Economist – Stagnant thinking An old explanation for economic drift gains a new following EVEN before the financial crisis, there was a lurking suspicion that bubbles were the only way listless rich economies could keep growth up and unemployment down. “Recession-plagued nation demands new bubble to invest in,” joked the Onion, a satirical newspaper, in… Continue reading Secular Stagnation
AEI Ideas – Why there’s a good chance there will be another recession before the 2016 election As the handy chart from Hamilton Place Strategies notes, the average expansion since 1980 has been 72 months, while the current expansion is 53 months and counting. By that count, we’re closer to the end than the beginning,… Continue reading Is The Next Recession Less Than Two Years Away?
The Economist – Not fully inflated Many economists have struggled to accept that bubbles exist, as that is difficult to square with the idea of efficient markets. If assets are obviously overpriced, why don’t smart investors take advantage and sell? Edward Chancellor of GMO argues that investors can find it hard to arbitrage away a… Continue reading Measuring Financial Bubbles
The Wall Street Journal – Peter Wallison: Get Ready for the Next Housing Bubble Since these two government-sponsored enterprises became insolvent in September 2008, FHFA has also been their conservator, with the power to control their operations and policies. Mr. Watt is a good man, but he is a man of the left, and he… Continue reading Is Another Housing Bubble Coming?
The Financial Times – Large investors turn cold on commodities After two years at the helm of the world’s worst-performing asset class, managers of commodities funds could be forgiven for feeling unloved. Wall Street analysts, big-picture strategists and powerful consultants have turned cold on oil, metals and grain futures as a decade-long rally peters out.… Continue reading Dissin Commodities
The Wall Street Journal – U.S. Oil Prices Fall Sharply as Glut Forms on Gulf Coast The Ramifications Could Be Far-Reaching, Including Lower Gasoline Prices for American Drivers Unthinkable five years ago, the abundance of petroleum reflects surging output from oil fields in West Texas and North Dakota, as well as new pipeline routes to… Continue reading A U.S. Crude Oil Glut
The Financial Times – Brace for bumpy ride in emerging markets Banks and hedge funds stealthily creating ‘hit lists’, writes Gillian Tett This week, the Indian government can breathe one tiny sigh of relief. After a year in which the rupee has gyrated dramatically, amid fears about a US “taper” and poor growth, the Indian… Continue reading Emerging Markets “Hit List?”
The Economist – The rise of BlackRock In 25 years, BlackRock has become the world’s biggest investor. Is its dominance a problem? Established in 1988 by a group of Wall Streeters led by Larry Fink, BlackRock succeeded in part by offering “passive” investment products, such as exchange-traded funds, which aim to track indices such as… Continue reading Covering BlackRock
The Wall Street Journal – Companies Say Goodbye to the ‘Burbs Young Talent Wants to Live in Chicago, Not Libertyville; Dilemma for Older Workers Cheap real estate, tax incentives, and easy automobile access once lured companies to the suburbs, but companies now want urban amenities, proximity to public transit and sense of community—the same qualities… Continue reading Are Companies Leaving The Suburbs For The Big City?
Yahoo Finance – People At CNBC Are Relieved That Maria Bartiromo Left The entire financial TV industry is in a state of flux. The Wall Street Journal recently reported on the dismal ratings at CNBC, Fox Business, and Bloomberg. Bloomberg, meanwhile, is in the midst of some kind reassessment of its TV business, and there’s… Continue reading More On Cable Business News
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Comment Jim Bianco was on Bloomberg TV yesterday discussing the timing of the Fed’s taper. To view the interview, click on the image above. To view any of our recent interviews, click here.