Thu 2010-08-26 09:03 EDT

Why Doesn't the United States Have a European-Style Welfare State? | The Weatherhead Center for International Affairs

Alesina, Alberto, Edward L. Glaeser, and Bruce Sacerdote

European countries are much more generous to the poor relative to the US level of generosity. Economic models suggest that redistribution is a function of the variance and skewness of the pre--tax income distribution, the volatility of income (perhaps because of trade shocks), the social costs of taxation and the expected income mobility of the median voter. None of these factors appear to explain the differences between the US and Europe. Instead, the differences appear to be the result of racial heterogeneity in the US and American political institutions. Racial animosity in the US makes redistribution to the poor, who are disproportionately black, unappealing to many voters. American political institutions limited the growth of a socialist party, and more generally limited the political power of the poor. [2001 Brookings Papers on Economic Activity; pdf downloaded]

European-Style Welfare State; internal affairs; United States; Weatherhead Center.

Dr. Housing Bubble Blog Fri 2010-07-30 15:22 EDT

Banks cherry picking individual foreclosures that show up on the MLS in Culver City and Pasadena with proof: Southern California lenders pushing out properties in Culver City with an average price tag of $300,000. Median sale price for city is $600,000. Shadow inventory average price is $443,000 with loans at an average of $552,000. 141,000 homes in Southern California are distressed yet MLS only reflects 83,000 total properties.

...Prices even today are disconnected from market fundamentals. Inventory is still growing and the shadow inventory figures remain elevated...The bulk of properties are sitting hidden in bank balance sheets and are part of the shadow inventory...For Pasadena, for every one listed foreclosure or short sale, you can be assured that there are 5 other properties sitting in the depths of a bank balance sheet. Keep in mind this is for a highly desirable area...the numbers look nearly the same in Culver City. For every one distressed property on the MLS, you have 5 others hidden in some bank balance sheet. Now when I look at this data what I see is a façade in Southern California real estate...Banks are basically trying to avoid facing the music and realizing the reality that these properties are overpriced (people can't even keep up with their payments). Does any of this data look like a healthy market?

000; 000 home; 000 total properties; 141; 300; 443; 552; 600; Average; average price tag; Banks cherry picking individual foreclosures; Citi; Culver city; distressed; Dr. Housing Bubble Blog; Loans; median sales price; MLS; Pasadena; proof; property; reflects 83; Shadow inventory average price; showed; Southern California; Southern California lenders pushing.

Tue 2009-01-06 00:00 EST

Jesse's Café Américain: US Treasuries and our Horribly Distorted International Currency Exchange Mechanism

Jesse's Café Américain: US Treasuries and our Horribly Distorted International Currency Exchange Mechanism; ``The key to recovery is the median real hourly wage, not the further expansion of credit and the perpetuation of an economic system based on an inefficient drag on economic growth by percentage-taking banks and rent-seeking elites who add little or no productive value.''; James Grant: Insight: Return-free risk

Horribly Distorted International Currency Exchange Mechanism; Jesse's Café Américain; Treasury.

Tue 2008-07-22 00:00 EDT

Hussman Funds: Experimenting with the Market's Median Valuation

by William Hester

experiment; Hussman Funds; Market's Median Valuation.