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Economic and and financial news and analysis

Why the Fed Must Taper

The Fed is being forced to end its bond-buying, cutting off the “free money for financiers” that has sustained a frothy stock market.While the Federal Reserve presents itself as free to do whatever it pleases whenever it pleases, the reality is the Fed…

Following Up: Manufacturing Cheerleaders that Neglect Productivity

falling wages should only be seen as a sign of improved U.S. manufacturing competitiveness only in the most shortsighted Darwinian sense. As I wrote in a post yesterday, unless Washington proposes to inundate the economy with another flood of bubble-era like super-cheap credit, or figures out a way to foster a wholly unprecedented jump in net exports, the U.S. economy will never be able to grow if worker wages keep stagnating or falling.