<Click on graphic for larger image> The Wall Street Journal – Labor-Market Dropouts Stay on the Sidelines Low Workforce Participation Rate, Amid an Improving Economy, Nags at Economists A U.S. economy that suddenly looks healthy—50 straight months of job gains, best quarter of growth in 11 years—is falling short in a key area. It isn’t… Continue reading A Look At The Labor Market
The Wall Street Journal – Job Engine Running Low on Gas Sharp Drop in Energy Prices Pinches Employers in the Oil Patch, Spurring Layoffs U.S. oil and gas companies have been an engine of economic growth through much of an otherwise lackluster economic expansion, providing steady employment, solid wages and fierce competition for workers across… Continue reading The Effect Of Falling Oil Prices
Bloomberg.com – The 94% Plunge That Shows Abenomics Losing Global Investors Foreign investors have had just about enough of Abenomics. After pumping record amounts of cash into Japanese shares last year, they’ve hardly added to holdings in 2014. Inflows are down 94 percent this year to 898 billion yen ($7.5 billion), on pace for the… Continue reading Abenomics
The Wall Street Journal – Life Without Fannie and Freddie A new study shows only a modest effect on the housing market. Last week CBO released a paper exploring various options for reform of mortgage financing. One alternative CBO studied is to allow private companies to replace Fannie Mae and Freddie Mac , the two… Continue reading Fannie & Freddie
<Click on graphic for larger image> The Wall Street Journal – U.S. Muni-Bond Market Is on a Tear The Tax-Favored Debt Has Outperformed Corporate Bonds, Treasurys in 2014 Municipal bonds are on a winning streak that many investors bet will run into the new year. The debt issued by U.S. cities, states and local entities… Continue reading Munis
The New York Times – Editorial: The Fed Fights Half the Battle By keeping rates low, the Fed is adhering to its dual mandate to foster full employment and ensure price stability. But prolonged periods of low interest rates demand extra vigilance against speculation.
Reuters – Putin orders vodka price cap amid economic crisis Russian President Vladimir Putin ordered his government on Wednesday to rein in rising vodka prices, as he battles to preserve his popularity amid an aggravating economic crisis. Putin told a meeting with government officials and regional governors that expensive vodka prices encourage the production of… Continue reading Will Russia Need A Vodka TARP?
<Click on graphic for larger image> The Wall Street Journal – Jason Zweig: When Funds Insult Their Investors As of Dec. 19, more than 79% of U.S. stock funds had failed to beat their market benchmarks for the year, compared with the average of 59% over the previous 25 years, according to investment-research firm Morningstar.… Continue reading Active Fund Underperformance
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<Click on graphic for larger image> The Wall Street Journal – Oil Prices Slide on Surge in Supplies U.S. Crude Supplies Unexpectedly Rise, Adding to Glut of Oil Oil futures retreated Wednesday and auto fuels closed at multiyear lows after data showed an unexpected surge in U.S. crude supplies. Oil producers added 7.3 million barrels… Continue reading More On Crude Oil
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The Wall Street Journal – Oil, Fed Spur Global Bond Split High-yield bonds in the U.S. and Europe are parting ways after years of moving virtually in lockstep. Yields on such bonds in the U.S. are now 2.04 percentage points higher than in Europe, compared to only 1.2 percentage points in mid-October, according to Credit… Continue reading Global Bond Split