A cynical look at our financial markets and the governments that support them
The graph speaks for itself. All of the savings accrued due to fiscal stimulus after COVID is being eaten away by higher prices and slower growing wages. We can speak about the job market being strong, but you cannot ignore the fact that the majority of Americans are living paycheck to paycheck to credit card…
Posted in Economics, Markets, Personal Finance.
Comments Off on US Savings Level Lowest Recorded Since 1970
– January 12, 2023
To say that I have been on a hiatus is an understatement, but that does not mean that the events of the past year have been lost on me.
The truth is that quantitative easing has not and will not work. In fact, I believe that it will cause more pain than the sum of the total past benefits. Given the situation that we found ourselves in during the Great Financial Crisis, it is fair to say that quantitative easing and the actions of central banks made the immediate blow softer than it would have been. Unfortunately, the actions have also borrowed from the future and created instabilities that cannot last.
Did you know that the top .1% own as much as the bottom 90%:
Did you know that workers are not retiring because they can’t afford it:
Did you know that median income levels are below those set back in 1997:
Did you know that the labor force participation rate is as low as it was in 1977 when less than 40% of eligible women worked:
The reality is that the US economy is sick, yet financial markets show extremely optimistic valuations with interest rates the lowest in 5,000 years:
and corporate bonds at peak valuations:
At this point we should probably mention that equity valuations are above the levels that were achieved before historic drawdowns:
And that this bull market is 28 months older than the average bull market:
I am not sure when this grand experiment will end, but I am confident that there will be blood in the streets.
Comments Off on The Never-Ending Central Bank Experiment?
– June 8, 2016
Income inequality: poverty falling faster than ever but the 1% are racing ahead – Guardian
Slow economy could prompt Iran to take nuclear deal – Washington Post
Economists Fear Oil-Price ‘Contagion’ Has Hit Canada’s Economy – Huffington Post
Stock market rigging is no longer a ‘conspiracy theory’ – New York Post
Fears of a new global crash as debts and dollar’s value rise – Guardian
Deflation Danger Rings Wake-Up Call to East Europe Central Banks – Bloomberg
Eurozone can’t survive in current form, says PIMCO – Telegraph
The ECB’s put – explained by Draghi – CNBC
Investment banks eye potential trading boost from ECB stimulus – Reuters
Posted in Economics, Markets, Media, Politics.
Comments Off on Noteworthy News – March 30, 2015
– March 29, 2015
Wages Haven’t Been This Crucial to U.S. Economy in Half Century – Bloomberg
To move beyond boom and bust, we need a new theory of capitalism – The Guardian
The Coming China Crisis – Naked Capitalism
It depends what you study, not where – Economist
Bank of Japan research shows failing bond market liquidity – ForexLive
Sports Stadiums Are Bad Public Investments. So Why Are Cities Still Paying for Them? – Reason.com
Fed statement doesn’t rule out lengthy stay at zero, Evans says – MarketWatch
A coming crackdown on Federal Reserve power? – Politico
Vladimir Putin calls for ‘Eurasia’ currency union – Telegraph
Banks Keep Loans Close to Home – Wall Street Journal
Posted in Economics, Markets, Media, Politics.
Comments Off on Noteworthy News – March 23, 2015
– March 22, 2015
Here Come the Employment Truthers – New York Times(Paul Krugman)
Obesity Is Hurting the U.S. Economy in Surprising Ways – Bloomberg
Economists’ Biggest Failure – Bloomberg
The Fed Knew the Economy Was a Disaster in 2009. Here’s What They Talked About Instead – New York Times
S&P 500 companies have bought back $2.1 trillion worth of themselves since the financial crisis – Business Insider
Map: The salary you need to buy a home in 27 U.S. cities – Washington Post
Japanese shares down on revised growth data – BBC
US monetary policy and the saving glut – VOX
Impacts of Obamacare insurance coverage expansion for young adults – VOX
Germany Sets Gender Quota in Boardrooms – New York Times
China, central banks are key risks this week – CNBC
European banks’ profitability gap shows big cost cuts needed – Reuters
Posted in Economics, Markets, Media, Politics.
Comments Off on Noteworthy News – March 9, 2015
– March 8, 2015
Buy the print book in color and get the Kindle version for free along with all examples in a spreadsheet tutorial!
