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Noteworthy News – November 18, 2013

Economy:

Youth unemployment could tear Europe apart, warns WEF – Telegraph

Alcohol Obesity and Smoking Do Not Cost Health Care Systems Mone– Forbes

Monetary policy has not been ultra-loose – Economist

China’s Going To Get Old Before It Gets Rich – NPR

The Money Trap – New York Times

Markets:

Property in China: Even big developers and state-owned newspapers are beginning to express fears of a property bubble – Economist

How We Can Stop Hospitals From Over-Billing – HuffingtonPost

Germany’s hyperinflation-phobia – Economist

Politics:

U.S. Doesn’t Have a Spending or Deficit Problem – Real Clear Politics

GOP’s ignorance of economics: Even more dangerous than realized – Salon

Banks:

Banks to repay 3.6 billion euros of crisis loans: ECB – Reuters

Moody’s cuts ratings of three big US banks – CNBC

government-nudge

Posted in Economics, Markets, Media, Politics.


Margin Debt: Correlation or Causation

Margin debt is at its historic highs since 1990.  What might this imply?  Possibly that the exuberence in the equity markets has become frothy:

Margin Debt Vs S&P 500The two time series do not have a spurious correlation.  Markets go up means that investors want to join in even if he/she does not have the money to buy.  Margin goes up, margin users are buying, buyers push up prices.  This merry-go-round happens until it runs out of steam…or until the Federal Reserve chairman decides to take away the punch bowl.

Posted in Markets.

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Noteworthy News – November 4, 2013

Economy:

The Rise of Invisible Work – Atlantic

Japan Salaries Extend Fall as Abe Urges Companies to Raise Wages – Bloomberg

In Latvia, young people discover new passions in bad economic times – Washington Post

Abolish daylight saving time and divide the US into just two time zones, economist says – Economist

Markets:

China’s Gold Hoarding Continues: Over 2,200 Tons Imported In Two Years – ZeroHedge

Property hot spots renew easy-money bubble fears – Reuters

Politics:

Balance sheet shows US $16 trillion in the hole – CNBC

Europe is a currency saint but an egregious demand sinner – Telegraph

Banks:

The Bank Guarantee That Bankrupted Ireland – Web Of Debt

Fannie Mae sues 9 giant banks over Libor losses – Yahoo!

correction-it-crashed-and-burned

Posted in Economics, Markets, Media, Politics.


Noteworthy News – October 28, 2013

Economy:

Debtors’ prison: The euro zone is blighted by private debt even more than by government debt – Economist

How will shutdown furloughs affect the October jobs numbers? – Washington Post

The economics of interstellar flight – Economist

The World’s Worst Spendthrifts? Not Who You Think – Bloomberg

U.S. jobless claims stay elevated, manufacturing slows – Reuters

Markets:

In Fed and Out, Many Now Think Inflation Helps – New York Times

How long can central banks sustain market rally? – Economic Times

Politics:

A natural long-term rate: Central banks ignore this century-old observation at their peril – Economist

The Promise Of Silicon Valley And The Perils Of Big Government – Forbes

Banks:

Why Debt and Money Created ‘Out of Thin Air’ Are Necessary, Not Evil – PBS

Emerging-Market Bank Lending Conditions Tighten Further – Wall Street Journal

gaining-perspective

Posted in Economics, Markets, Media, Politics.


Noteworthy New – October 21, 2013

Economy:

Financial States of America – MoneyChoice

U.S. jobless claims fall, mid-Atlantic manufacturing expands – Reuters

A Unifying Theory of Why Women Earn Less – Freakonomics

Tabulating the Underground Economy, and the DEA’s Pathetic Attempt to Map the Marijuana Trade – GeoCurrents

Closing the books on the U.S. budget… for now – Northern Trust

Markets:

What We’ve Learned from the Financial Crisis – Harvard Business Review

Physicists and the financial markets – Financial Time

Stop Being Wrong About China Buying Our Bonds – Slate

S&P 500 Extends Record Amid Stimulus Bets as Google Jumps – Bloomberg

Politics:

Stanley Druckenmiller: How Washington Really Redistributes Income – Wall Street Journal

Alan Greenspan still thinks he’s right – Washington Post Opinions

Top economist tells Bill Moyers: ‘The debt ceiling should be eliminated’ – Raw Story

U.S. debt jumps a record $328 billion — tops $17 trillion for first time – Washington Post

Banks:

U.S. housing regulators seek over $6 billion from BofA: FT – Reuters

lets-be-friends

Posted in Economics, Markets, Media, Politics.




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