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Noteworthy News – January 6, 2014

Economy:

The Business of the Minimum Wage – New York Times

How China crashed the Nafta party – Guardian

The robots are coming. Will they bring wealth or a divided society? – Guardian

Retreating U.S. stimulus poses risk to world recovery – Reuters

Markets:

Bull Market Has Years Left for Shaoul as S&P 500 Valuations Rise – Bloomberg

Treasury Yields at Almost 2 1/2-Year High as Bernanke Sees Gains – Bloomberg

Five predictions for financial markets in 2014 – DhakaTribune

Politics:

Five Economic Reforms Millennials Should Be Fighting For – RollingStone

Help the Working Poor, but Share the Burden – New York Times

Bernanke has set the stage for the Fed’s collapse -Jim Rogers – Mineweb

The Fall of France – Newsweek

IMF paper warns of ‘savings tax’ and mass write-offs as West’s debt hits 200-year high – Telegraph

Banks:

Banks as Patient Debt Investors – Board of Governors of the Federal Reserve System

U.S. Bank Stocks Regain Their Allure – Wall Street Journal

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Posted in Economics, Markets, Media, Politics.


Noteworthy News – December 30, 2013

Economy:

Global retirement crisis bears down on workers of all ages – Providence Journal

Robots and the future of work – The Hill

Is the Labor Force Participation Rate about to Fall Again? – Federal Reserve Bank of Atlanta

Americans are buying less electricity. That’s a big problem for utilities – Washington Post

Retailers hunt for the ever-elusive holiday profit – Star Tribune

Markets:

Bitcoin Is Evil – New York Times (Krugman)

US Treasury yields highest since July 2011 – Financial Times

Politics:

France’s 75% tax rate gains approval by top court – BBC

Governments and economic progress – Economist

Welfare Benefits for Big Business – New York Times

Banks:

Academics Who Defend Wall St. Reap Reward – New York Times

We Saw “The Wolf of Wall Street” With a Bunch of Wall Street Dudes and It Was Disturbing – Slate

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Posted in Economics, Markets, Media, Politics.


CapitalOne 360 Savings Account at .75%

A personal finance choice that has been lost on many is maximizing the interest rate on your savings account rather than locking money up in CD’s or bonds.  ING Direct was bought by Capital One, which has created a very high quality entity that pays one of the highest interest rates on the savings account.  According to Bankrate.com, one year CD’s are averaging .70% with a maximum of 1.1% at the less favorable banking entities.  Why lock up money for a year when you get the flexibility of a liquid savings account at .75% with the bonus offers below:

CapitalOne360

There is no downside that I can see.  You can easily link your savings account to any external checking account.  I have been using the system for over 5 years and have been very happy with the convenience.

Posted in Personal Finance.


Noteworthy News – December 23, 2013

Economy:

There’s a new jobs crisis – we need to focus on the quality of life at work – Guardian

Uber and the Macro Wars – New York Times (Krugman)

Once Again, Irish Youth Are Leaving For A Better Life Overseas – NPR

Revision Shows U.S. Growing at Fastest Rate Since 2011 – New York Times

Economic Possibilities for Our Children: The 2013 Martin Feldstein Lecture – National Bureau of Economics (Summers)

Markets:

Gold’s 13-year bull run breaks with 29% annual loss – MarketWatch

Watch US stock-growth disconnect: Blackstone CEO – CNBC

Politics:

QE: The greatest subsidy to the rich ever? – CNBC

European Union Stripped of AAA Credit Rating at S&P – Bloomberg

Fed Assets Reach Record $4 Trillion on Unprecedented Bond-Buying – Bloomberg

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Posted in Economics, Markets, Media, Politics.


Poorer Than Your Parents?

In Britain, the Guardian indicates that it is no longer believed that new generations have better living standards than previous generations:

the Institute for Fiscal Studies (IFS) said its research showed the days when each generation could expect to be better off than their predecessors might be ending.

…found that a decade in which real incomes have stagnated – coupled with changes to pensions and high house prices – has made life tougher for people currently in their 30s, 40s and early 50s than those born earlier.

Workers aged from 34 to 53 are being punished by inadequate pay rises, dire pensions and crippling housing costs. With meagre savings, their only hope of a comfortable retirement is a large inheritance.

Equalized cohort Income UK

Generation Stagnation – 1970’s generation receives higher income earlier, but significant decline before middle age

Equalized Savings by Cohort UK

Declining income with higher living expenses translates into negative savings rates

Declining Retirement

Most importantly, there is no safety net for private employees’ retirement

Posted in Economics.

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