Carpe Diem

Sunday night links

1. Eagle Ford Oil Production Growing Faster Than Expected: What was predicted in 2011 as production for 2016 was already surpassed in 2012.

2.  Greg Mankiw: If I could pick just one stock for someone to buy, I would now suggest the Vanguard Total World Stock exchange-traded fund. In one package, you can get low cost and maximal diversification.

3. China is reluctant to use stimulus to counter slowdown, instead prefers market mechanisms to aid growth, like cutting red tape.

4. Ward’s Auto: North American Light-Vehicle Production Was Up 13.7% in April vs. Year-Ago.

5. VIDEO: Eric Holder Has No Idea – I don’t know, I don’t know, I don’t know…..

6. Jay Leno explains the current situation in Washington….

7. Sheldon Richman: Abolish the IRS (and the Income Tax With It).

8. We’ve become a Nation of Slobs, e.g. shorts and flip-flops are now fine for any occasion, people wear pajamas and slippers to the grocery store, even women like Oprah don’t bother to cover their cleavage any more, etc.

9. Solar initiatives and mandates in MA provide only a tiny addition to electricity supply at a high cost to citizens.

Carpe Diem

Quotation of the day: Pessimists are wrong

“Pessimists may be paying too little attention to the strength of the underlying economic and social forces that generate innovation in the modern world, Both humanity’s capacity to innovate and the incentives to innovate are greater today than at any other time in history. As trade and globalization increase the size of the potential market for new products, the possible economic rewards for being first with an innovative product or process are growing rapidly.”

~Ben Bernanke

Carpe Diem

Midland, Texas: The most economically successful MSA in the country, thanks to the shale oil boom in Permian Basin

midlandAs a direct result of all the shale oil and gas activity in the Permian Basin area of West Texas, the economy of Midland, Texas is booming. The April unemployment rate in Midland fell to 3%, which is the lowest jobless rate in the nation for any of the 372 metropolitan areas. During just the month of April, 1,000 jobs were added to local payrolls in Midland (50 per day), and 400 of those jobs (20 per day) were in the booming “construction, natural resources and mining” sector. Over the last year, total employment in Midland has increased by almost 7% (and by 5,500 jobs) to a new all-time high of 85,400, and energy and construction related jobs increased by 14.4% (and by 3,100 jobs), also to a new all-time high (see chart above).

Along with the oil and gas boom, there’s an unprecedented construction boom taking place in Midland, and building permits in March skyrocketed to 347, which was a 580% increase from the level a year ago and established a new all-time record high.

Jobless recovery? Middle-class stagnation? Declining household income? Sub-par economic growth? Construction slowdown?  None of that applies to Midland, Texas, the most economically successful metropolitan area in the country, thanks to the shale revolution.

See related news story here.

 

Carpe Diem

Art Laffer: Obama scandals are phenomenal for stocks


From The Kudlow Report last night:

Larry Kudlow: Are the Obama scandals good for stocks?

Are Laffer: They’re terrific for stocks, Larry. We need a change in economic policy, and there is no better change than if we take the Senate in 2014, and then the presidency in 2016 – that would be phenomenal for stocks. This administration is bad for the economy, and it’s bad for stocks. When they trip, especially at the IRS, it just doesn’t get any better than that for the future of the country.

Carpe Diem

Quotation of the day: From jerky to dirty

“We are in the midst of the worst Washington scandal since Watergate. The reputation of the Obama White House has, among conservatives, gone from sketchy to sinister, and, among liberals, from unsatisfying to dangerous. No one likes what they’re seeing. The Justice Department assault on the Associated Press and the ugly politicization of the Internal Revenue Service have left the administration’s credibility deeply, probably irretrievably damaged. They don’t look jerky now, they look dirty. The patina of high-mindedness the president enjoyed is gone.”

~Peggy Noonan writing in today’s WSJ, “This is No Ordinary Scandal

Carpe Diem

Friday afternoon links

1. The U.S.-Colombia Trade Agreement on Its First Anniversary:  Between May 2012 and March 2013, U.S. merchandise exports to Colombia grew to $15.9 billion — a 20% increase from the same period a year earlier. More here.

2. TED TALK: Hans Rosling and the magic washing machine (2010) – the greatest invention of the Industrial Revolution.

3. Unfortunately, the magic washing machine hasn’t yet reached Cuba in large numbers. Blogger Yoani Sanchez reports that “Cuba’s Supposedly ‘Emancipated’ Women Are Still Boiling Their Babies’ Diapers Over Fires,” and that washing machines, when available in Cuba, cost an entire year’s salary (versus about 2.5 days’ earnings for the average American).

4. In a victory today for free trade and common sense, the Energy Department Authorized a Second Facility to Export Liquefied Natural Gas. Let’s hope there’s a lot more.

5. The Reuters/Univ. of Michigan Consumer Sentiment Index rose to 83.7 in May – the highest level in almost six years – as rising real estate values and record stock prices boosted household wealth.

6. The Conference Board reported today that its Leading Economic Index increased 0.6% in April to the highest level since June 2008, reflecting underlying strength in the US economy moving forward.

7. From today’s BLS report on state employment and unemploymentOil-rich North Dakota led the US with the highest year-over-year job growth in April at 3.74%, and oil-rich Texas wasn’t far behind at 3.01%. Once again, North Dakota had the lowest state jobless rate in the country at 3.3% in April.

8. Video from Reason.TV: Parents, Pot, and Prohibition: Daisy Bram’s Story. Grow some weeds not approved of by the government, and they might just come and take your children away.

9. 2013 Drug War Killings Update: California man becomes the 13th person to die in US domestic drug law enforcement operations so far this year. 

10. From NPR: In the Cape Cod community of Falmouth, voters will decide if two, town-owned wind turbines will be taken down. Dozens have complained of headaches, insomnia and other issues since the first turbine started spinning in 2010.

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