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The Broken State Fallacy - "No, Hurricanes Are Not Good For The Economy"

The Broken State Fallacy - "No, Hurricanes Are Not Good For The Economy"

Authored by Caroline Baum via MarketWatch.com,

Yes, GDP may get a temporary boost from rebuilding, but there’s nothing positive about destruction

Once the immediate danger of a natural disaster subsides, and the loss of life, property damage, cost of rebuilding, and degree of insurance coverage can be assessed, attention generally turns to the economic effect. How will Hurricane Harvey affect the nation’s gross domestic product?

Fed Study Confirms Phillips Curve Is Useless: Admitting The Bloody Obvious

Fed Study Confirms Phillips Curve Is Useless: Admitting The Bloody Obvious

Authored by Mike Shedlock via MishTalk.com,

The Phillips Curve, an economic model developed by A. W. Phillips purports that inflation and unemployment have a stable and inverse relationship.

This has been a fundamental guiding economic theory used by the Fed for decades to set interest rates.

A new Fed Study shows the Phillips Curve Doesn’t Work.

RBOB Stable at 2-Year Highs After Big Crude Draw, Surprise Gasoline Build

RBOB Stable at 2-Year Highs After Big Crude Draw, Surprise Gasoline Build

RBOB gasoline closes at a 2-year high (and WTI tested down to a $45 handle) as all attention is focused on the duration and impact of the storm (and how long refineries will be closed). Tonight's API data should not be market-moving since it relates to data from before Harvey but showed a big crude draw and modest (surprising) gasoline build once again.

 

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