Comment The chart above shows that for only the fifth time in the last 10 years (40 quarters) has quarterly GDP exceeded 4%. Note that in the previous four examples GDP dipped below 2% within the next two quarters (and below 1% in two of these examples) . Restated, in the last 10 years 4%… Continue reading Q2 GDP, Will It Last?
Forbes – Louis Woodall: No, Professor Cochrane, The Fed Is Not Getting It Right QE2 was conducted for eight months, from November 2010 through June 2011. During that time, M0 rose by $681 billion, or about 35%. During the prior eight months, M0 had actually declined by $154 billion, or a little more than 7%.… Continue reading Is The Fed Getting It Right?
The Economist – Choosing the right pin House prices in Europe are losing touch with reality again. Deflating the bubbles will not be easy THE Swedish word bo means to live; sambo to cohabit. As more people struggle to get on the housing ladder, a new word has been coined: mambo, to live with your… Continue reading More Worry About Home Prices
Bloomberg View – How the S&P’s Mighty Have Fallen: Ritholtz Chart This week, the Standard & Poor’s 500 Index closed above 2,000 for the first time. Here’s what the Wall Street Journal wrote: It took 16 years for the S&P to gain 1000 points since breaking through 1000 for the first time in 1998. The… Continue reading The Changing Market
Market News International – S&P: US Student Loan Debt Could Drag Spending Down In Long Run The sharp rise in student loan debt could be a drag on U.S. consumer spending in the long run, as borrowers become reluctant, or unable, to take out additional loans in order to finance the purchase of a home… Continue reading More On Student Loans
Bloomberg.com – Schaeuble Sees Draghi’s Instruments for Growth Exhausted The European Central Bank has run out of ways to help the euro area, putting the burden on governments to spur growth without running excessive deficits, German Finance Minister Wolfgang Schaeuble said. In an interview with Bloomberg Television at the Medef business leaders’ conference near Paris,… Continue reading No ECB QE?
The Economist – Black-cat market Irrational investment habits lead to lower returns IN AN effort to show that even good luck can be planned in advance, the Beijing Olympics kicked off at 8.08pm on August 8th 2008, invoking the supposedly auspicious properties of the number eight. In Chinese, the word “eight” sounds similar to “prosperity”.… Continue reading Trader Superstitions
Comment MIT Professor David Autor presented a paper at Jackson Hole saying Robots/machines are not going to take over repetitive jobs. Below is a retort to it. Also, for the other side of this argument, please see the video we posted earlier this month. FT Alphaville – David Autor’s guide to labour and the machine… Continue reading Will Machines Take Our Jobs?
Dallas Fed President Richard Fisher Takes the ALS Ice Bucket Challenge Comment Warren Buffett stopped by Floyd Mayweather’s gym in Las Vegas to provide Floyd with some financial advice on Tuesday night. Buffett also joined “The Money Team” (Floyd’s clothing line). Buffett joins the likes of Justin Bieber, Isaiah Thomas and Lil Rome Diddy who… Continue reading Cartoons
Comment Yesterday Jim Bianco was on Bloomberg TV with Canaccord Genuity’s Tony Dwyer discussing the 30-year bond yield and the state of the U.S. economy. To view the interview click on the image above. To view any of our recent interviews, click here. In the interview Jim suggested that very few think the market gains… Continue reading The C- Economy And A Lack Of Permanence
Audio [audio:https://www.biancoresearch.com/bianco/SubscriberArea/newsclips/2014/08/sbfd8a45.mp3|titles=Conference Call ] Comment Yesterday we were highlighted in a Bloomberg story about the relationship between stocks and bonds. At the 33 minute mark of the audio above we were interviewed by Bloomberg radio on this same topic.
Real Time Economics (WSJ Blog) – A Look at Income Inequality, Hour by Hour A new study by the Economic Policy Institute, a left-leaning think tank, breaks down Labor Department data on hourly earnings to show income disparity even at the level of hourly wages. Someone earning $8.38 an hour is in the 10th percentile,… Continue reading Wage Differentials