Does Government Austerity Cause Recession?

Written by Steven Hansen Economists continue to warn that austerity is not the way to go for government spending.  I am open to using austerity as one of the tools to balance an economy – just not the primary tool. You cannot hope pay off sovereign debt by contracting the economy. What would an economy …

Sequester: No Matter What Happens, It Is Wrong

Written by Steven Hansen and John Lounsbury CBO [Congressional Budget Office] requests appropriations of $45.7 million for fiscal year 2014. That amount represents an increase of $1.6 million, or 3.7 percent, from the $44.1 million (on an annualized basis) provided to CBO under the continuing resolution for fiscal year 2013. The increase would enable CBO …

Oil Prices Will Not Moderate for Long Periods of Time

Written by Steven Hansen Recent releases from the International Energy Agency tell of moderating growth rate of the global demand for oil – which was based on lower economic growth projections.  And promises of “fracking” to boost oil supply are bouncing around cyberspace.  Images of supply and demand curves flash in ones mind. Yet, the …

Housing: Recovering, But Big Headwinds Persist

Written by Steven Hansen The nascent recovery of new and existing home sales may be losing some steam. New home December 2012 sales were the worst year-over-year gain in 2012. Pending Home December 2012 index was the worst year-over-year gain in 2012.  Pending home sales are counted when a purchase agreement is signed for an  …