Our Autumn of Discontent
The elusive market drop we have been waiting for all year. Each month, from May through August, we anticipated what would finally be a 10% or greater market correction. Or an outright crash, given the known tapering later this year of the Federal Reserve quantitative easing. In this note we examine the worst 1% of market crashes through history.
Soon we will approach the fall months, and we all suspect that these are some of the riskiest months in the market. After all, most of the 10, worst one-day market panics on the Dow, have infamously occurred near October. But a ranked listing of only 10 is a freakishly small sample of extreme events, from which to draw any statistical significance.
What We Read Today 02 September 2013
Econintersect: Click Read more >> below graphic to see today's list.
The top of today's reading list reports on James Tobin's 30-year old paper describing the operation of banking which many still do not understand today ........ and the last article is by Bill Mitchell who maintains that we are in class warfare and the working class is losing.
No Clear Trend for Real Household Income for July 2013
from Sentier Research
According to new data derived from the monthly Current Population Survey (CPS), median annual household income in July 2013 was $52,113, not statistically different than the June 2013 median of $52,181.
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Markets Closed For Labor Day
Opening Market Commentary For 09-02-2013
Today is Labor Day and the US Equities Markets are closed.
Gary will return tomorrow, Tuesday the 3rd.
Enjoy your Holiday.
Rebel Rousing: Possible US Military Strikes Leave Syrians Unfazed
The strike group's expected to team up with several ships already in position in the Mediterranean, off the Syrian coast. The combined fleet could pummel Damascus from a safe distance, dealing massive damage to the country.
India: GDP Slump Continues
Econintersect: Growth in the Indian economy continued to slow in the second quarter 0f 2013 as GDP registered a 4.4% annual growth rate, down from 4.7% in the first quarter. The recent actions (raising interest rates) of the Reserve Bank of India (RBI) to try to stem the decline of the rupee has added to pressures limiting growth. The distress for India is evident when it is realized that GDP growth has not been this low for eleven years. Even in the Great Recession the lowest GDP growth rate was just under 6%.
Read more >>
Housing Smoke & Mirrors (17) - 'Dude Where's My Housing Recovery?'
Written by Adam Whitehead, KeySignals.com
In Housing Smoke and Mirrors 'Re-tuning the HARP' and 'Name That Tune' the dissonant tones, in relation to the condition of the housing market, became louder. This dissonance has become too loud to bear for the weaker hands in the market.
Read more >>
A Financial Sovereignty Strategy for Egypt
by Fadhel Kaboub
Reposted from New Economic Perspectives.
Despite all the heated public debates that we have been witnessing in Egypt since the January 2011 uprisings, very little attention has been given to the root causes of the country's deepest economic problems. Understandably, as a country moves towards democracy, it must address all the concerns about freedom of expression, religious rights, women's rights, security and justice sector reforms, anti-corruption laws, political pluralism, elections, and constitutional reform.
China: Manufacturing Rebound Strengthens
Econintersect: The official PMI (Purchasing Managers' Index) for China registered a gain to 51 in August. It had been 50.3 in July. A second PMI published by Markit and HSBC also gave a reading that indicated expansion of manufacturing. HSBC reading of 50.1 was up sharply from July which saw 47.7, an 11-month low. The surge by the HSBC value ended three months of divergence between the two PMI surveys. Both PMIs were stronger than expected, with the official PMI registering a 16-month high.
Click on graph for larger image.
Revenue Reports: A Big Concern
Why These Two Big Company Earnings Reports Concern Me So Much
Written by Mitchell Clark, Profit Confidential
"The company beat onearnings but missed on revenues" - that's the story this past earning season, and a similar one to the last few quarters.
It's a real problem. Corporations are squeezing expenses and employee productivity without investing in new operations. Excess cash is being returned to shareholders in a zero-growth environment, peppered with some priceinflation. This is not the recipe for a rising stock market.
Infographic of the Day: Email Is Dying?
Rumor has it, email is dead. It seems that each time a new technology is introduced, people claim it will kill our reliance on email. Sure companies have access to social media, direct mail, and TV opportunities for communicating their message, yet email marketing is still the quickest and most direct way to reach the customer.
The Rise of the American 1-Person Household
by Felix Richter, Statista.com
According to the U.S. Census Bureau, 1-person households are on the rise across the United States. Just 17 percent of American households were considered 1-person back in 1970 and this figure grew steadily over the past four decades, reaching 26 percent by 2000. In 2012, it increased further to 28 percent.
In line with this increase, households containing married couples have steadily declined. In 2012, 49 percent of households in the country fell under the 'married couples' category.
Top Ten Investing Articles for July 2013
Econintersect: Lee Adler tops the list for the Investing Blog for July 2013. Adler had two articles in the top ten. The other authors making the list are Investing.com Staff, All About Trends, Jeff Miller, Felix Richter and EconMatters. See the list with active hyperlinks after the Read more >> jump.
Documentary of the Week: Does Money Grow on Trees?
Econintersect: Lindsey Williams moderates a four part documentary on the U.S. Federal Debt. The interviewees heard from in the program include Global Economic Intersectioncontributor Lee Adler. The consensus of those interviewed is that money does not grow on trees. The weakness of the program is that it answers the title question with a "no" but doesn't address the question of where money does come from. The strength of the program is that it has very good descriptions of how QE (quantitative easing, aka large scales asset purchase programs) works.
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Click through Read more >> to view videos.]
