I found this to be a clear and insightful column on the economics of the Federal Budget: http://www.bloomberg.com/news/2011-08-03/generational-balance-not-budget-balance-laurence-kotlikoff.html
Business Administration Department
DJIA or Fear Index?
Dow Jones Industrial average is jittery. So what does this mean? The media would tell you that the markets are jittery because S&P downgraded T bills and that a double-dip recession is around the corner. Stock prices are indicative of two things: underlying value of companies in the long run, and investor confidence in the…
The Debt Ceiling – beyond the media hysteria
The media loves politics, especially presidential election politics, so the frenzy about the debt ceiling is not surprising. But, beyond the politics (which I do not claim to understand better than anybody else), what are the real economic issues associated with failing to raise the debt ceiling? Is this really a crisis? A few observations…
