Dr. Sam Liu Blog

10 Most Overpaid Jobs

2007-12-18T01:25:00.000-08:00

These are great examples of what we learned in micro about the determinants of people's earnings. Check out the top ten.

Most expensive restaurants in U.S.

2007-12-15T03:45:00.001-08:00

Read about them here.

Who has made profits during this subprime crisis?

2007-12-14T17:42:00.000-08:00

Looks like Goldman Sachs has made about $4 billion off of the losses on subprime mortgage securities and they could have made more. Read about it here.

Marrying for Money

2007-12-14T12:54:00.000-08:00

Interesting blog post on marrying for money.

Greenspan weighs in on the current mortgage crisis

2007-12-14T10:33:00.000-08:00

Greenspan's thoughts

The new breed of billionaire philanthropists

2007-12-13T23:53:00.000-08:00

The new breed

CEOs and their cars

2007-12-12T14:32:00.001-08:00

What does it say about their management style?

CEOs and their cars

Sovereign wealth funds becoming major market players

2007-12-11T14:32:00.001-08:00

Read about them here.

Risk of recession over 40%

2007-12-11T10:45:00.001-08:00

According to latest poll of economists.

Could the current mortgage crisis rival the S&L crisis

2007-12-11T10:44:00.001-08:00

These pundits weigh in.

U.S. Economy Dragging Down Rest of the World

2007-12-10T12:59:00.000-08:00

Nice summary of how the economies of all the countries of the world are linked together.

Slowing down U.S. economy

California entry-level home affordability increasingly out of reach

2007-12-03T17:52:00.001-08:00

If you remember what I've been warning you in class about what it takes to live in this state in terms of saving and getting the best education that you possibly can, you'll want to read this. According to this study, only 24% of households can afford an entry-level home in California.

California entry-level home affordability

Subprime mess affecting credit-worthy

2007-12-03T17:10:00.000-08:00

Thought this was an interesting observation regarding the current subprime mess.

An analysis for The Wall Street Journal of more than $2.5 trillion in subprime loans made since 2000 shows that as the number of subprime loans mushroomed, an increasing proportion of them went to people with credit scores high enough to often qualify for conventional loans with far better terms.

Subprime Debacle Traps Even Very Credit-Worthy

Political attacks getting ridiculous

2007-12-03T17:08:00.000-08:00

I understand that in politics, you accept that there will be some amount of mudslinging. But, I think digging up stuff that a candidate said while he was in kindergarten gets a bit ridiculous.

Hillary campaign attacks Obama for what he said in kindergarten

Teenagers and brain development

2007-12-02T12:05:00.000-08:00

In class we discussed when humans achieve full reasoning and judgment. Studies show that this is not reached until around age 25. I ran across this article about this topic, you might find it interesting:

teenagers

More on the SF Oil Spill

2007-11-28T22:56:00.000-08:00

This is a great graphic illustrating the spread of the SF oil tanker spill in the first 32 hours.

SF Oil spill graphic

Fears of recession

2007-11-26T20:13:00.000-08:00

Some articles on the potential for recession.

article 1

article 2

Inside the social lives of MBA students

2007-11-26T13:39:00.000-08:00

Apparently they go to a lot of costume parties...

Wall Street Bonuses for 2007

2007-11-19T14:11:00.000-08:00

Not too shabby.

$38 billion total or about $201K per person

Don't sweat short-term losses when it comes to your retirement savings

2007-11-18T12:33:00.001-08:00

Great advice on retirement savings and short-term losses.

Bear market worries

Economics of the Argentinian wine industry

2007-11-16T10:20:00.000-08:00

Interesting story of the global wine industry and Argentina's in particular. Very interesting how it got its start by a professor of economics.

Golden days for Argentine wine could turn cloudy

Economics and football 4th downs

2007-11-15T17:30:00.000-08:00

Interesting economic research into NFL coaches' decision to punt on fourth downs.

Economics and football 4th downs

A $27.5 million apartment and Who will lead Citigroup?

2007-11-15T17:28:00.000-08:00

Wow, not too shabby for the new CEO of Merrill Lynch.

Big Raise in store for Thain

Who will lead Citigroup?

Candidates

Economics and weight loss

2007-11-15T15:05:00.001-08:00

Leave it to economists to come up with an economic incentive plan to lose weight. This plan just might work for some Americans.

Economy of scales

Interesting thoughts on the trade deficit and national savings

2007-11-15T14:57:00.000-08:00

Krugman article

Why higher savings may depreciate the dollar

SF Oil spill

2007-11-14T21:53:00.001-08:00

This doesn't have to do with econ but it's an important issue nonetheless.

SF Oil spill and what you can do about it

Effects of oil spill video

Effects of oil spill video 2

Some interesting articles on retirement savings

2007-11-10T18:47:00.000-08:00

http://www.onwallstreet.com/article.cfm?articleId=3467

http://www.onwallstreet.com/article.cfm?articleId=3423

https://institutional.vanguard.com/VGApp/iip/IWEResearch?Path=IWEPUBR&File=IWE_RetResOutlook2006.jsp&FW_Activity=ArticleDetailActivity&IIP_INF=WZxxxxxIWE_RetResOutlook2006.jsp

Humor, economist style

2007-11-10T10:01:00.000-08:00

I thought this was hillarious but that's because I'm pretty nerdy. If you've read Mankiw's texts and appreciate nerdy humor, you may find this funny.

The Standup Economist

Uh oh, the perfect storm is brewing for our economy

2007-11-07T22:31:00.001-08:00

Perfect storm.

The new billionaires

2007-11-07T13:38:00.000-08:00

Very interesting to see where newly minted billionaires are coming from.

The happiness gap in America

2007-11-06T13:50:00.000-08:00

Interesting commentary on the happiness gap in America.

What does the average American buy in a given year?

2007-11-06T12:39:00.000-08:00

Read about here. The BLS puts out the Consumer Expenditure Survey. Very illuminating.

Don't let this happen to you when it's time to retire

2007-11-05T23:28:00.000-08:00

Retirement scams

The European Union's version of the Fed

2007-11-05T23:27:00.001-08:00

Read about them here and also learn how they responded to this summer's subprime crisis.

The ECB

Another casualty of the subprime mortgage meltdown

2007-11-04T23:45:00.000-08:00

Looks like the CEO of Citigroup has joined the list of CEO's of financial services firm who have lost their jobs from the whole subprime mortgage mess. Read the article and consider the estimate of Citigroup's losses from subprime mortgage securities. The number is staggering.

Citi's CEO

Potential changes to tax law

2007-10-30T23:17:00.001-07:00

Some interesting observations about the US tax system.

Plain truth about taxes and cuts

This year's Nobel Prize in Economics

2007-10-30T23:10:00.001-07:00

Read about it here: 2007 Nobel.

Who are the quants?

2007-10-29T14:24:00.000-07:00

This summer, as a meltdown in the subprime credit market spilled over into other markets, all eyes were on the mathematically trained financial engineers known as "quants." Who are these guys?

https://www.technologyreview.com/Biztech/19529/

You may have to register for a free account in order to view this article.

Fed meeting on interest rates this Wednesday

2007-10-29T14:01:00.000-07:00

Here's the current thought on what they will do:

Fed weighs its options

The life and amibitions of young dot-com millionaires

2007-10-29T13:00:00.000-07:00

Great article about what drives the 30-somethings who have made millions IPOing their dot com companies. Many of them are still driven to succeed and start new businesses.

After Succeeding, Young Tycoons Try, Try Again

Billions of dollars of California housing wealth predicted to disappear

2007-10-26T16:46:00.000-07:00

Recent Senate study predicts massive losses to CA housing wealth and potential spillovers to the entire economy. Later in macro, we'll talk about how the Fed should respond to a crisis like this.

Billions of CA Housing Wealth at Risk

Warren Buffett- How to minimize investment returns

2007-10-26T11:48:00.001-07:00

This is an old Berkshire Hathaway annual statement. These are fun to read because Buffett writes them in his unique "folksy" writing style that is very clear and concise. Skip to near the end around p.17 for his story on "How to minimize investment returns". Very interesting parable about the entire finance industry in general.

Great article on index fund investing

2007-10-26T11:42:00.000-07:00

Advice from the index fund mastermind

Similarities and differences between how Bush and Clinton handled the economy

2007-02-12T20:31:00.000-08:00

Pretty surprising to see how similar the economy has progressed between the two administrations despite two very different economic policies.

This expansion looks familiar

Hyperinflation not just a thing of the past

2007-02-07T16:42:00.000-08:00

In class, we learned about the hyperinflation of Germany right before the Nazis took power. Well, it's not just a phenomenon of the past.

Just reported in the NY Times, current Zimbabwe hyperinflation has reached an annual rate of 1,281 percent this month, and has been near or over 1,000 percent since last April.

Zimbabwe hyperinflation

Fed Chairman discusses economic well-being

2007-02-06T14:39:00.000-08:00

Here's a recent speech by Ben Bernanke, the Federal Reserve Chairman. He discusses many of the topics that we'll cover in class including the growth in living standards over time, the tradeoff between efficiency and equity, and the effect of free trade on our economy.

Fed Chairman speech

Changing economics of Super Bowl ads

2007-02-02T12:46:00.000-08:00

This year's Super Bowl ads cost a whopping $2.6M for 30 seconds. This article shows how the internet has upped the ante on the value of these commercials. Mentions the 'Kevin Federline Effect'. I don't think anyone would have saw that coming a year ago.

from the article:
"What the highly topical Mr. Federline brings to Nationwide is instant recognition, a first leg up before the opening kickoff. The idea was to capitalize on all the recent publicity surrounding Mr. Federline’s relationship with Ms. Spears. (His recent experiences were considered a perfect way to illustrate the Nationwide ad theme, “Life comes at you fast” — and sell annuities “that could guarantee you income for life.”)

So far, the plan seems to be working. In a Nielsen BuzzMetrics survey of Super Bowl spots, released Jan. 24, the Nationwide commercial finished first, with 26 percent of all blog discussions about the ads in the game. On one day, Jan. 17, according to the survey, the Federline spot accounted for 49 percent of all online conversations about Super Bowl ads."

Colts and Bears and Kevin Federline

Should we abolish the penny? (and even the nickel)

2007-02-02T12:29:00.000-08:00

Or at least revalue it.

Now That a Penny Isn’t Worth Much, It’s Time to Make It Worth 5 Cents

2006's dumbest boss moments

2007-01-27T17:06:00.000-08:00

Some of these are pretty funny but sad since they actually happened.

Dumbest boss moments

Fascinating review of Milton Friedman and his ideals

2007-01-27T14:32:00.000-08:00

Along the way you get a great summary of economic thought in the 20th century.

Who was Milton Friedman?

Ever wanted to know the size of the federal government debt?

2007-01-23T20:21:00.000-08:00

Here it is down to the penny.

Federal Debt Down to the Penny

Another article describing our federal deficits and debt in detail:

State of the Nation- Broke

Economic policy internships

2007-01-11T22:20:00.000-08:00

Got this from the author of our textbooks himself. A bunch of great student internships in economic policy:

For students interested in economic policy, there are internship programs at the policy organizations such as the CEA, CBO, Fed, and NY Fed, and policy think tanks such as AEI, Brookings, Cato, and Heritage. This is the time of year when students should start applying.

America's dependence on oil

2007-01-04T11:45:00.000-08:00

An article about how America's dependence on oil has changed over time.

America' dependency on oil

Investment bankers have bad sex lives

2006-12-14T14:13:00.000-08:00

Harvard Business Review study polled,

"high-earning professionals with “extreme” jobs to examine how their work affected their private lives. The results showed that roughly half of those polled felt that their work interferes with a satisfying sex life, and 46 percent said their job negatively impacted their spousal relationships.

An “extreme job,” by definition, involved working at least 60 hours per week. “Extreme” workers also tended to follow unusual and unpredictable schedules, travel frequently, and hold responsibility for profit and loss. "

Force of China's impact on U.S. grows

2006-12-12T14:59:00.000-08:00

Another of many articles that you'll see these days showing the implications of our massive trade deficit.

China's Impact on U.S.

Will more money make you happier?

2006-12-09T13:03:00.000-08:00

Recent research suggests that the answer is 'not necessarily'.
From the articles:

"The belief that high income is associated with good mood is widespread but mostly illusory," the researchers wrote. "People with above-average income are relatively satisfied with their lives but are barely happier than others in moment-to-moment experience, tend to be more tense, and do not spend more time in particularly enjoyable activities."

This raises the question: If more money won't make us much happier, what will? Here are four pointers.
• Keep your commute short. Tempted to use your latest pay raise to buy a big house in a distant suburb? Don't do it.
• Choose time over money. Cutting back the hours you work will likely leave you happier, even if it means less pay.
• Think carefully about how you spend your dollars. While a new car may not boost your happiness for long, maybe a trip to Europe would.
• Use your leisure time wisely. Surveys show that leisure is better for your happiness than work. But much also depends on how you spend your leisure time.

Money and Happiness
Link between Income and Happiness

U.S. government deficits are unsustainable

2006-12-08T19:50:00.000-08:00

A pretty bleak report by the head of the Congressional Budget Office

A quote from the report:

"The basic challenge is well-known. If current trends continue and current policies remain in place, federal spending will outstrip revenues in coming decades, even if tax reductions enacted over the past few years expire, as scheduled, at the end of 2010. Deficits will increase sharply, debt held by the public will grow faster than the economy, and interest payments will soar, undermining the government’s finances and weakening the economy.

In short, the nation’s fiscal policy is on an unsustainable path, posing a long-term threat to the well-being of the American people and the country’s status in the world."

What I am reading these days

2006-12-07T22:13:00.000-08:00

Fortune's Formula by William Poundstone. A fascinating book about a few brilliant minds who turned their considerable brain power to making money in blackjack and investing.

A review from Amazon.com:

In 1961, MIT mathematics professor Ed Thorp made a small Vegas fortune by "counting cards"; his 1962 bestseller, Beat the Dealer, made the phrase a household word. With Claude Shannon, the father of information theory, Thorp next conquered the roulette tables. In this prosaic but fascinating cultural history, Poundstone (How Would You Move Mt. Fuji?) tells not only what they did but how they did it. For roulette, Poundstone shows, Thorp and Shannon used a betting scheme invented by Shannon's Bell Labs colleague John Kelly, eventually applying Kelly's technique to investing, resulting in long-term records of extraordinary return with low risk. (Thorp revealed the secret in 1966's Beat the Market, but investors proved harder to persuade than blackjack players.) Many other characters figure into Poundstone's entertaining saga: a forgotten French mathematician, two Nobel Prize–winning economists who declared war on the Kelly criterion, Rudy Giuliani, assorted mobsters, and winners and losers in all types of investing and gambling games. The subtitle is not a tease: the book explains and analyzes Kelly's system for turning small advantages into great wealth. The system works, but requires unusual amounts of patience, discipline and courage. The book is good fun for the rest of us.

Fortune's Formula

It's easy to become a millionaire

2006-12-07T21:31:00.000-08:00

Those of you who have taken my class should already understand the power of compounding. Here's yet another article that illustrates how easy it is for young people to become millionaires.

It's that easy

Gen Y entrepreneurship

2006-12-07T17:59:00.000-08:00

Interesting trend towards entrepreneurship for Generation Y'ers. Probably a result of the low barriers to entry due to the internet.

Gen Y makes a mark and their imprint is entrepreneurship

How much does Sony lose on each PS3?

2006-12-07T15:49:00.000-08:00

$240. They must be trying to make back the money on software sales royalties and trying to lower their manufacturing costs through economies of scale. They're also trying to push their Blu-ray technology so that it will be the next standard in high definition movies.

Sony loss on each PS3

More views on inequality

2006-12-06T19:33:00.000-08:00

From writer, Arnold Kling:

Diana Furchtgott-Roth writes,

Last year Americans in the lowest income quintile spent an average of $11,247 per person, according to the Bureau of Labor Statistics, compared with $15,843 for middle income quintiles, and $28,272 for the top quintile. The top group is spending only 2.5 times as much as the bottom group, and 1.8 times as much as the middle classes...
The lowest quintile is spending 14% more in 2005 than it was in 1985, the second quintile 16%, the third quintile 11%, the fourth 13%, and the top quintile is spending an additional 16%.

Just as a reminder, if you want to measure inequality, the ranking of disparities is:

1. financial wealth
2. annual earnings
3. lifetime earnings
4. consumer spending

That is, if you look at financial wealth or one year's earnings, you will see lots of disparity. If you look at consumer spending, you will see much less disparity.

Proof that imposing taxes can reduce externalities

2006-12-05T18:50:00.000-08:00

Study finds an innovative way to decrease motorists' driving and the subsequent externalities from pollution and traffic congestion.

Tolls could cut congestion

Views on economic inequality in the U.S.

2006-12-05T14:57:00.000-08:00

Two different views.

Watch how they shop

Cool-headed, soft-hearted economics

Is the SF housing market bubble proof?

2006-12-05T14:51:00.000-08:00

Apparently.

Bubble proof housing markets

How rich are you?

2006-12-02T11:52:00.000-08:00

Ever curious to see how you stack up against the world's wealthiest people? Ever feel really poor? You might be surprised by the results from this calculator.

The global rich list

Good news for college grads

2006-12-02T11:49:00.000-08:00

Looks like the job market for college grads is looking really good.

"Employers expect to hire 17.4% more new college graduates in 2006 and 2007 than in 2005 and 2006, according to a new survey by the Bethlehem, Pa.-based National Association of Colleges and Employers (NACE).

Signing bonuses range from $1,000 to $10,000, with the average at $3,568. And employers reported plans to boost their starting salary offers by 4.6% over last year, nearly a full percentage point higher than increases for the classes of 2006 and 2005."

Jobs for college grads plentiful

Potraits of Power

2006-11-16T12:49:00.000-08:00

What do Bill Gates, Condi Rice, and the MySpace founders have in common? They are proviled in this article about the 25 people who have made the most impact in 2006. The article has the catchy name: "Portraits of Power".

Portraits of Power

The man who broke the Bank of England

2006-11-15T13:05:00.000-08:00

In class this week, I mentioned the famous currency speculator, George Soros. He famously "broke the Bank of England", earning over $1 billion in a single investment move.

Read more about how he did it and his very interesting type of philanthropy here:

George Soros

Time article about Soros

Is a burrito a sandwich? Someone pays $160K for a mushroom?

2006-11-14T11:17:00.000-08:00

Some funny articles about food that I've run into recently.

First one shows the type of litigation that companies will resort to in order to maintain barriers to entry in their particular markets. Panera Bread apparently sued a shopping mall claiming that "a burrito is a sandwich". "The difference, the judge ruled, comes down to two slices of bread versus one tortilla."

Read about the details here:

Is a burrito a sandwich?

Second one reports that a Hong Kong property tycoon recently purchased a rare white mushroom, which he will eat, for the unbelievable sum of $160K!

A $160K mushroom?

What happened to the budget surplus?

2006-11-13T14:50:00.000-08:00

Back in 2001, the government predicted a budget surplus of $5.6 trillion between 2002 and 2006. So, what happened to that surplus? This table from the CBO illustrates how recent policies and incorrect forecasting led the government from a $5.6 trillion surplus to a deficit estimated at $2.9 trillion!

Note the two largest factors: $1.8 trillion in tax cuts and $1.6 trillion in increased defense spending.

Cracking the college admissions code

2006-11-09T14:47:00.000-08:00

For those of you applying to four-year colleges, I ran into this article summarizing the basics of the college application process.

Cracking the college admissions code

Economic challenges for the future

2006-11-08T17:22:00.000-08:00

Now that the election is over, what are some of the main economic challenges this country faces? The budget deficit, health care spending, global warming, and living standards.

Time to tackle reality

Trade dilemnas facing the U.S. and China

2006-11-07T12:34:00.000-08:00

Nice analysis of the consequences of our huge trade deficit and the corresponding problems that China faces with its huge trade surplus.

Trade traps facing US and China

Trade deficit hits record in August

2006-11-07T12:01:00.000-08:00

Here is the article I showed you in class this week regarding the record trade deficits we are incurring.

Trade deficit hits record

Best jobs and employers in America

2006-11-07T11:58:00.000-08:00

Thought this was kind of interesting. I like the #2 best job in America...

Best Jobs in America

Here's a list of the top 100 employers.

Best Employers

A measure of economic profit

2006-11-06T19:58:00.000-08:00

In our recent micro classes we've discussed the distinction between economic profit and accounting profit. Here's a company that trying to measure "true profit", a measure very close to the idea of economic profit.

Measuring true profit

Great finance books

2006-11-06T16:19:00.000-08:00

For those of you interested in finance and investing. I've updated my instructor website (link to the right) with some new finance book recommendations- under "Finance".

A great one I've been reading is The Future for Investors by Jeremy Siegel.

Future for Investors

Young voters can make a difference

2006-11-03T16:27:00.000-08:00

A recent poll indicates that 32% of voters aged 18 to 24 plan to "definitely vote". If this pans out, it would be a record. The previous record turnout by that age group for a midterm election was set in 1982 — 26.6%.

Also, check out this article about how young people are becoming more involved with the world around them. This is a great development for generation Y. This article features an 18-year old Los Gatos resident who's now a freshman at American University.

Make sure everyone votes this November 7!

Poll suggests young voters could sway election results

Generation Y gets involved

The dollar must depreciate

2006-11-01T12:50:00.000-08:00

This week we learned about the causes and consequences of the huge U.S. trade deficit. Here's an article that nicely sums up the issue and predicts that the dollar is in for some sort of depreciation in the future.

Gambling against the dollar

Great way to illustrate velocity of money

2006-10-31T12:06:00.000-08:00

So in class today we discussed the 'velocity' of money, in other words, the number of times money is exchanged in transactions throughout a period of time.

Check out this webpage which actually tracks dollar bills as they are moved throughout the country. Pretty fascinating and illustrates exactly what we mean by velocity.

Where's George

High growth in the last five years not helping middle class

2006-10-30T13:43:00.000-08:00

Great article outlining how the spectacular economic growth we've experienced in the last five years have primarily helped the very wealthy and the very poor. Who gets left out- the middle class.

Larry Summers Comments on Economic Growth

What is the secret to success and Condi Rice is a concert-level pianist?

2006-10-24T12:22:00.000-07:00

Turns out it's not natural-born talent but a lot of hard work.

What it takes to be great

Also, did you know that Secretary of State Condi Rice is also a concert-level pianist. Check out this article about polymaths and see the resume of a top-level executive of Citigroup who has "been, at varying points of his life, a brigadier general in the Army, a partner at Lehman Brothers, head of consulting at Bain, a Rhodes Scholar, and a student at Princeton's Woodrow Wilson School, where he earned his Ph.D. Also: a Heisman Trophy winner (in 1958)"

Crosstrain your brain

CA Community Colleges making higher education more affordable

2006-10-24T12:20:00.000-07:00

California community colleges are leading the way in providing affordable higher education.

From the article:

The best news came for people at the nation's public two-year colleges, which educate nearly half of American college students. There, tuition and fees rose just 4.1% to $2,272. The increase was limited by California, which is home to more than a fifth of the nation's two-year public college students and lowered tuition and fees 12% this year. Elsewhere, prices rose 5.1%.

Tuition and fees at private four-year colleges rose 5.9% overall, to $22,218.

College Tuitions Up 6%

Perspectives on the minimum wage

2006-10-22T19:26:00.000-07:00

Some great perspectives on whether it makes economic sense to raise the minimum wage.

Minimum wage

US Defense Spending - smaller than we think?

2006-10-22T19:23:00.000-07:00

Thought this was interesting. Apparently, despite the fact that current defense spending is very high in absolute dollar amounts, spending as a percentage of GDP has actually fallen significantly throughout the last 60 years.

Our small defense budget

US population hits 300 million

2006-10-18T17:09:00.000-07:00

What does this mean for the future of young people? This article predicts higher taxes and a higher retirement age for young people.

Population hits 300 million

Now here's some high opportunity cost of going to school

2006-10-17T11:10:00.000-07:00

A great example of when the opportunity cost of going to school can be very very high.

The third YouTube founder

Stocks are rising

2006-10-16T14:36:00.000-07:00

It's only a matter of time before the Dow hits 12,000.

Dow Just Below 12,000

Here's a quick overview of the types of mutual funds that have done well over the last few years.

Bull market kinder to some funds than to others

One example of when unions can do good

2006-10-13T15:36:00.000-07:00

Remember that in some cases, labor unions can counter the power of large corporations to take advantage of workers.

Walmart forced to pay $78M

Nobel Peace prize goes to an economist

2006-10-13T11:19:00.000-07:00

Very cool. An economist wins the Nobel Peace prize for his work in trying to increase economic growth in developing countries. His novel idea was to offer micro credit (or very small loans) to individual people in poor countries. It has been shown to be very effective at lifting people out of poverty.

Nobel Peace Prize goes to economist

US Trade deficit hits record

2006-10-12T12:53:00.000-07:00

The US hit another record trade deficit in August. We'll learn later what effect this will have on the economy.

Trade deficit hits record

Google acquisition of YouTube

2006-10-11T13:31:00.000-07:00

Google's acquisition of YouTube shows how much the high tech landscape of funding has changed since 2000.

Google acquires YouTube

Nobel Prize Winner critiques use of GDP

2006-10-10T22:26:00.000-07:00

Interesting article by a former Nobel prize winner. He critiques the use of GDP as a measure of economic well-being because it does not take into account the depletion of our natural resources and the environment. He advocates using "green GDP" instead of conventional GDP. Reminds me of the lessons we learned in the second week of class.

Green GDP

California Ballot Propositions

2006-10-10T17:15:00.000-07:00

Be an informed voter and review the pros and cons of each of the propositions on the ballot for this November 7. Don't forget to exercise your right to vote!

California Ballot Propositions

2006 Nobel prize announced

2006-10-10T14:46:00.000-07:00

On Monday they annouced the winner of the Economics Nobel prize this year, Edmund Phelps. Later this semester, we'll learn about Phelps' Nobel-prize winning concept of the long-run relationship between inflation and unemployment.

American Wins Economics Nobel