That was the question that a reporter from Reuters asked me this morning. Here is what I answered.
GM auto sales strong in June
One feature of past oil shocks that contributed to an economic downturn was a sudden change in consumers’ car purchases. But the latest indications are that U.S. automakers so far at least are not experiencing the same kind of problem this time around.
Can anything slake China’s thirst for oil?
If China’s oil demand keeps growing at its current rate, it could produce some real problems. But I see a number of reasons to expect that the growth will slow down significantly.
Concerns about the latest Social Security proposal
Having raised public awareness about the longer term challenges of funding Social Security, the Republicans now ride boldly to the rescue with– a new accounting gimmick. To the extent that it amounts to anything more than that, I’m a little worried.
A supreme mistake
Count me among those disgusted with the Supreme Court’s ruling against Susette Kelo, which
asserted the right of the government to seize her home in order to divert the property to what
it judged to be a use of higher economic value.
What is a bubble and is this one now?
Many of those discussing the possibility of a housing market bubble seem to be taking
Justice Potter Stewart’s position on pornography– they haven’t defined a bubble, but they think
they know it when they see it. Maybe it’s useful to take a look at a formal characterization of
the concept of a speculative bubble, and see how well it seems to fit the facts of the current
situation.
For the love of tulips
Many folks appear to be convinced that the current housing situation is akin to any of a
number of other famous financial bubbles of history. Trouble is, those famous bubbles weren’t
very much like what most people seem to assume.
The case for more uniform fuel standards
Problems in the U.S. wholesale gasoline market have played a relatively minor role in the
gasoline price increases of the last few years. But this is one part of the problem that we
created all by ourselves and can fix all by ourselves.
Another exciting week in oil markets
Babble about a housing bubble
There’s been much discussion recently of whether the U.S. is experiencing a speculative bubble in house prices. Like previous historical bubble sightings, this one only seems to pop up in situations where the fundamentals on their own might justify significant price increases.