Major CD Announcement

Dear Carpe Diem Regulars: Over the next several days, there will be some major changes taking place for the Carpe Diem blog. After six years, almost 10,000 posts, and more than 8 million visits and almost 12 million page views using the Blogger platform, Carpe Diem will become a WordPress blog at a new website. Starting within the next few days, Carpe Diem will be exclusively hosted by The American Enterprise Institutes's new AEIdeas website, which also features Jimmy Pethokoukis's blog as well as other AEI blog "channels" by topic (Economics,...

Read More

National Home Sales Snapshot from DQ News

Click to enlarge. Today's "National Home Sales Snapshot" from DQ News is displayed above, which has been updated with U.S. home sales during the last 30 days in 98 of the top 100 MSAs (excludes Louisville and Wichita), and covers about two-thirds of all U.S. home sales.  Compared to the same period last year, home sales over the last 30 days have increased by 9.8%, following previous increases in September of 11.3% (last week) and 10.3% (first...

Read More

Quotation of the Day: The Fallacy of Redistribution

From Thomas Sowell's column today (emphasis mine): The history of the 20th century is full of examples of countries that set out to redistribute wealth and ended up redistributing poverty. The communist nations were a classic example, but by no means the only example.In theory, confiscating the wealth of the more successful people ought to make the rest of the society more prosperous. But when the Soviet Union confiscated the wealth of successful farmers, food became scarce. As many people died of starvation under Stalin in the 1930s as died in...

Read More

Wednesday Afternoon Links

1. Markets in everything: WiFi enabled, multi-color, energy efficient LED light bulb that you control with your iPhone.2. "Patchwriting" is more common than plagiarism, and just as dishonest.  I guess that's what happened to me, see recent CD post. 3. Almost half (46.3%) of Irish residents buy private health insurance, despite "free" national health insurance.4. Thanks to the commodity boom, 2012 graduates from the South Dakota School of Mines make more on average than Harvard grads, $56.7k vs. $54.1k.5. New website archives every TV...

Read More

The Year of the "Plow Horse Housing Recovery"

Some key reports today on architecture billings, existing home sales, and new residential construction provide additional evidence that a U.S. housing recovery is underway:1. Reuters --  "A leading indicator of U.S. construction activity rose last month to its best level in five months, indicating that demand for design services is expanding, an architects' trade group said on Wednesday. The Architecture Billings Index (ABI) rose 1.5 points to a reading of 50.2 in August, according to the American Institute of Architects. Any reading above...

Read More

Year of the Recovery: August Home Sales Boom

1.  Wisconsin home sales increased 20.3% in August, median sales price by 2.9%.2. Kalamazoo MI housing market shows highest sales volume since 2007, August home sales were up 14%, average sales price by 7.5%.3. Louisville area home sales up 26% in August over last year, median sales price by 3.7%.4. Chicago-area home sales increased 26.5% in August above last year, and were the highest August sales total since 2007.  ...

Read More

Builder Confidence Index Rises in September to 6-Yr. High, With Largest 12-Month Gain in History

From today’s report from the National Association of Home Builders:September 18, 2012 – Builder confidence in the market for newly built, single-family homes rose for a fifth consecutive month in September to a level of 40 on the National Association of Home Builders/Wells Fargo Housing Market Index (HMI).  This latest three-point gain brings the index to its highest reading since June of 2006 (see chart above). “This fifth consecutive...

Read More

Fire: Environmentalist's Way to Thin the Forests

From Terry Anderson's editorial in today's WSJ "Environmental Protection Up in Smoke":  Environmental laws since the 1970s require public input into federal land-use decisions including logging on national forests. This has led to lawsuits challenging efforts by the U.S. Forest Service to prevent forest fires by thinning out trees (most of which are dead or diseased) and brush by machines and carefully controlled burns. This dead wood is the fuel that feeds catastrophic wildfires. Removing the fuel reduces the likelihood of fires, and...

Read More

Top 10 Most Expensive College Football Tix 2012

From CNBC, based on tickets being sold in the secondary market on StubHub, Ticket Network, eBay, etc. and aggregated by Tiq...

Read More

Housing Affordability is Historically Very High

A recent analysis by Trulia concluded that buying a home today is 45% cheaper on average compared to renting a comparable home, see CD post here. That post generated a lively discussion with about 100 comments, and some questioned some of Trulia's assumptions and analysis (or lack of some key assumptions), although I think the general conclusion is valid that buying a home is relatively affordable today compared to renting a similar home -whether...

Read More

2012: The Year of the Housing Recovery, Update

DataQuick -- "An estimated 41,280 new and resale houses and condos sold in California last month, making it the strongest August since 2006. Last month's sales total was up 4.5% from 39,507 in July, and up 9.4% from 37,734 sales in August 2011." "The median price paid for a home in California last month was $281,000, the same as the month before and up 12.9% from $249,000 in August 2011. The July and August median was the highest since September 2008, when it was $283,000. August marked the sixth consecutive month in which the state's median...

Read More

Classic 1978 Milton Friedman Lecture on Trade

 In the above 1978 lecture at Kansas State University, Milton Friedman discusses free trade, and explains why trade protection and interference in international trade are so widespread, despite the almost universal condemnation of such measures by the economics profession.Professor Friedman also addresses the political obsessions with: a) increasing exports (e.g. President Obama’s goal to double exports by 2015) and b) achieving a “favorable balance of trade.” Here’s a quote from Friedman’s lecture, demonstrating the timeless nature...

Read More

Occupational Licensing Gone Wild

From the Bloomberg article "Why Is It So Hard to Become a Cosmetologist in America?""The average cosmetologist in the U.S. trains for 372 days before earning a license. The average emergency medical technician spends 33 days in training. From this, one might conclude that Americans are obsessed with primping but tragically unprepared for emergencies." "Actually, the disparity merely confirms what a muddle the process of occupational licensing is....

Read More

Quotation of the Day: A Duty Is a TAX on Imports

From Don Boudreaux's open letter to Mitt Romney: Your wish to “label China a currency manipulator” means that you seek a pretext to impose (as your website says) “countervailing duties” on imports from China – which is to say, you seek a pretext for raising taxes on Americans who buy goods and services from China. Yet in other episodes of your campaign you promise (as you did here* last month) “I will not raise taxes on the American people. I will not raise taxes on middle-income Americans.” If you keep your promise to impose countervailing...

Read More

Grisly Drug War Fact of the Day

"The American news media continues to report the body count in Mexico’s “War on Drugs” at more than 50,000 dead. But Molly Molloy, a researcher at New Mexico State University, tallies more than 100,000 Mexicans killed to wage a war financed and mandated by American authorities and led by Mexican president Felipe Calderón."From the article "Mexicans Pay in Blood for America's War on Drugs."  Note: That would be a casualty count that approaches the U.S. body count during WWI (116,500 deaths) and more than the combined American casualties...

Read More

Buying a Home Is Now 45% Cheaper Than Renting

Here's another reason that the U.S. housing recovery is real and sustainable - buying a home is now 45% cheaper than renting, according to an analysis done by Trulia and reported here by its chief economist Jed Kalko: Methodology: Trulia looks at homes listed for sale and for rent on its website, and compares the average rent and asking price for an identical set of properties in a metro area, for a direct apples-to-apples comparison. Then, Trulia factors in the total costs of homeownership (e.g., closing costs, maintenance, insurance, taxes,...

Read More

2012: The Year of the Housing Recovery; Exhibit A: The Minneapolis-St. Paul Housing Market is HOT

The chart above provides evidence of the significant recovery going on in the Minneapolis Area real estate market, based on new data for market activity there in August:1. Closed home sales during the month of August in the Twin Cities increased by 12.3% above last year, and by 45.6% above two years ago. On a year-to-date basis, the 27,413 homes sold so far this year is the highest for any January-August period since 2006. 2. Pending home...

Read More

CD Post Re-Written by a Montana TV Station?

Read this CD post from last Wednesday on North Dakota oil output in July, and then read this news report posted yesterday by TV station KTVQ in Billings, Montana, and notice these similarities (especially the last comparison):CD: North Dakota pumped another record amount of crude oil during the month of July at a rate of more than 674,000 barrels per day.KTVQ: In July, North Dakota pumped a record amount of crude, at a rate of more than 674,000 barrels a day.CD: The state’s oil production in July was 59% above a year ago.KTVQ: Compared to a year...

Read More

Great Moments in Government Regulation: Massage a Horse in Nebraska, Go to Jail for Up to 20 Years

The Institute for Justice is reporting that a woman in Nebraska could face up to 20 years in prison for massaging horses without a license.“That’s the absurd fate Karen Hough could face if she wants to continue her business in Nebraska. A certified instructor, Karen has been massaging horses for years. Massaging a horse is believed to deliver many health benefits, including relieving tension, improving circulation, and alleviating muscle fatigue.”“Earlier this year, she applied for a license in equine massage but was told only veterinarians...

Read More

Market, Real Estates Updates

1. DQ News -- "Southern California home sales rose to the highest level for the month of August in six years, fueled by low mortgage rates, a healthier move-up market and near-record levels of investor and cash buying. The median price paid for a home rose to a four-year high, lifted partly by the ongoing shift toward fewer foreclosure resales and more mid- to high-end deals." MP: August home sales in Southern California increased 14.2% compared to last year, and the median sales price increased by 10.8% to the highest level since August...

Read More

Upcoming Documentary on America's Longest War: The War on Drugs, "A Holocaust in Slow Motion"

 The soon-to-be-released documentary "The House I Live In" is an inside look at America's longest war, The War on Drugs, from executive producers Danny Glover, John Legend, Russell Simons. From the film's website:"Filmed in more than twenty states, THE HOUSE I LIVE IN tells the stories of individuals at all levels of America’s War on Drugs. From the dealer to the narcotics officer, the inmate to the federal judge, the film offers a penetrating look inside America’s criminal justice system, revealing the profound human rights implications...

Read More

Photo of the Day: Ben Bernanke As a Child Preparing for His Future Role as Fed Chair

QE Forever HT: ...

Read More

2012: The Year of the Housing Recovery, Updated

1. "The number of improving housing markets across the country rose to 99 in September, according to the National Association of Home Builders/First American Improving Markets Index (IMI), released this week. This is up from 80 metros that were listed as improving in August and includes representatives from 33 states as well as the District of Columbia. The IMI identifies metropolitan areas that have shown improvement from their respective troughs in housing permits, employment and house prices for at least six consecutive months."Barry Rutenberg,...

Read More

North Dakota Oil Production Sets Records in July, Monthly Output Exceeds 20m Bbls. for First Time

The “Economic Miracle State” of North Dakota pumped another record amount of crude oil during the month of July at a rate of more than 674,000 barrels per day, according to data released today by the state’s Department of Mineral Resources. Oil production during the month of July exceeded 20 million barrels for the first time in state history, establishing a new record for monthly oil output. Here are some other highlights of North Dakota’s record-setting...

Read More

Markets in Everything: Pay Somebody to Take Your Online Classes, Get an A 99% of the Time

You can now hire somebody to take your online classes, with a 99% chance of getting an A: "WeTakeYourClass.com is a site dedicated to helping students with online classes. I’m sure you are here because you are wondering “how will I have time to take my online class?” It may be that one class such as statistics or accounting. We know some people have trouble with numbers. We get that. We are here to help. We offer an affordable solution, which includes having a tutor take your class for you. Whether it’s one test, homework, project, or...

Read More

Markets in Everything: Free-Range Play Time

ABC News -- "Parents in New York are raising their eyebrows at the latest after-school activity offered for their children: unsupervised play time in Central Park for $350 (for eight 90-minute sessions)." "Lenore Skenazy, a former journalist who has championed the "free play" movement, cheekily launched the after-school program to try and encourage parents to let their children to play without structure or supervisio...

Read More

Markets in Everything: Peer-to-Peer Car Repair

From the YourMechanic website: "Our mechanics come to you! Think of us as the AAA of car mechanics. We help you find the right mechanic, find fair price of the services, book an appointment, pay for services, and get your car fixed at the convenience of your home or office." "At repair shops and dealerships, mechanics make very little money ($15-$25 an hour) even though you pay anywhere b/w $80-$150 an hour. We connect you directly with independent mechanics. You pay less, mechanics make more and we get a small transaction fee. It is a Win-Win...

Read More

Markets in Everything: Shared Commuting Buses; "The Google Shuttle Buses For the Rest of Us"

From the RidePal website: Recruit and retain top talent. Give your employees a commute experience they look forward to. Ridepal takes all the hassle out of getting employees from home to work and back again, safely and comfortably.  RidePal offers state-of-the-art shared commuting buses with wi-fi along with a ticketing, reservation and management platform. It makes it convenient, enjoyable and productive for people...

Read More

Advances in Drilling Technologies Lower Costs

EIA's "Today in Energy" reports on how "Developments in drilling methods and technology are leading to efficiency gains for oil and natural gas producers":1. "For example, "pad" drilling techniques allow rig operators to drill groups of wells more efficiently, because improved rig mobility reduces the time it takes to move from one well location to the next, while reducing the overall surface footprint. A drilling pad is a location which houses...

Read More

August Home Sales Show Double-Digit Gains

Local reports are coming in for August home sales and so far they're all showing double-digit gains from last year, here's a sample:1. Milwaukee -- Sales of existing homes rose 21% in August in the metro Milwaukee area, extending a string of 14 year-over-year monthly increases that is reducing the inventory of homes on the market. Through the first eight months of 2012, sales were up 27.7%.2. Baltimore -- Home sales were the highest for the month of August since 2007, with a 17.5% year-over-year increase.  Pending sales in August were up...

Read More

Mfg. Profits Are 35% Above Pre-Recession Levels

U.S. manufacturers had another solid quarter of profits from April to June, according to data released today by the Census Bureau.  The total after-tax profits for American manufacturing corporations totaled more than $149 billion in the second quarter, a slight increase from $148.2 billion in the first quarter of 2012, but down slightly from the all-time quarterly high of $153.4 billion of profits in the second quarter of 2011 (see chart...

Read More

Cartoon of the Day: American Politics

...

Read More

Society Needs a Little Classing Up

Columnist Andy Heller attended a Broadway show recently for the first time in 20 years, and writes in the Sunday Flint Journal ("If you ask me, society needs a little classing up") about what appears to be America's declining standards of fashion and manners in Broadway theaters, including rampant "cellphoneitis," people dressing like slobs, and rude talking during the performance. Here's Andy's conclusion:"I think it's sad. I'm as casual as they come, but even for me things have gone too far. As a society, we need to class it up a bit. You can...

Read More

Sunday Morning Links

1. Nashville Home sales Increase 27.3% in August, and in Denver by 18%. 2. 3D printed guitar.3. Current 2012 Electoral Map Based on Intrade Contracts for Each State: 303 Obama, 235 Romney. 4. As A/C Coolant Is Phased Out in the U.S., Smugglers Reap Large Profits in the Black Market.5.  It's Been Almost A Year Since ECRI's Lakshman Achuthan Made His Recession Call, and ECRI's Weekly Index Has Risen in Each of the Last Five Weeks?6.  At Top Business Schools, an MBA Application Drought....

Read More

Amazon Economics: The Amazon Doctrine

 In the video above, Normal 0 false false false EN-US X-NONE X-NONE while unveiling the new Kindle Fire HD tablets, Amazon CEO Jeff Bezos explains one the reasons for Amazon's amazing success starting about 1:05:00, it's called:The Amazon DoctrineAbove all else, align with customers. Win when they win. Win only when they win. That's Amazon's corporate version of consumer sovereignty, explained here as "profit-seeking sellers find...

Read More