Wednesday, March 9, 2016
Some daily reads
The market is probably going to dither for a while. First, they're going to be let down when they're reminded that Mario Draghi isn't going to waste his time pushing on a string when the Germans are fully committed to crippling austerity; then, they'll be a bit pissed if the Fed raises rates in March.
So there's not much to do news-wise, and I have midterms over the next few days anyway, thus the light posting.
But here's a bit of news:
WaPo - stop worrying about a recession, Mr. piddle-panties. Kinda sad that O'Brien actually had to write this.
Reuters - oil producers talking about $40. Once that talk begins, speculative shorting of oil becomes a suicide mission. Rule one: don't go up against political risk.
FT Alphaville - Chinese outflows are dollar debt payments, fucktard. And also investment in foreign assets.
FRBSF - what's up with wage growth. This has little direct application to the wage inflation question, but it does explain a few features/bugs in the data.
Mark Thoma - everything we teach undergrads about minimum wage is wrong. I'd just like to point out that (a) minimum wage earners are also consumers, (b) companies raise prices (and thus profit, and thus employment demand) on products with inelastic demand (i.e. necessities) when the marginal buyer (i.e. the poor) has more money, and (c) in any case, anyone who thinks the wage rate equals marginal product of labour in a competitive labour market has never worked in the real world. This is really so fucking simple I wonder why we get taught "minimum wage causes unemployment" in undergrad.