Budget gaps, bank regulations, confidence, and forecasts.

The city of Houston needs to make up a $25 million budget gap. There was a budget gap of $103 million, but about $50 million was previously set aside for this sort of situation, with about $28 million more already planned to help try to reach the rest of the gap. $25 million is a lot better than $103 million!

A good, though lengthy, article on bank regulation in the Harvard Magazine.

Consumer confidence seems set to go higher and business confidence is loads better. Seems like consumers are looking at the unemployment rate while businesses are looking at stocks. Go figure.

The OECD predicts growth (or lack thereof) for some countries. Pretty decent news for the US--less so for Canada.

Oil, government, manufacturing, and low wage workers.

BP found a lot of oil in the Gulf of Mexico. Good news for Houston, and anyone who pays for gas. Though, keep in mind, that this is just a drop in the bucket for worldwide supply, and the oil is harder to get than ever.

The Wall Street Journal actually has an article about government helping the economy.

Growth in manufacturing too? Interesting. Cash for Clunkers may have helped that, but I don't know if it'll hold in the long term.

Low wage workers reportedly are often cheated, as a result getting paid less than the minimum wage. This is widespread, not just affecting undocumented workers.

Bailout money, underwear, and good news.

Banks are paying back bailout money, with interest. Sounds like it was a pretty good deal!

Another strange economic indicator: underwear. The worse times are (and, presumably, the less money you have), the more willing you are to wear tattered underclothing. Who's gonna see? Also, people attempt to cut their own hair (with hilarious results).

Some regions are seeing potential growth! Seems a little early to be sure, though. Building contracts are up in the Houston area.

There is now increased productivity. Not a surprise, really. When firms lay people off or slow hiring (as they have been doing), they presumably hold on to more productive people in order to achieve this very effect--higher productivity at proportionally lower costs. This goes hand-in-hand with higher profits, which leads to all sorts of benefits in the economy. Yet another sign that we're in recovery mode.

Solar power, education, inflation, and majors

China is really pushing the production of solar panels. Siemens has also invested a lot of money into solar power recently. I've heard people say that oil prices will only go up in the long term, but I wonder if energy prices will actually go down.

Some people talk about why the price of upper education has risen.

As the economy bottoms out, we look more towards inflation. With slow growth, I don't expect inflation to get out of control, though even if that were the case it seems to be a necessary condition for growth in this recovery period.

College students fret about their majors. I thought this has always been a problem for them, especially for liberal arts people.

Water, TARP, incentives, and Austin.

Here's an interesting article on the issue of water in Latin America.

Here's a look at TARP funds--they were actually used to make loans! Some were afraid this may not be the case for very much of the funds.

A TED talk (those things are great) by Dan Pink, former speechwriter for Al Gore. He talks about incentives, and how they can hurt. Also follow the links for similar talks by Dan Ariely.

Austin, TX looks like it's going to rebound this year, too. News for Texas looks relatively rosy.

The rich, Bernanke, unemployment, and cell phones

Over the past two years, the rich have not gotten richer, ending a 30-year rise.

Bernanke is apparently optimistic on near-term growth. That shouldn't be a surprise to anyone, I think. There's a lot of reason to be optimistic, it seems.

Unemployment rose in 26 states.

Another development article: the solar-powered cell phone. I always thought heat was detrimental to the lifespan of electronics--though, I guess a solar-powered cell phone makes more sense than a wind powered or hydroelectric cell phone. Still, there are small solar cells you can buy to charge small electronics. Why not just replace the car charger (or whatever) with a solar charger?

Silver bullets, aid money, institutional reform, and Texas

Dennis Whittle tell us about the attraction and myth that is the developmental silver bullet.

Here's an interesting graphic on monetary flows of developmental aid. Aid in Israel has shrunk a lot, apparently.

Another of development: William Easterly reminds us that institutional reform may help developing nations, but we don't know what that means. I disagree that the term is meaningless, though. It helps us to narrow down what types of reforms might be most helpful, and then a more detailed analysis of the factors of institutional reform may help us pin down specific actions.

The economy in Texas is looking strong! Or, at least, looking to rebound soon. I don't expect commercial real estate construction to start up very strongly soon, though.