Bank Lending and Bank Reserves
by Dan Kervick, New Economic Perspectives
Frances Coppola has a very nice piece in Forbes that takes on some of the continuing confusion over commercial bank reserves, central bank payments of interest on reserves and the relationship of both to commercial bank lending.
Read more >>
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Weekend Market Commentary: Special Edition
Weekend Market Commentary: O.K., So When Is This 'Big Correction' Coming?
UPDATED: 0900 EST 2014-07-26
Last week we spoke of slow methodical march downward and not a waterfall when the market finally 'reset', but we discussed a loose time frame between 2014 and 2016 when we will see a meaningful correction. Let's see if we can tie the start of this bear market somewhat as the most hated bull market in history marches on.
Senator Dan Patrick of Texas With The Real Story of Those Poor Refugees
Must See video. If you want the real story of the crimes committed and the lives lost to theses animals from south of the border.
What We Read Today 26 July 2014
Econintersect: Every day our editors collect the most interesting things they find from around the internet and present a summary "reading list" which will include very brief summaries of why each item has gotten our attention. Suggestions from readers for "reading list" items are gratefully reviewed, although sometimes space limits the number included.
- China Starts To Make A Power Move Against The U.S. Dollar (Michael Snyder, The Economic Collapse) Hat tip to Rob Carter who opines: It's starting now. He says Japan and China will demand debt repayment and drive the dollar to 50 cents of current value.
Is The Consumer Failing the Economy?
Or Is the Economy Failing the Consumer?
Written by Steven Hansen
Last week my post concentrated on prime interest rates' relationship with the economy - and showed there was a general lack correlation between economic growth and the prime interest rates. With over 2/3rds of the USA economy driven by the consumer - it seems to me the real question is what is wrong with the consumer?
Read more >>
Detroit Comes First For Poverty in the United States
from Felix Richter, Statista.com
by Niall McCarthy
Due to its automobile industry, Detroit was once America's wealthiest city.
How to Start Reforming the Federal Reserve Right Now
by Brendan Brown, Mises.org
First the good news. The House Financial Services Committee has held a hearing on 'Legislation to Reform the Federal Reserve on its 100-year Anniversary.' The hearing focused on a bill introduced by Scott Garrett and Bill Huizenga which would require the Fed to provide Congress with a clear rule to describe the course of monetary policy. Now for the bad news. The rule is to be an equation showing how the Fed would adjust interest rates in response to changes in certain economic variables. And the star witness before the committee proposing his own version of such a rule is renowned neo-Keynesian economist, ex-Bush official Professor John B. Taylor.
Chinese Capital Could Soon Own Much of High Street, UK
by John Weeks, The Conversation
In what might be termed 'fusion finance', a Chinese private equity company, Hony Capital, has purchased UK restaurant chain Pizza Express for Pound Sterling900m.
This isn't the first time a Chinese firm has bought up a familiar high street brand, and it certainly won't be the last. After years of selling goods to the rest of the world, the country's private sector has accumulated significant wealth. This wealth has to go somewhere and much of it is flowing back overseas. It's quite difficult to provide a dining experience for hungry Londoners from a factory in Tianjin; you can solve that problem by buying a pizza company in the UK.
Is Staples a Good 'Back to School' Stock?
Written by Aura Gilham, GEI Associate
On July 15, Staples (NASDAQ:SPLS) officially launched the back-to-school season. In the fall of 2013 As 50.1 million students attended either public elementary or secondary schools in America in 2013, a slightly larger number is expected to attend this fall; the demand for educational materials is skyrocketing during the last few weeks before schools actually open. These are busy days for the notebooks, paper and pencils market.
Household Leverage Still Off the Charts
The Chart of the Week 25 July 2014
Written by John O'Donnell, Online Trading Academy
The consumer is still hamstrung by high debt in spite of the pullback in the ratio of household debt to wage and earnings from stratoshperic levels. Today the ratio of household debt to wages and salaries is about double the average for the 30 years from 1955 to 1985. And it's 50% higher than it was just a little over 13 years ago at the turn of the century.
Household leverage is discussed in video following the Read more >> jump.
The US Debt Crisis that Will Never Happen
by Chris Mayer, Daily Reckoning
I firmly believe that there's not going to be a debt crisis here in the U.S.
I was skimming through Barron's over the weekend and I saw Gene Epstein's column titled "New Warning on U.S.' Gathering Debt Storm." He writes about the Congressional Budget Office's new report, released Tuesday.
There are some real whoppers in there.
Investing.com Weekly Wrap-Up 25 July 2014
Wall St. closes lower on Amazon, Visa; S&P's weekly gain erased
by Investing.com Staff, Investing.com
U.S. stocks closed lower on Friday in a broad consumer discretionary-led selloff after Visa and
Amazon, a pair of closely watched bellwether names, reported disappointing results.
While the S&P 500 found support at its 14-day moving average, suggesting a recent positive trend in equities remains intact, the day's decline was enough to erase the benchmark index's gain for the week.
How TV Watching Has Evolved Over The Past 8 Years
by Felix Richter, Statista.com
Along with the rise of DVRs and on-demand video streaming services came a shift in the way people consume TV content.
Investor Alert: Social Media and Investing - Stock Rumors
from the Securities and Exchange Commission
The U.S. Securities and Exchange Commission's (SEC) Office of Investor Education and Advocacy ('OIEA') is issuing this Investor Alert to warn investors about fraudsters who may attempt to manipulate share prices by using social media to spread false or misleading information about stocks.
Infographic of the Day: Top 10 Jobs of the Future
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