintersect Feed
Google+
Facebook
Twitter
Digg

Free Newsletter

Marketplace - Books & More

Economic Forecast

Content Contribution

Contact

About

  Top Economics Site

Investing.com Contributor TalkMarkets Contributor Finance Blogs Free PageRank Checker Active Search Results Google+

This Web Page by Steven Hansen ---- Copyright 2010 - 2017 Econintersect LLC - all rights reserved