Wednesday, August 29, 2012
The following is today's Beige Book release by the Richmond Fed. This statement is what the Richmond Fed thinks about the local and U.S. economy.
Everyone knows Rosy Scenario by reputation but it seems few will admit to knowing her in person, at least around the Hotel Jefferson on West Franklin Street.
The following is the text of the Federal Reserve Board’s Fifth District--Richmond.
Wednesday, August 22, 2012
The Fed is moving closer to QE3 and says so in minutes of its July 31 - August 1 meeting released today.
So ask yourself this basic question.
If the Fed and Mr. Bernanke believe the economy is weakening, why should you buy equities? Stocks, real estate, whatever. WHY BUY NOW?
Every U.S. President on inauguration day gets a recession as an incoming present. Whether Obama or Romney wins matters little to the GDP. There are way too many headwinds to avoid another increase in unemployment rates and even slower GDP growth. Right now a new recession is coming unless there is a deal on the deficit.
Again, it's not just me saying this. Ask the Fed. QE3 is coming.
If they see weakness, why not wait and see if Bernanke & Company are right? What's the hurry?
Monday, August 20, 2012
For people who love urban ruins and scuba diving it doesn't get any better than this.
Friday, August 17, 2012
Just six weeks into Seattle's plastic grocery bag ban, it's clear the measure is failing miserably.
Since July 1st, the day the ban went into effect, Seattle media have done exactly one story on the impact of the plastic bag ban. Even this article says 50% of people are buying paper bags.
An inconvenience for literally every person living or visiting the city, the law is merely conditioning people to use paper bags and not reusable ones. I see few canvas or plastic bags being carried on the street but paper bags are everywhere, especially in the trash. These pictures were taken by me at a friend's house. It's hard to see with all the cardboard boxes but there are dozens of paper bags in there.
Watch the Seattle City Council next year raise the paper bag cost to 10 cents or even a quarter. They will claim the law is a remarkable success but needs further improvement. This prediction is not clairvoyance on my part. It's what happens every single place this dumb idea is tried. Read about San Francisco's plastic bag ban extension.
Until this law passed I almost never saw paper bags thrown away on the street. Now I see them all the time on sidewalks everywhere, especially broken ones like this lonely bag at the corner of 3rd and Union in the heart of downtown Seattle.