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September 29, 2006

Amaranth hedge fund losses

How in the world did hedge fund Amaranth Advisors manage to lose $6 billion in September on natural gas trading?

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Posted by James Hamilton at 10:00 AM permalink | Comments (26)

September 27, 2006

Seasonals in new home sales

New home sales could be worse. But don't overlook the seasonals and the fundamentals.

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Posted by James Hamilton at 10:28 AM permalink | Comments (17)

September 26, 2006

Further reflections on productivity and compensation trends

Another way to look at the relationship between productivity and real compensation.

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Posted by Menzie Chinn at 09:00 AM permalink | Comments (4)

September 24, 2006

Environmental totalitarianism

What do Russia and California have in common?

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Posted by James Hamilton at 06:26 AM permalink | Comments (54)

September 21, 2006

Two Pictures and Prospects for the Dollar

The dollar weakens. Why? For how long? Against Whom?

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Posted by Menzie Chinn at 07:51 AM permalink | Comments (9)

September 20, 2006

Watching housing slide

The Census Bureau yesterday released August data for housing permits and new housing starts, both of which confirm that we are in the midst of a significant housing downturn.

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Posted by James Hamilton at 05:06 AM permalink | Comments (29)

September 19, 2006

Current Account Release for 2006q2

According to the BEA current account release (discussed by Bloomberg here) for the second quarter, net asset-based income on a Balance of Payments basis has been negative for the past three quarters.

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Posted by Menzie Chinn at 08:37 AM permalink | Comments (5)

September 17, 2006

Productivity and Compensation

A close-up picture

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Posted by Menzie Chinn at 07:54 PM permalink | Comments (11)

September 15, 2006

Steady as she goes

Some analysts, convinced a catastrophe is looming, are starting to jump at shadows. But this week's numbers do not give me much cause for alarm.

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Posted by James Hamilton at 07:54 AM permalink | Comments (8)

September 14, 2006

Measuring the U.S.-China trade balance

Some complications

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Posted by Menzie Chinn at 08:00 AM permalink | Comments (6)

September 13, 2006

Gasoline prices will fall even more

At the start of this month, I joined others in predicting that U.S. gasoline prices would soon be below $2.50 a gallon. The price has already dropped 20 cents to $2.60 a gallon since then, and it now appears likely to go down at least another 30 cents from here.

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Posted by James Hamilton at 05:47 AM permalink | Comments (23)

September 12, 2006

The July 2006 Trade Release

How surprising?

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Posted by Menzie Chinn at 01:01 PM permalink | Comments (0)

"Job Creation Continues: More than 5.7 Million Jobs Created Since August 2003" -- White House

Following up on Floyd Norris's article on how slow employment growth has been during the current expansion, as well as numerous other comments on the Web, I examine other dimensions of labor market performance.

Continue reading ""Job Creation Continues: More than 5.7 Million Jobs Created Since August 2003" -- White House"

Posted by Menzie Chinn at 09:00 AM permalink | Comments (11)

September 10, 2006

Ex post versus ex ante benefit-cost analysis: Iraq 2003-

Now that the long-delayed Senate report on pre-Iraq War intelligence has finally put the Republican imprimatur on the well-established fact that the case for Iraqi WMD's had been hyped (as well as the absence of a Iraq-al Qaeda link), we can return our attention to a rational benefit-cost assessment for the invasion and subsequent occupation, ex ante as well as (quasi) ex post.

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Posted by Menzie Chinn at 09:49 AM permalink | Comments (17)

September 08, 2006

Big Oil takes on a Big Job

Chevron Corporation announced on Tuesday a promising test from a well deep below the Gulf of Mexico, a project in which Devon Energy Corporation and Statoil each also hold 25% interest.

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Posted by James Hamilton at 03:47 PM permalink | Comments (10)

September 07, 2006

Trade Deficit Watch: 2006q2

Stabilization in the non-oil trade balance arrives. What needs to happen for adjustment to continue without a recession?

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Posted by Menzie Chinn at 08:37 AM permalink | Comments (3)

September 05, 2006

House prices still climbing

The Office of Federal Housing Enterprise Oversight (OFHEO) today released its house price indexes for 2006:Q2, which continue to show house prices climbing in all but five states, though with a significantly slower rate of increase than previously.

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Posted by James Hamilton at 07:46 PM permalink | Comments (10)

The labor market and the incipient slowdown

Some other aspects of the employment release in context.

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Posted by Menzie Chinn at 08:22 AM permalink | Comments (3)

September 04, 2006

Autos remain weak

Auto sales still a weak spot for the economy, but no big plunge yet.

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Posted by James Hamilton at 08:37 AM permalink | Comments (4)

September 01, 2006

Gasoline prices coming down

U.S. gasoline prices have been dropping and will likely fall further.

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Posted by James Hamilton at 06:15 AM permalink | Comments (12)