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Worn Out Machines as Leading Indicator

By Stella Dawson

Sun Jan 29, 2012 3:04pm EST

(Reuters) – Delivery trucks wear out, computers break down, software becomes outdated — and finally businesses have to start investing in new equipment. Companies that want to remain competitive have to start spending again as an economy slowly recovers.

Four years after the downturn began, the replacement cycle shows signs of kicking into a higher gear in the United States even among small businesses, and it could give an unexpected boost to growth and employment this year.

Read the rest here.

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Existing Home Inventory declines 17% year-over-year in January

by CalculatedRisk on 1/29/2012 02:11:00 PM

According to the deptofnumbers.com for monthly inventory (54 metro areas), listed inventory is probably back to early 2005 levels. Unfortunately the deptofnumbers only started tracking inventory in April 2006.

This graph shows the NAR estimate of existing home inventory through December (left axis) and the HousingTracker data for the 54 metro areas through January.

Read the rest here.

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How Big-Time Sports Ate College Life

(via NY TIMES)

IT was a great day to be a Buckeye. Josh Samuels, a junior from Cincinnati, dates his decision to attend Ohio State to Nov. 10, 2007, and the chill he felt when the band took the field during a football game against Illinois. “I looked over at my brother and I said, ‘I’m going here. There is nowhere else I’d rather be.’ ” (Even though Illinois won, 28-21.)

Damian Strohmeyer/Sports Illustrated/Getty Images

BUCKEYE NATION Unbridled enthusiasm reigns at Ohio State games.

Multimedia
Sporting News, via Getty Images

K-VILLE This is not Occupy Duke. It’s annual tenting outside Cameron Indoor Stadium for the best seats at a basketball game

Tim Collins, a junior who is president of Block O, the 2,500-member student fan organization, understands the rush. “It’s not something I usually admit to, that I applied to Ohio State 60 percent for the sports. But the more I do tell that to people, they’ll say it’s a big reason why they came, too.”

Ohio State boasts 17 members of the American Academy of Arts and Sciences, three Nobel laureates, eight Pulitzer Prize winners, 35 Guggenheim Fellows and a MacArthur winner. But sports rule.

“It’s not, ‘Oh, yeah, Ohio State, that wonderful physics department.’ It’s football,” said Gordon Aubrecht, an Ohio State physics professor.

Last month, Ohio State hired Urban Meyer to coach football for $4 million a year plus bonuses (playing in the B.C.S. National Championship game nets him an extra $250,000; a graduation rate over 80 percent would be worth $150,000). He has personal use of a private jet.

Dr. Aubrecht says he doesn’t have enough money in his own budget to cover attendance at conferences. “From a business perspective,” he can see why Coach Meyer was hired, but he calls the package just more evidence that the “tail is wagging the dog.”

Dr. Aubrecht is not just another cranky tenured professor. Hand-wringing seems to be universal these days over big-time sports, specifically football and men’s basketball. Sounding much like his colleague, James J. Duderstadt, former president of the University of Michigan and author of “Intercollegiate Athletics and the American University,” said this: “Nine of 10 people don’t understand what you are saying when you talk about research universities. But you say ‘Michigan’ and they understand those striped helmets running under the banner.”

For good or ill, big-time sports has become the public face of the university, the brand that admissions offices sell, a public-relations machine thanks to ESPN exposure. At the same time, it has not been a good year for college athletics. Child abuse charges against a former Penn State assistant football coach brought down the program’s legendary head coach and the university’s president. Not long after, allegations of abuse came to light against an assistant basketball coach at Syracuse University. Combine that with the scandals over boosters showering players with cash and perks at Ohio State and, allegedly, the University of Miami and a glaring power gap becomes apparent between the programs and the institutions that house them.

“There is certainly a national conversation going on now that I can’t ever recall taking place,” said William E. Kirwan, chancellor of the University of Maryland system and co-director of the Knight Commission on Intercollegiate Athletics. “We’ve reached a point where big-time intercollegiate athletics is undermining the integrity of our institutions, diverting presidents and institutions from their main purpose.”

The damage to reputation was clear in a November survey by Widmeyer Communications in which 83 percent of 1,000 respondents blamed the “culture of big money” in college sports for Penn State officials’ failure to report suspected child abuse to local law enforcement; 40 percent said they would discourage their child from choosing a Division I institution “that places a strong emphasis on sports,” and 72 percent said Division I sports has “too much influence over college life.”

Has big-time sports hijacked the American campus? The word today is “balance,” and the worry is how to achieve it.

READ THE REST OF THE ARTICLE HERE 

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Vanishing Inflation Bolsters Case for Fed Easing

By Pedro da Costa and Jason Lange

(Reuters) – It has only been a few days since the Federal Reserve adopted a formal goal for inflation, and already policymakers are missing their target.

The U.S. central bank’s preferred measure of inflation sank to its lowest level in more than a year in the fourth quarter, data showed on Friday.

Growth in the government’s personal consumption expenditure index, which the Fed now targets at 2.0 percent, dropped to a 0.7 percent annual rate, about a third of its pace during the previous three months.

Of course, the Fed aims to hit its target over the longer run and will be willing to look through often volatile food and energy prices.

But even stripping those costs out, the inflation rate fell sharply to 1.1 percent over the past three months, a potentially troubling sign that the trend is not the Fed’s friend.

With unemployment still at an elevated 8.5 percent, Friday’s data could buttress the case within the central bank for taking new action to boost the economy.

Read the rest here.

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Documentary: Speaking Freely With Chalmers Johnson

A wonderful mind opens up to give you a warning message. While highly political, this body of truth and knowledge bears directly upon the markets.

Cheers on your pleb weekend activities.

[youtube://http://www.youtube.com/watch?v=nfJNFSYFmZs 450 300] [youtube://http://www.youtube.com/watch?v=Xa8ImA_wSKI 450 300]

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