September 7, 2017
MISES-Today Stanley Fischer submitted his letter of resignation from the Federal Reserve’s Board of Governors, effective next month, the second such resignation of Donald Trump’s presidency. While Fischer’s term as Vice Chairman of the Fed was set to end next year, he had the ability to serve as a governor through 2020. Along with Trump’s decision next year on whether to replace Janet Yellen as the Fed’s chair, this means Trumps will have the opportunity to appoint five of seven governors to America’s central bank.
September 6, 2017
September 5, 2017
An inconvenient math for housing is beginning to dog Chicago: The third largest city in the US has been losing population for years. Not huge numbers, but it adds up… In 2016, according to the Census estimate, the population dropped by about 9,000 people. Since 2014, the population has dropped by about 14,000 people. Chicago’s fiscal woes, junk credit rating, and the threat of bankruptcy hanging over it don’t help.
August 31, 2017
WOLF STREET–For the good folks who hope fervently that the Fed doesn’t have reasons to raise rates or unwind QE because there isn’t enough inflation, here is an update on one aspect of inflation – asset price inflation, and particularly house price inflation – where the value of your hard-earned dollars has collapsed over a given number of years to where it takes a whole lot more dollars to pay for the same house.
August 28, 2017
MB 360–The runaway cost to attend college just continues to sprint ahead. The average student loan balance for graduating seniors is now $40,000. This is astronomical considering the per capita wage of Americans is in the high $20,000 range. The math behind this astronomical debt is rather clear and simple to follow. Student debt is one of those categories where your ability to pay said debt back is completely devoid from reality. For example, you can go into one hundred thousand dollars of debt for a degree in art that has little earnings potential in the market. Is that wise? Depends on who you ask but you can’t walk into a car dealership and purchase a $50,000 car without some financial backing and ability to pay it back. This applies to most things but the way we fund college is somewhat dysfunctional.