Does the Central Bank Control Long-Term Interest Rates?: A Glance at Operation Twist
Fixing the Economists Article of the Week
by Philip Pilkington
Although less prevalently talked about today many economists assume that while the central bank has control over the short-term rate of interest, the long-term rate of interest is set by the market. When Post-Keynesians make the case that when a country issues its own sovereign currency the rate of interest is controlled by the central bank and that the government never faces a financing constraint some economists deny this and point to the long-term rate of interest which they claim is under the control of the market. They say that if market participants decide to put the squeeze on the government they can raise the long-term rate of interest.
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What We Read Today 21 December 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.
Treasury sells entire Ally stake, ends auto rescue (Hailey Lee,CNBC) The U.S. Treasury Department will sell its remaining 54.9 million shares of Ally Financial acquired under the government's bailout of the auto lender, Ally said on Thursday. This is the final nail in the coffin that will bury TARP (Troubled Asset Relief Program of 2008). According to this article TARP disbursed a total of $426.4 billion, mostly in late 2008 and early 2009. Recovery by the government has been slightly larger than that, $441.7 billion. So the total return on the nearly six-year program was 3.6%.
True Friendship: Monkey resuscitates electrocuted friend on train tracks
A monkey saved the life of one of his fellow primate friends when the animal lost consciousness after being electrocuted on train tracks in the northern Indian city of Kanpur, Sunday. The monkey was electrocuted while running over a high voltage power cable on the train tracks at Kanpur station. Rendering the animal unconscious, the monkey's savior repeatedly bit the stunned primate and dipped it in a pool of water in order to resuscitate him.
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The Week Ahead: Pundit Time for the Holidays
by Jeff Miller, A Dash of Insight
With little fresh news during the holidays and many pros on vacation, I expect a time of reflection and prediction. Publications hungry for content and TV producers needing to fill slots will highlight forecasts of any and all flavors. This happens every year, but the mid-week holidays are pushing it a little earlier than usual:
It is time to start the pundit forecasts for 2015!
Click for larger and complete image at OXO Advisory Group.
Indecision for the Dollar?
US Dollar Index Daily Chart Analyses
by Erik McCurdy, Prometheus Market Insight
The following technical and cycle analyses provide short-term forecasts for the US dollar index. For intermediate-term outlooks see the latestintermediate-term forecast and for long-term outlooks see the latest long-term forecast.
Click to see complete picture at John Lund Photography.
Why the Price of Silver Was Up Recently
Money Morning Article of the Week
by Jim Bach, Money Morning
Three factors explain why the price of silver was two weeks ago - its third-biggest weekly jump of the year.
The spot price of silver has climbed 5% since two weeks ago Friday. It closed at $17.095 an ounce Thursday 11 December 2014.
The Chinese Dream for Higher Education and the Dilemma It Presents
by John Morgan and Bin Wu, The Conversation
The number of university students in China, including those in part-time higher adult education, expanded from 12.3m students in 2000 to 34.6m in 2013. China has become an exceptional example of increasing access for students to higher education - but this expansion has also been accompanied by some unexpected and even negative consequences.
Ukrainian Approval Of Russia's Leadership Nosedives
from Felix Richter, Statista.com
by Niall McCarthy
Ukrainians' traditionally high approval ratings of Russia's leadership have taken a nosedive over the past year following the annexation of Crimea and subsequent violence in the east of the country.
Investor Bulletin: Broker's Miscellaneous Fees
from the Securities and Exchange Commission
The SEC's Office of Investor Education and Advocacy is issuing this bulletin to make investors aware of the miscellaneous fees charged by some brokers. When you use a broker to buy or sell securities, your charges will generally fall into two categories:
- a commission or markup associated with the trade; and
- in some cases, miscellaneous fees for other expenses.
Infographic of the Day: Theoretical Limits
Everything has a limit - meet the minimums and maximums of our universe.
Earnings and Economic Reports: Week Starting 22 December
Written by Merlin Rothfeld, Online Trading Academy
Econintersect: Here is a day-by-day rundown of the global economic calendar events for the coming week and the important earnings announcements each day, as well.
Video presentation follows the Read more >> jump.
Merlin Rothfeld
Priceless: the Inefficient, but Merry Economics of Christmas
by Kevin Albertson, The Conversation
Fingers crossed, we are soon to be inundated with Christmas joy disguised as presents from our family and friends. I received my first card more than a week ago and a present - now sitting under the tree - from our eldest, wee Jimmy (now not so wee and living away from home in his own flat). I found this particularly gratifying as I had told Jim, that he didn't have to buy a present. I had hoped he would wantto send a present. The fact that the gift was not required, but offered freely, makes it the more valuable.
Media Reports It Wrong Again - Housing Starts Actually Plunged In November
by Lee Adler, Wall Street Examiner
Don't believe everything you read in the mainstream media. Especially don't believe anything in the financial news media until you've looked at the data yourself. It's no wonder investors are so often caught flatfooted in the markets. Financial 'journalists' feed their readers and viewers a constant stream of misinformation and bad data. Financial reporters are so atrocious at serving their audience I have to believe that they are, wittingly or unwittingly, part of a deliberate and elaborate campaign of disinformation dot-dot-dot unless you believe in Coincidence Theory.
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More Evidence the Fed Has Been a Failure
by John P. Cochran, Mises.org
More evidence which supports a yes answer to the question "Has the Fed Been a Failure?" (Cato Institute Working Paper No. 2 (December).
Thomas L. Hogan writing on the Sound Money Project blog highlights his forthcoming paper in theJournal of Macroeconomics, "Has the Fed Improved U.S. Economic Performance?."
Trefis: Highlights Week Ending 19 December 2014
Written by Trefis
Below is a summary of the activity at Trefis during the past week that Trefis thought Econintersectreaders would find interesting.
Trefis is a financial community structured around trends, forecasts and insights related to some of the most popular stocks in the US. It provides the unique feature of allowing the user to model future valuation based upon projected changes in components of each business. It also provides communication capabilities among members, including consensus of member analysis compared to Trefis staff analysis and blogging opportunities for members.
Click on graphic for larger image and go to
Trefis interactive page.
Click "Read more..." to see our clickable table of contents with the most covered companies (more than 1 article) of the week identified.
One European Country Is Not Excited About Christmas
from Felix Richter, Statista.com
by Niall McCarthy
Christmas excitement is building around the world, especially in Europe where hot wine is flowing at Christmas markets and the pace of shopping is accelerating.
