In the fall of 2007, when the U.S. economy first seemed in peril, I began answering reader queries here on the Business Desk. I still do so occasionally, but this page has expanded to include posts from eminent economists, "far-flung correspondents," and a variety of voices that have intriguing and/or useful things to say about economics, broadly defined. Please feel encouraged to respond to any and all of them.
What Do 'Mama's Boys' Have to Do With the Euro Debt Crisis?
This isn't just a candidate for chart of the day or even chart of the week. Hedge fund manager Boaz Weinstein, founder of Saba Capital and former co-head of credit trading at Deutsche Bank, presented this at a conference on the Eurocrisis, as reported on the Business Insider website.
The chart plots the relationship between the price of default insurance on selected European countries and their degree of male "boomerangness" -- what percentage of male adult children 25-34 live with their parents: the Mama's Boy Index. At one extreme, Finland, where the price of insuring against government bond default is as low as it gets and less than 10 percent of 25-to-34-year-old boys have boomeranged back home; at the other extreme, Greece, with nearly 60 percent of the boys back in the fold and a credit default swap price that translates into a 30 percent chance of default in the next 12 months.
Read more here and watch our piece on Boomerang kids here.