We seem to be all checks, no balance.
Blame: The German view is that the Mediterraneans got into trouble because they greedily borrowed too much money from the hard-working Northerners. The truth is that the money that drained into the periphery was sent there happily by greedy northern bankers who knew the risks they were taking. Why is it we blame the borrowers but not the lenders?
Updated: “You shall know the truth, and the truth shall
set you free make you an enemy of the state.” [Note: In separate press releases this afternoon, Mr. Michaelson and First Reader Gray denounced Assange and clarified that any statements they might have made appearing to support Wikileaks were speculative fiction intended solely for the entertainment of our audience.]
Numb 'ers: In August, personal income increased 0.1% while personal expenditures increased 0.5%. Sounds familiar. Real PCE went up just 0.1%, excluding gas and food, so lay off the gas and food.
Take A Memo: Ohio's Education Department finds that charter schools generally get worse results than public schools, at twice the per-pupil cost. Oh, Look. See John Run. See John Run Off With The Money.
Difference/Distinction: A broker sent oil prices to an 8 month high while drunk. How this varies from every other day on Wall Street was not immediately clear.
Strike One For Our Side: Krugman acknowledged, indirectly, that economic decisions are matters of social policy. If social and political cohesion is to be maintained, austerity quickly becomes counterproductive even for the creditors – someone should tell Ms. Merkel.
Longer Gone: If you've been out of work a month or so, your resume has about a 7% chance of at least getting you an interview. Not great, but about twice as good as your results after 8 months on the dole. But that beats the chances of someone with a job being invited to jump ship.
Fat & Happy: The 725% increase in CEO compensation over the last 20 years is regularly explained as being necessary to retain the best corporate leaders. Must be working, for less than 2% of CEOs have left one company for another in that time.
Complacency: Seems the European technocrats forgot that there are real people out there who also have something to say about austerity programs. Luckily, the people have gone out of their way to remind their leaders that the citizenry doesn't actually enjoy dumpster diving for supper. Now Brussels has to consider if this is just a protest against what is, after all, inevitable, or if 'No' actually mean's 'No!'
Asked & Answered: Is energy independence for the US possible? Yes, in fact it is inevitable, after a while. Because after a while there will be so little energy available for export that what you'll get is what you've got.
Datapoint: Labor productivity in the US has risen 80.4%” since 1973, while median wages and compensation rose only 10.7%.
Porn O'Graphic: The Smell of Victory.
The Parting Shot: