Real Time Economics (WSJ Blog) – Jon Hilsenrath: Central Station: Bernanke Hopeful on 2014, And So Much More Economists gathered in Philadelphia for the annual meeting of the American Economic Association this past weekend spent a great deal of time debating the risk to the U.S. of secular stagnation – or slow economic growth. Here… Continue reading Comparing The Tech Bust To The Housing Bust
Zero Hedge – Cliff Asness Blasts Those Who Call It “A Stock Picker’s Market” I don’t know what it means to say, “It’s a stock picker’s market.” It may mean the whole market isn’t going straight up now so you have to make your money picking the right stocks, but I don’t understand why active… Continue reading Is It A Stock Picker’s Market?
The New York Federal Reserve – Bill Dudley: Economics at the Federal Reserve Remarks at the American Economic Association 2014 Annual Meeting, Philadelphia, Pennsylvania But there is much more work to do. In particular, I think we have just scratched the surface in understanding how developments in one area, such as capital and liquidity requirements… Continue reading The Federal Reserve Does Not Understand QE, Productivity, Or Hiking Rates
The Wall Street Journal – Economists Spar Over U.S. Recovery Economists John Taylor and Larry Summers exchanged pointed words Saturday about the best approach to spurring the economic recovery. The exchange came amid a discussion on “Rapid Growth or Stagnation for the United States Economy?” at the American Economic Association meeting here. Mr. Taylor, of… Continue reading Economists Arguing About Getting It Wrong
The Wall Street Journal – Where Deflation Risks Stir Concerns In Europe, Fears Grow of Falling Prices and the Economic Destruction They Cause Relatively few people alive today in the West have experienced deflation, but for Europeans, that may be changing. Anxieties are rising in the euro zone that deflation—the phenomenon of persistent falling prices… Continue reading Deflation Fears In Europe
The Wall Street Journal – Gross’s Black and Blue Year Clients Pull a Net $41.1 Billion From Pimco Total Return Fund, an Industry Record A tumultuous past year for the world’s largest bond fund got a little rougher, as investors in Pimco Total Return Fund pulled out a net $41.1 billion in 2013, a mutual-fund… Continue reading Pimco’s Bad Year
The Financial Times – Lawrence Summers: Washington must not settle for secular stagnation The third approach – and the one that holds most promise – is a commitment to raising the level of demand at any given level of interest rates, through policies that restore a situation where reasonable growth and reasonable interest rates can… Continue reading Larry Summers Discusses Secular Stagnation In Washington
Bloomberg.com – Caroline Baum: Someone Please Help New York Times With Econ 101 Economists David Neumark and William Wascher reviewed more than 100 studies on the minimum wage in a 2006 paper for the National Bureau of Economic Research: “Minimum Wages and Employment: A Review of Evidence from the New Minimum Wage Research.” Here’s a… Continue reading Raising The Cost Of Employment (Minimum Wage) Reduces Jobs
MoneyBeat (WSJ Blog) – The Bearish Call to End All Bearish Calls In what may be the bearish call to end all bearish calls, one technician believes 2014 will be the year of “major reversals,” with the Dow Jones Industrial Average expected to start a two-year decline that could eventually take it down more than… Continue reading Now This Is Bearish!!
Bloomberg.com – Central Banks Split on Stimulus in 2014 as Fed Tapers The united stimulus front of central banks is starting to splinter as 2014 dawns. The Federal Reserve — soon to be led by Janet Yellen, who is poised for confirmation by the Senate today — begins pulling back on its quantitative easing amid… Continue reading Stimulus In 2014
The New York Times- Peter J. Walliston: The Bubble Is Back IN November, housing starts were up 23 percent, and there was cheering all around. But the crowd would quiet down if it realized that another housing bubble had begun to grow. Almost everyone understands that the 2007-8 financial crisis was precipitated by the collapse… Continue reading Is The Housing Bubble Back?