Dreadful as 2008 was for the U.S. automakers, 2009 is starting out even worse.
Author Archives: James_Hamilton
Worth reading
Links to a few items I found interesting on non-residential structure investment, the “bad bank” proposal, and separation of powers.
Oh yes it’s a recession all right
The Bureau of Economic Analysis reported today that U.S. real GDP fell at a 3.8% annual rate in the fourth quarter of 2008.
Stimulus bill
House Democrats have unveiled their proposal for economic stimulus. Here’s mine.
Bailouts should be no fun
If everybody wants a bailout, that’s a good indication that we’re making some mistakes.
Executive compensation
Is there a problem? And is there a solution? My answers: yes, and yes.
Bernanke on the Fed’s balance sheet
In remarks in London today, Fed Chair Ben Bernanke let the world know how he views the risks and benefits of the recent dramatic changes in the assets and liabilities of the U.S. Federal Reserve.
Signs of a thaw
Yes, I saw the discouraging headlines. But I also see signs of hope in last week’s economic news.
December auto sales
On a seasonally adjusted basis, U.S. light vehicle sales remained deeply depressed in December. But at least things don’t seem to be any worse than they had been the previous month.
The oil shock and recession of 2008: Part 2
In my previous post, I presented evidence that the oil price increase over 2007:H2-2008:H1 made a significant contribution to the slowdown in consumption spending in general and decline in spending on domestic automobiles in particular. Here I discuss why this should be regarded as a key development that turned the slowdown in growth into a recession.