Sharp Downward Revision Of US Q4 Growth (02/28)
" The bounce-back during the fourth quarter seems to have been a mirage; revised data have cut GDP growth from 3.5% to 2.2%, little different from the 2.0% of the third quarter.” Examine the 4th quarter GDP revision and discuss why a higher measure of gross domestic "purchases price index” means a lower measure of “real” GDP (Report). Review Fed Chairman Bernanke’s comment on the US economic growth before the US House Committee on the Budget (Testimony). Given the 4th quarter GDP revision, discuss if the Congressional Budget Office (CBO) may need to revise their long-term budget projections (Projections).
Consumer Prices Post Surprise Gain, But…(02/21)
"Consumer prices rose a bit more than economists had expected in January, according to a government report Wednesday, but the numbers don't necessarily point to a huge pickup in inflation.” Examine the latest Consumer Price Index Summary report from the Bureau of Labor Statistics (Report). Assess if “readings on core inflation have improved modestly” (Trend) as suggested by the December Federal Open Market Committee statement (Analysis). Study the December Industrial Production and Capacity Utilization measures (Measures) and discuss if inflationary pressures are “easing” as suggested by Fed Chairman Ben Bernanke when he testified before Congress in the previous week.
XM AND SIRUS To Merge (02/19)
"XM Satellite Radio and SIRIUS Satellite Radio today announced that they have entered into a definitive agreement, under which the companies will be combined in a tax-free, all-stock merger of equals with a combined enterprise value of approximately $13 billion, which includes net debt of approximately $1.6 billion.” Discuss how the “combined enterprise” may generate efficiency in terms of reducing its production costs. Examine the quarterly XM financial performance trend (Trend). Discuss how this merger may help XM and SIRUS to reduce its “total operational expenses” in relation to “revenue”. How will this merger affect consumers (Affects)?
Hershey To Cut Jobs, Send Some Manufacturing To Mexico (02/15)
"Hershey is cutting 1,500 jobs over three years as part of a plan to scale back production and move some manufacturing to Mexico, the candy maker announced Thursday.” Discuss why firms strive to reduce their production costs. Examine how Hershey plans to transform its global supply chain to generate significant cost savings (Presentation). Study international comparisons of hourly compensation costs for production workers in manufacturing and discuss why Hershey decided to move some of its manufacturing to Mexico (Data).
Bernanke: Economy Healthy, But…(02/14)
"As we anticipated in our July report, the U.S. economy appears to be making a transition from the rapid rate of expansion experienced over the preceding several years to a more sustainable average pace of growth.” Review the Federal Chairman Bernanke’s assessment of the US economy. Examine to see if “real activity in the United States expanded at a solid pace” (GDP) and “the demand for labor has remained strong” (Employment). Finally, confirm if “readings on core inflation…have improved modestly in recent months” (Core CPI). Assess the overall performance of the US economy (Fed’s View) and determine if the current monetary policy stance of “no change” in short term interest rates is appropriate.
Most Lucrative College Degrees (02/08)
"Members of the college Class of 2007 preparing to enter the working world upon graduation have good reason to be hopeful, according to a new report published by the National Association of Colleges and Employers (NACE).” Examined the latest report published by the National Association of Colleges and Employers. Discuss why “higher education” means “more marketable career opportunities” that translate into “higher salaries and benefits” (Education). Analyzed the U.S. Census data and determine if there is a clear relationship between earnings and education (Data).
$2.9 Trillion Budget (02/05)
"President Bush proposed more than $700 billion in spending Monday for the U.S. military - much of it for the Iraq war - in a budget that would curb domestic programs from health to education.” Go over the highlights of 2008 federal budget as proposed by President Bush. Discuss what assumptions are made in order to reach a balanced budget within five years (Assumptions). Examine the basic numbers behind the budget and consider if the underlying assumptions are reasonable (Numbers). Review the concept of opportunity costs and discuss how the increase in defens e spending may affect domestic programs (Trade Off).
Slower January Job Gains (02/02)
"Nonfarm payroll employment rose by 111,000 in January, and the unemployment rate was essentially unchanged at 4.6 percent, the Bureau of Labor Statistics of the U.S. Department of Labor reported today.” Review President Bush’s report on the state of the economy and jobs (Report). Discuss if the employment condition is posed to remain strong in the coming months (Analysis). Explain how the official unemployment rate can increase particularly when the employment condition improves (Hint. Participation Rate).
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