Understanding the Decline in the Labor Force Participation Rate in the United States
by Steven Braun, John Coglianese, Jason Furman, Betsey Stevenson and Jim Stock, Voxeu.org
This article appeared originally at Voxeu.org 18 August 2014.
The labor force participation rate in the US has fallen dramatically since 2007. This column traces this decline to three main factors: the ageing of the population, cyclical effects from the Great Recession, and an unexplained portion, which might be due to pre-existing trends unrelated to the first two. Of these three, the ageing of the population plays the largest role since it is responsible for half of the decline. Taken together, these factors suggest a roughly stable participation rate in the short-term, followed by a longer-term decline as the baby boomers continue to age. However, policy can play a meaningful role in mitigating this trend.
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Market Commentary: Markets Close In The Green, SP500 Makes New Closing High
Closing Market Commentary For 09-05-2014
SP500 continued to rise along with the other averages and closed at a new closing high of 2007.71. The DOW didn't make a new closing high, but came within a point.
By 4 pm my earlier guesses were off as the markets continued to climb on a relatively quiet Friday afternoon. Aftermarket SPY showed some extremely heavy selling on unusual heavy volume. So, what are your plans for Monday? Ready to panic yet?
BLS Jobs Situation a Little Soft in August 2014
Written by Steven Hansen
The August 2014 BLS jobs report headlines were soft. The unadjusted data also paints a weak picture of job growth this month. One month's data does not make a trend.
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Market Commentary: Markets Recover From Morning Lows To Flat And Lackluster
Midday Market Commentary For 09-05-2014
The morning action included rising from the lows after sea-sawing deliberating whether to climb or descend some more. The averages have climbed back up to flat status on falling volume mostly on the signed Ukraine/Russian cease fire agreement.
By noon the Mr. Market was trying to push higher, but was quickly losing the steam needed to go higher leaving most indices flat. The prospects of slipping down by the session end are greater than rising higher. (Maybe!) The bull looks tired.
What We Read Today 05 September 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 (and sometimes longer ones) 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.
- Draghi brings out ABS rocket boosters (Ralph Atkins, Financial Times) The ECB (European Central Bank) action announced today is not QE (quantitative easing) in the form it has been customarily used. Instead of boosting weakened banks with expanded reserves with the expectation that lending will then be increased, the ECB is injecting money directly into the real (non-financial) economy by purchasing ABS (asset backed securities) and covered bonds. More 'behind the wall'.
Raise our wage cry workers and over 450 fast food workers arrested in US
Over four hundred people have already been arrested in US a nationwide protest over preconceived low wages and has pushing many people out into the streets.
Market Commentary: Markers Open Fractionally Down, Trend Sideways On Low volume
Opening Market Commentary For 09-05-2014
Premarkets were down -0.35% declining further after yesterday's close. After the U.S. Financial reporting this morning the US futures zoomed up to + 0.05% and by the opening had fallen to -0.05 %.Moderate red volume led the averages lower as the session got underway by posting lows of -0.20%.
By 10 am the averages were flat, trending sideways on falling low volume. This could be another cross road we have to figure out.
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By the End of the Century, 40% of People Will Be African
by Felix Richter, Statista.com
According to a new report from UNICEF titled Generation 2030 - Africa, the African continent is set to experience a drastic population increase over the next few decades.
Picturing Option Profits to Make Money in the Stock Market
Online Trading Academy Article of the Week
by Russ Allen, Online Trading Academy Instructor
When trading options, we are dealing with an instrument that is much more mathematical than other things like stocks and futures. Those are "single-dimension" instruments. Their prices go up, and they go down. Options have three dimensions. They are moved by changes in the underlying stock. But in addition, they change due to time and volatility. Visualizing the options profit picture is therefore more challenging.
Redirect the Helicopters
Even the Council on Foreign Relations Is Saying It: Time to Rain Money on Main Street
by Ellen Brown, Web of Debt
You can always count on Americans to do the right thing, after they've tried everything else. - Winston Churchill
When an article appears in Foreign Affairs, the mouthpiece of the policy-setting Council on Foreign Relations, recommending that the Federal Reserve do a money drop directly on the 99%, you know the central bank must be down to its last bullet.
2010 to 2013: Median Real Family Income Before Taxes Fell 5%, Mean Income Increased 4%
from the Federal Reserve
The Federal Reserve Board's Survey of Consumer Finances for 2013 provides insights into the evolution of family income and net worth since the previous time the survey was conducted, in 2010. The survey shows that, over the 2010-13 period, the median value of real (inflation-adjusted) family income before taxes fell 5 percent, while mean income increased 4 percent. The differential movements in median and mean incomes are consistent with increased income inequality over the 2010-13 period, though some of that differential growth simply reversed the cyclical decrease in income inequality that occurred between 2007 and 2010.
China's Sputtering Housing Boom Poses Broad Economic Challenge
by Dallas Fed
China's economic slowdown and changing demographics cloud its housing market's long-term prospects. While urbanization and a lack of alternative investment opportunities provide short-run support, the housing sector's difficulties imperil China's financial sector and the global recovery.
New Crisis: Senior Housing
Econintersect: According to a new study released by the Joint Center for Housing Studies at Harvard University, the existing U.S. housing stock is unprepared to meet the escalating need for affordability, accessibility, social connectivity, and supportive services of a rapidly growing population over age 50.
Real Fiscal Responsibility I: Preliminaries
by Joseph M. Firestone, New Economic Perspectives
This is the first in a lengthy blog series that will evaluate the US Government's record on Real Fiscal Responsibility, Administration period by Administration period, since the Administration of Jimmy Carter in 1977. In evaluating the US Government's record, it's important to state clearly that I will be evaluating more than just each Administration and its activities.
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Don't Expect Germany to be Europe's Saviour - Its Economy is Far Weaker than It Looks
by Terence Tse and Mark Esposito, The Conversation
With France remaining economically stagnant, Italy falling back into recession, and Greece and Portugal still struggling to stand on their feet, the international community often looks to Germany, not only as the leader of the EU but also as the saviour of the Euro. It's quite common to hear sermons on how the 'south' of Europe should learn basic lessons of governance and public debt from their northern neighbours, with Germany at the head of that pack.
Investing.com Technical Summary 04 September 2014
Investing.com Technical Analysis (as of Thu, 04 September 2014 05:00pm EDT)
by Investing.com Staff, Investing.com
Below, technical overviews and analysis for key stock indices, commodities and currency pairs,
based on market activity at the close of the 04 September 2014 U.S. session. This information is a comprehensive summary derived from simple and exponential moving averages along with key technical indicators shown for specific time intervals.
Infographic of the Day: 38 Ways to Make a Perfect Coffee
Caffe Latte, Breve, Black eye, Cappuccino or just a plain espresso?
The Most Successful Actors at the Emmys
from Felix Richter, Statista.com
by Niall McCarthy
One of our Forbes infographics explored acting success at the Emmys.
