California is hanging in

DALLAS, March 28, 2013 /PRNewswire/ -- Comerica Bank's California Economic Activity Index dropped in January, falling 2.2 points to a level of 98.6. January's reading is 25 points, or 35 percent, above the index cyclical low of 73.2. The index averaged a revised 103 points for all of 2012, four points above the average for all of 2011. December's index reading was revised to 100.8. (Logo: http://photos.prnewswire.com/prnh/20010807/CMALOGO) "Our California Index has declined for each of the last six months, down 6.7 points from its July 2012 peak," said Robert Dye, Chief Economist at Comerica Bank. "Components of the index were mostly negative. Only payrolls and sales tax receipts were up for January. Property markets appear to be firming up in most areas, providing broad-based support to the state economy. However, recent state income and sales tax increases add to the drag from federal-level fiscal tightening."

Not a great report, but California has managed to return to front and center of the national agenda. The government sector does not kick into second gear unless California does. Hopefully the government sector will remain in first gear, and stay there.

Oil at $88

Oil dropped to a temporary low. This is a clear indicator that we suffered a recent energy crunch and economic slowdown will be recorded next quarter. Anyway, this only applies to energy, I may be wrong. Other economists are predicting a 3% growth next quarter, not me.

Philadelpia going bust?

You know a city is in deep trouble when its mayor invites Wall Street but not the press and not private citizens to a closed meeting to discuss the future, including a sell-off of city assets. Philadelphia Mayor Michael Nutter, whose municipality has the lowest credit rating of the five most-populous U.S. cities, did just that. Read more at http://globaleconomicanalysis.blogspot.com/2013/04/philadelphia-5th-largest-city-in-us-is.html#lbxYlLrkgHLbY1Gs.99

Dem warns on Obamacare

Sen. Max Baucus (D-Mont.) said Wednesday he fears a "train wreck" as the Obama administration implements its signature healthcare law.

Read more: http://thehill.com/blogs/healthwatch/health-reform-implementation/294501-baucus-warns-of-huge-train-wreck-in-obamacare-implementation#ixzz2QkgRDbjQ
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Obamacare will be defined by what California does, frankly. No one knows how Obamacare will work because California is not done deciding how it will work.

Oil dropping

$90, down more than 3%. Is this a trend? If it is it is likely a trend of slow growth, which is reported to be .5% However, hear this news from California:

In the Inland Empire, an industrial real estate boom

Nestled on the windy plains at the foot of the San Bernardino Mountains, once austere stretches of agricultural land have morphed into the country's most desirable industrial real estate market, and it is growing faster than any other industrial region in the U.S. Among the many merchants running large-scale operations now are such household names as Amazon.com Inc., Kohl's Corp., Skechers USA Inc., Mattel Inc. and Stater Bros. Markets. Vincent reports this from the LA Times.

California is still a mixed bag, I still cannot get a handle on any trend, but positive reports keep cropping up amid the very slow growth. I am still waiting to see California sorted out from the rest of the US economy.

Tiny dwarf steals Nukes; goes missing

North Korean leader Kim Jong-un has not been seen in public for the past two weeks sparking widespread speculation amid escalating tensions in the Korean Peninsula.Link

The little boy is protesting because 3 foot 4 inches is not tall enough for basketball.

First call to delay Obamacare

Thursday, April 4, 2013 Share on facebookShare on twitterShare on emailMore Sharing ServicesEconomics, Health Care It’s time to delay Obamacare James Capretta and Yuval Levin | April 4, 2013, 12:42 pm Shutterstock As the implementation of the major provisions of Obamacare approaches, it is increasingly clear that no one involved is prepared, and that the unintended consequences of the law’s conflicting objectives will be painfully compounded by a rushed and poorly managed effort to put it into effect.

http://feedproxy.google.com/~r/aei-ideas/economics/~3/u5gyESir2aE/