Keyword: investing

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  • Was NAFTA Really So Bad for the Economy? Will NAFTA Come Back to Haunt Hillary Clinton?

    09/30/2016 4:32:46 AM PDT · by expat_panama · 91 replies
    The Fiscal Times ^ | September 28, 2016 | Janna Herron
    ...Trump called the trade agreement between Canada, Mexico and the United States “the single worst trade deal ever approved in this country” during the first presidential debate against Hillary Clinton. Earlier this year, Bernie Sanders leveled a similar criticism, calling it disastrous when debating the former secretary of date... ...But whether NAFTA has been good or bad for the U.S. economy depends largely on who you ask... ...NAFTA “means jobs. American jobs, and good-paying American jobs. If I didn't believe that, I wouldn't support this agreement,” then-President Clinton said in 1993. Fast forward more than two decades later and NAFTA...
  • HEDGE FUND LEGEND JULIAN ROBERTSON: Everything is in a bubble and it will end in 'chaos'

    09/29/2016 4:06:55 AM PDT · by expat_panama · 30 replies
    Business Insider ^ | September 28, 2016 | Bob Bryan
    Julian Robertson, the legendary hedge fund manager behind Tiger Management, thinks central banks are fueling bubbles throughout financial markets. "We don't have negative rates here in the States yet, but I think it's tragic that we've taken rates down this far," Robertson said this week at Bloomberg's Surveillance Primetime event. "I know the Federal Reserves all over the world are trying to ensure prosperity, but in doing so I think they are ensuring a huge bubble, which will be pricked, and we will all be hurt by it." Negative and near-zero interest rates from central banks have allowed increased borrowing......
  • Why Yellen may quit if Trump wins

    09/28/2016 3:08:02 AM PDT · by expat_panama · 103 replies
    Market Watch ^ | Sept 27, 2016 12:33 p.m. ET | Steve Goldstein
    Even with two years remaining in her term, Federal Reserve Chairwoman Janet Yellen may quit if Donald Trump is elected president, an economist argued on Tuesday. Paul Ashworth, chief U.S. economist at Capital Economics, said in a note to clients that Trump doubled down on criticism of the Fed during his debate with Hillary Clinton. Trump said the U.S. economy is in a “big, fat, ugly bubble” and specifically called out Yellen. “And we have a Fed that’s doing political things. This Janet Yellen of the Fed,” he said. “The day Obama goes off, and he leaves, and goes out...
  • Debate Drags Markets Down

    09/27/2016 3:26:22 AM PDT · by expat_panama · 16 replies
    Barchart ^ | September 27, 2016 | Nick Mastrandrea
    Good Morning Traders, As of this writing 4:30 AM EST, here’s what we see:US Dollar: Dec. USD is Up at 95.225.Energies: November Crude is Down at 45.57.Financials: The Dec 30 year bond is Up 2 ticks and trading at 168.10.Indices: The December S&P 500 emini ES contract is 33 ticks higher and trading at 2148.00.Gold: The October gold contract is trading Down at 1336.30. Gold is 35 ticks lower than its close.Initial Conclusion This is not a correlated market.... ...Could this change? Of Course. Remember anything can happen in a volatile market. Commentary Yesterday the markets made it very clear that...
  • 'Bernie' Clinton's Massive Tax Hike Is Based On Greed And Envy

    09/26/2016 3:55:08 AM PDT · by expat_panama · 3 replies
    Investors Business Daily ^ | 9/23/2016 | Steve Moore
    Greed A selfish and excessive desire for more of something (as money) than is needed. ‎ A continual lust for more. Envy A feeling of resentful longing aroused by someone else's possessions or qualities or wealth. Someone might want to tell Hillary Clinton that greed and envy are two of the seven deadly sins. She's guilty of both. Her revised tax plan‎ would raise the estate tax to as high as 65% -- up from 40% today. She would also apply the hated death tax to as many as twice the number of estates. It's one of her dumbest ideas...
  • Duck And Run—-The Robot Doth Blather [YELLEN & HER FED]

    09/26/2016 3:48:40 AM PDT · by expat_panama · 2 replies
    david stockman's contracorner ^ | September 23, 2016 | David Stockman 
    Listening to Janet Yellen splitting hairs and blathering in circles about the state of the economy yesterday was enough to put you in mind of a paint-by-the-numbers robot built in the labs at MIT and programmed by its Keynesian economics department. After all, the latter has also inflicted on the world Paul Samuelson, Stanley Fischer, and his infamous student, Ben Bernanke.So why not a four-fer?There is only one question that Yellen needs to answer and then all else is readily explained. To wit, does she actually believe that the money market rate——as formerly measured by Fed funds before Bernanke nationalized the interbank market in September 2008——is a wholly owned property of the...
  • Clinton-Trump debate showdown carries potential to sock stocks

    09/26/2016 3:43:13 AM PDT · by expat_panama · 8 replies
    Market Watch ^ | Sept 24, 2016 8:30 a.m. ET | Wallace Witkowski
    Will the gloves come off Monday, and the wheels fall off stocks Tuesday? Investors will be keeping a close eye on the first of the presidential debates between Democrat nominee Hillary Clinton and GOP nominee Donald Trump for signs of a momentum shift in the heated race. The outcome from the head-to-head matchup carries the potential to deliver a jolt to U.S. equity markets coming off closely watched policy decisions by central bankers. Stocks finished the week higher, even with a Friday downturn... ...the debate may be, outside of another important meeting of major oil producers, the most important event...
  • Low Gender-Pay Complaints Are An Admission of Subpar Talent

    09/23/2016 3:50:01 AM PDT · by expat_panama · 52 replies
    Real Clear Markets ^ | September 23, 2016 | John Tamny
    "Yeah, you're a genius, everyone knows it, a goddamn genius, but that's why you failed as a head coach - that's why you'll never be a head coach ... some genius." Those were the words of head NFL coach Bill Parcells to then assistant, and at the time once-failed (with the Cleveland Browns) head coach, Bill Belechick. During a game Belechick had suggested a defensive scheme that Parcells rejected, only for Belechick to be proven correct. Parcells' irritated reply revealed a now dated view among some football types about Belechick; that while he was in possession of a brilliant defensive...
  • The global economy The low-rate world Central banks have been doing their best to...

    09/23/2016 3:39:53 AM PDT · by expat_panama · 5 replies
    The Economist ^ | Sep 22th 2016 | Editorial
    THEY do not naturally crave the limelight. But for the past decade the attention on central bankers has been unblinking—and increasingly hostile. During the financial crisis the Federal Reserve and other central banks were hailed for their actions: by slashing rates and printing money to buy bonds, they stopped a shock from becoming a depression. Now their signature policy, of keeping interest rates low or even negative, is at the centre of the biggest macroeconomic debate in a generation. The central bankers say that ultra-loose monetary policy remains essential to prop up still-weak economies... ...But a growing chorus of critics...
  • Fed “forward guidance” blows too much smoke

    09/23/2016 3:32:54 AM PDT · by expat_panama · 1 replies
    Reuters ^ | September 22, 2016 | Gina Chon
    The U.S. Federal Reserve is still enabling financial markets. The central bank on Wednesday again declined to raise rates, despite recent remarks from Chair Janet Yellen suggesting an increase was becoming more likely. The Fed counts talking to the market – what it calls giving “forward guidance” – as one of its tools, but the story has changed so often that Yellen and her colleagues might do better being less chatty. The Fed initially signaled four rate hikes in 2016 after raising the range for the federal funds rate to 0.25 percent to 0.5 percent last December... ...the U.S. economy...
  • UN fears third leg of the global financial crisis - with prospect of epic debt defaults

    09/22/2016 3:57:08 AM PDT · by expat_panama · 2 replies
    U.K. Telegraph ^ | 22 SEPTEMBER 2016 • 7:22AM | AMBROSE EVANS-PRITCHARD
    The third leg of the world's intractable depression is yet to come. If trade economists at the United Nations are right, the next traumatic episode may entail the greatest debt jubilee in history. It may also prove to be the definitive crisis of globalized capitalism, the demise of the liberal free-market orthodoxies promoted for almost forty years by the Bretton Woods institutions, the OECD, and the Davos fraternity. "Alarm bells have been ringing... ...money was wasted, skewed towards "highly cyclical and rent-based sectors of limited strategic importance for catching up," it said. Worse yet, these countries have imported the deformities...
  • Divided Fed Holds Off On Rate Hike, Sees Slower Tightening Path

    09/22/2016 3:42:30 AM PDT · by expat_panama · 16 replies
    Investors Business Daily ^ | September 21, 2016 | JED GRAHAM
    The Federal Reserve left interest rates unchanged Wednesday after its two-day policy meeting, as expected, and longer-term rate projections show an even slower pace of increases. Still, policymakers painted a mostly upbeat picture about the job market and overall growth and signaled that the Fed's key rate will rise before year-end. Markets have increasingly been pricing in a December hike... ...Fed's forecasts show policymakers expect three rate hikes through the end of 2017, down from five at their June meeting. The estimate for the fed funds rate in 2017 has slipped to 1.1% in 2017 from a 1.6% view in...
  • Robert J. Samuelson: The Last Days Of Free Trade?

    09/22/2016 3:38:26 AM PDT · by expat_panama · 60 replies
    Investors Business Daily ^ | September 21, 2016 | ROBERT J. SAMUELSON
    Guess what? A President Trump could adopt his new trade agenda without any authorization from Congress -- and this could trigger a global trade war and a deep U.S. recession. Policies that promise to make us stronger economically could do the opposite. That's the main take-away of a study... ...Trump could implement most of his proposals, which repudiate decades of pro-trade policies, by executive order. So contends Peterson's Gary Hufbauer after a review of trade laws. Over the past century, Hufbauer says, Congress has passed many laws that "authorize the president to impose tariffs...... ...Trump's bluster may simply be a...
  • China Is Digging Itself into a Deeper Hole

    09/21/2016 5:18:22 AM PDT · by expat_panama · 10 replies
    John Mauldin ^ | Sept. 19 2016 | John Mauldin
    Chinese “depreciation” and all its ensuing hysteria occurred just about a year ago. It has also been a about a year since I co-wrote a book on China with Worth Wray titled A Great Leap Forward? The title was meant to be ironic. The original Great Leap Forward was imposed by Mao in the 1960s. It was one of the most economically disastrous times in Chinese history. Food production increased, yet 30 million people starved. China underwent a true financial and economic crisis due to the insanity of central control of markets. China now attempts something that is as powerful...
  • Betsey McCaughey: What's In Your Wallet?

    09/21/2016 3:52:02 AM PDT · by expat_panama · 9 replies
    Investors Business Daily ^ | September 20, 2016 | BETSY MCCAUGHEY
    The choice for voters is clear: a tax cut from Donald Trump or a pay cut courtesy of Hillary Clinton. Trump is promising to slash income taxes to zero for millions of people currently paying them, and to reduce the tax bite on everyone. Clinton isn't cutting income tax rates for anyone. Instead, she's campaigning to hike business taxes, despite warnings it will cause wages to plummet and the economy to tank. Betsy McCaughey HeadshotNo wonder Trump is moving up in the polls. Most Americans are still making less than they did in 2007. The mainstream media want to double...
  • Is the Fed politically biased? Look at its interest-rate decisions as elections near

    09/20/2016 5:13:02 AM PDT · by expat_panama · 8 replies
    Los Angeles Times ^ | september 19, 2016 | Jim Puzzanghera and Don Lee
    The presidential election was exactly four weeks away and Federal Reserve policymakers were wrestling with the potential political blowback of lowering a key interest rate to stimulate the economy. One official said he “thought it was conventional wisdom that we weren’t expected to act so close to an election,” according to a transcript of the closed-door Oct. 6, 1992 meeting. Another said that there was “a strong argument that the credibility” of the rate-setting Federal Open Market Committee “would be hurt by our doing something close to an election.” Video: Where Candidates Stand on the Fed Finally, Fed Chairman Alan...
  • Stock investors, don’t despair if Donald Trump wins A new four-year cycle is about to begin...

    09/20/2016 4:05:28 AM PDT · by expat_panama · 10 replies
    Market Watch ^ | Sept 20, 2016 6:11 a.m. ET | Mark Hulbert
    CHAPEL HILL, N.C. (MarketWatch) — I’ll start with the bad news: The fourth year of the presidential election-year cycle is about to end, and year No. 1 of a new cycle is about to begin. And you can only guess what that means. But there also is some good news: What you know about the first year of the cycle is most likely wrong: First years do not automatically spell doom..... ...two features of that record that suggest we shouldn’t write off the stock market’s near-term prospects. First, as you can see in the chart at the top of this...
  • Robert J. Samuelson: The Old Fed Is Dead

    09/19/2016 5:48:18 AM PDT · by expat_panama · 35 replies
    Investors Business Daily ^ | September 17, 2016 | ROBERT J. SAMUELSON
    The betting is that the Federal Reserve won't raise interest rates at this week's meeting of the Federal Open Market Committee, its key policymaking body. There are already complaints that the Fed, which cut short-term rates to near zero in late 2008, is waiting too long to reverse low rates. Last December, the Fed increased rates by a quarter of a percentage point. It hasn't done anything since. "The Fed will make a major mistake if it doesn't raise rates," says economist Mark Zandi of Moody's Analytics. "The job market is strong and very close to full employment. Inflation is...
  • This Big Surprise Will Make Next Week Fed's Interest-Rate Meeting A Lot More Interesting

    09/19/2016 5:42:46 AM PDT · by expat_panama · 5 replies
    http://fortune.com/2016/09/16/interest-rates-inflation-fed/ ^ | September 16, 2016, 4:28 PM EDT | Chris Matthews
    If you’ve noticed the prices of of everyday goods are on the rise, you’re not alone. On Friday the Labor Department announced that the core consumer price index (CPI)—which strips out volatile food and energy costs—rose 2.3% over the past 12 months, up from 1.8% one year ago. “The data help the case for Fed tightening,” writes Jim O’Sullivan, chief U.S. economist for High Frequency Economics. The futures market concurs. It is indicating that the chance of a rate high at or before the Fed’s December meeting is above 50% for the first time in months. But some analysts are...
  • No thank you, Obama The new Census report on income and poverty proves why no thanks are due

    09/19/2016 2:36:17 AM PDT · by expat_panama · 15 replies
    The Washington Times ^ | Sunday, September 18, 2016 | Stephen Moore
    While touting the new Census report on income and poverty in America, Barack Obama took credit for $2 a gallon gasoline, and immodestly shouted to his crowd of supporters: “Thank you, Obama.” I don’t want to sound ungrateful, but given that for eight years your administration has done everything to decapitate the oil and gas industry that gave us low gas prices, sorry, no thanks are in order Mr. President. Even more amazing was Mr. Obama’s victory lap on the income numbers. Yes, incomes for middle class families rose by an impressive 5 percent in 2015. And poverty fell. Thank...
  • If You Want Economic Growth, Vote Republican, Says … Harvard Business School?

    09/16/2016 3:45:49 AM PDT · by expat_panama · 12 replies
    Investors Business Daily ^ | September 15, 2016 | Editorial
    Economy: The latest annual report from the Harvard Business School on the state of U.S. competitiveness says political gridlock is getting in the way of strong economic growth. What it fails to mention is that Democrats are the ones blocking the pro-growth proposals the report advocates. The latest HBS report paints a bleak but accurate picture of the current economy -- lackluster economic and productivity growth, an incredibly slow rate of job creation... ...no meaningful progress on the critical policy steps to restore U.S. competitiveness... ...Don't believe it? Look at the eight-point plan itself and ask yourself which party supports...
  • Who’s Greenspan Calling Crazy?

    09/15/2016 3:57:23 AM PDT · by expat_panama · 29 replies
    New York Sun ^ | September 14, 2016 | Editorial
    So who is Alan Greenspan suggesting is crazy? We ask because, according to the Bloomberg news ticker, the former chairman of the Federal Reserve refused comment when asked to whom he was referring... ...a country to be undermined by — how should I say it — crazies.” No doubt the Democratic Party press is going to start suggesting that the crazies to whom Mr. Greenspan was referring are the Republicans lead by Donald Trump... ...might be prepared to see America default on the federal debt. He said he’d “borrowed knowing that you can pay back with discounts.” That drove the...
  • THE OBAMA ECONOMY Good News! We’re Almost as Rich as 15 Years Ago

    09/14/2016 5:36:08 AM PDT · by expat_panama · 19 replies
    The Daily Beast ^ | September 13, 2016 | David Cay Johnston
    After more than a decade of stagnation and decline, average incomes rose significantly in 2014. Good news—in fact, terrific news—permeates the newest government report on the incomes Americans report on their federal tax returns. After more than a decade in the economic doldrums, with too few jobs and stagnant wages afflicting the vast majority of Americans, average incomes rose significantly in 2014, though the average income remains below the level in 2000. Investors did especially well. Overall, Americans reported significantly more income in 2014 than in 2012 and 2013, my analysis of a new Internal Revenue Service report shows. The...
  • What A Time To Be Alive

    09/14/2016 3:05:10 AM PDT · by expat_panama · 39 replies
    Morgan Housel ^ | Sep 12, 2016 at 4:32 PM | Morgan Housel
    John D. Rockefeller was the richest man the world had ever seen.But for most of his adult life he didn’t have electric lights, air conditioning, or sunglasses. And he never had penicillin, sunscreen, or Advil. This is not ancient history: One in twenty Americans were born before Rockefeller died.The majority of Americans think the next generation of adults will be worse off than their parents.I think of two things when I hear this.One, the pessimists are probably wrong, extrapolating a bad decade into infinity. Two, progress is like compound interest – you don’t even notice it in the short run,...
  • The Left's Lies About U.S. Poverty Exposed

    09/14/2016 2:52:33 AM PDT · by expat_panama · 25 replies
    Investors Business Daily ^ | September 13, 2016 | TERRY JONES
    Each year the U.S. Census Bureau releases its data on poverty. And each year the news seems even worse than the year before. This year is no different, with Census informing us in its annual report that some 43.1 million Americans, or about 13.5% of us, were officially poor in 2015. The number of poor fell during the year as the nation continued to climb out of the economic crater left by the economy's financial implosion in 2008... ...contrary to the rhetoric of the left and the misleading data from the government, the 43 million in poverty number is vastly...
  • Here’s where all the Fed officials stand on an interest rate hike

    09/13/2016 3:39:41 AM PDT · by expat_panama · 28 replies
    Yahoo Finance ^ | September 12, 2016 | Justine Underhill
    Today marks the last day of speeches from Federal Reserve officials before they gather to discuss monetary policy and a potential rate hike at the Sept. 20-21 Federal Open Market Committee (FOMC) meeting. In the final speech before the quiet period begins, Fed Governor Lael Brainard assured the markets that she wasn’t in a hurry to raise rates. Given that low unemployment has failed to increase inflation “the case to tighten policy preemptively is less compelling,” Brainard said. “My main point here is that in the presence of uncertainty and the absence of accelerating inflationary pressures, it would be unwise...
  • How Higher Wages Could Sink the Economy

    09/12/2016 5:13:34 AM PDT · by expat_panama · 3 replies
    The Fiscal Times ^ | September 9, 2016 | Anthony Mirhaydari
    It's no secret that the post-crisis recovery hasn't been so great for the average American. Growth has been uneven. Job gains, while strong, have often been concentrated in areas like bars and restaurants. Wage inflation has been tepid. And yet, costs for things like health care, education and housing have soared. Policymakers have focused, for better or worse, on driving down interest rates and boosting the price of financial assets, lifting corporate profits and the stock market to record highs in the process — but also widening the income and wealth inequality gaps. At long last, there is evidence a...
  • How Hillary Clinton’s health scare threatens the markets [DUMB 1/2 SELLING OFF!!!]

    09/12/2016 3:29:24 AM PDT · by expat_panama · 15 replies
    Market Watch ^ | Sept 11, 2016 5:59 p.m. ET | Brett Arends
    Are you prepared for the unthinkable? Is your portfolio prepared in case Donald Trump, rather than Hillary Clinton, wins the White House on Nov. 8? Very few are. But after this weekend they need to be. The video footage of Hillary Clinton’s health “episode” on Sunday morning is not good. A member of the public, using a cellphone camera, filmed the former secretary of state being helped into a van by aides after apparently being overcome by heat at the 9/11 ceremony. She had left the event abruptly. The so-called “optics” are damaging... ...she is 68 and the Trump campaign...
  • How to Bring Back Manufacturing Jobs

    09/09/2016 6:29:21 AM PDT · by expat_panama · 62 replies
    strategy+business ^ | September 7, 2016 | Daniel Gross
    America has a long-running crisis in manufacturing employment. Quite simply, year after year, the number of people employed in making things declines — the figure is down by nearly 5 million since 1996. And in election years like this one, it is common to hear politicians talk about how they will bring manufacturing jobs back. Across the board — on both sides of the aisle, in every part of the country — there is an overwhelming desire to have more manufacturing jobs. This is partly due to nostalgia and symbolism. But it’s also driven largely by economics: Generally speaking, the...
  • We Didn't Humanize Markets, Markets Humanized Us

    09/09/2016 3:58:47 AM PDT · by expat_panama · 12 replies
    Foundation for Economic Education ^ | Thursday, September 08, 2016 | Steven Horwitz
    Over Labor Day weekend, I saw many friends arguing that labor unions and government intervention “humanized capitalism” by giving us the 8-hour workday, the 40-hour workweek, ending child labor, and so forth. Unfortunately, these folks have their history backward. We didn’t humanize capitalism, it humanized us. The wealth produced by capitalism allowed us to indulge our humanitarianism in ways not possible when so many were living on the edge of survival. You can’t have 8-hour workdays, 40-hour work weeks, and no child labor, until the material conditions exist to make such changes feasible for a large number of people. Workers...
  • Even Monetary Authorities Think We're In a Depression

    09/09/2016 3:55:45 AM PDT · by expat_panama · 33 replies
    Real Clear Markets ^ | September 9, 2016 | Jeffrey Snider
    You probably aren't aware because it isn't a topic that gets discussed much if at all on the outside, but increasingly even monetary policymakers are coming around to the idea that we are in a depression. What choice do they have, really, since practically any chart of any economic account in any economy shows as much. The gathering in Jackson Hole late last month was really an internal discussion in how to think about keeping current central bank frameworks alive in such a world. Earlier this week, San Francisco Fed President (and CEO) John C. Williams spoke in Nevada on...
  • Victor Davis Hanson: Trump Up, Hillary Down, Obama Out

    09/08/2016 4:00:24 AM PDT · by expat_panama · 41 replies
    Investors Business Daily ^ | September 8, 2016 | VICTOR DAVIS HANSON
    In most presidential elections, the two candidates spar over issues. The president campaigns for his party's nominee in hopes of continuing his legacy. Democrats champion liberalism, Republicans conservatism. In numerous press conferences, journalists try to force newsworthy and embarrassing admissions from the two candidates. Not this year. Barack Obama, who less than two years ago dipped to 40% in approval rating, is nowhere to be seen. He seems to know that the more he is absent and quiet, the more the public likes the idea rather than the reality of him as president -- and his approval rating has risen...
  • Companies Finally Start Fighting Back Against Organized Shakedowns

    09/08/2016 3:54:28 AM PDT · by expat_panama · 8 replies
    Investors Business Daily ^ | September 8, 2016 | Editorial
    Justice: Three recent court victories got little in the way of headlines, but should be required reading for every corporate executive in the country. In each, companies refused to do what so many have done before -- tuck their tails in and settle out of court. Exhibit A is a case involving Texas-based Professional Janitorial Service and its yearslong battle with the Service Employees International Union. As it has done countless times before, the SEIU targeted the company with a vicious, all out "corporate campaign," designed to ruin the company's reputation and starve it of business, until it submitted to...
  • US recession jitters stoke fears of impotent Fed and fiscal paralysis

    09/08/2016 3:49:42 AM PDT · by expat_panama · 13 replies
    The Telegraph ^ | September 2016 • 10:20pm | Ambrose Evans-Pritchard
    Debt terrifies people but the paradox of macro-economics is that sometimes borrowing even more is the best way out Credit: Jon Elswick An ominous paper by the US Federal Reserve has become the hottest document in high finance. It was intended to reassure us that the world's hegemonic central bank still has ample firepower to overcome the next downturn. But the author was too honest. He has instead set off an agitated debate, and rattled a lot of nerves. ... ...federal debt is already 105pc of GDP - up from 54pc... ...nagging question is what happens at the onset of...
  • The Cost of Keeping Companies in the United States [BUILDING A WALL TO KEEP US IN!]

    09/07/2016 3:39:47 AM PDT · by expat_panama · 46 replies
    New York Times ^ | SEPT. 6, 2016 | BRENT GLOVER and OLIVER LEVINE
    How should we stop corporations from leaving the United States, as both presidential candidates have vowed to do? After Pfizer announced this year that it wanted to merge with the Ireland-based Allergan in a maneuver known as a corporate inversion, the Obama administration put in new tax rules that effectively scuttled the deal. President Obama characterized inversions as a way American companies to “get out of paying their fair share of taxes here at home.” Last month, the Chamber of Commerce sued to block the new rules, saying that the administration “simply rewrote the law unilaterally.” We need to put...
  • IBD/TIPP: Economic Hopes Slip, Democrats Feel Blue

    09/07/2016 3:00:41 AM PDT · by expat_panama · 14 replies
    Investors Business Daily ^ | September 6, 2016 | JED GRAHAM
    The IBD/TIPP Economic Optimism Index slipped this month, led by a sharp slide in confidence about the economic outlook over the next six months. Pessimism deepened among Democrats, in particular, with their view of near-term economic prospects sinking to a five-year low. The overall IBD/TIPP Economic Optimism index fell 1.7 points to 46.7, remaining in pessimistic territory below the 50 level since April 2015. The index has been in a narrow range of from 45.5 to 48.7 this year. The index is a composite of three major subindexes that track views of near-term economic prospects, the outlook for personal finances...
  • Misleading Statistics on Income Inequality

    09/06/2016 3:46:35 AM PDT · by expat_panama · 8 replies
    The American Spectator ^ | September 6, 2016, 12:01 am | Thomas Sowell
    ...When we hear about how much more income the top 20 percent of households make, compared to the bottom 20 percent of households, one key fact is usually left out. There are millions more people in the top 20 percent of households than in the bottom 20 percent of households. The number of households is the same but the number of people in those households is very different... ...A little over half of the households in the bottom 20 percent have nobody working... ...Household income statistics can be very misleading in other ways... ...income statistics can show an economic decline,...
  • Robert Samuelson: A New Era Of Labor Scarcity?

    09/06/2016 3:31:25 AM PDT · by expat_panama · 13 replies
    Investors Business Daily ^ | 9/04/2016 | ROBERT J. SAMUELSON
    ...Popular attention focuses on Uber and similar internet-based networks that unite buyers and sellers... ...the gig economy is overrated. It's not the main engine of change. It accounts for only about 0.5% of employment... ...In 2015, these unconventional jobs represented 15.8% of the U.S. total. That's almost one in six. What's more, these "alternative work arrangements" are growing rapidly; in 2005, they were only 10.7% of all jobs. Some industries have long relied on subcontracting (construction, trucking) or temporary work (retailing)... ...The "alternative work arrangements" fall into four categories: (1) independent contractors and freelancers... ...(2) on-call workers who have designated...
  • Slower August Job Growth Will Keep The Fed On Hold In September

    09/06/2016 3:25:20 AM PDT · by expat_panama
    Investors Business Daily ^ | 9/02/2016 | JED GRAHAM
    The U.S. economy added 151,000 jobs in August, the Labor Department said, 24,000 less than expected. The jobless rate held steady at 4.9%. The report was viewed as close to Goldilocks — not too hot, not too cold — because it's likely to keep the Federal Reserve on hold when it meets on Sept. 21. Major stock indexes saw moderate gains after the report. The 10-year Treasury yield dipped slightly after the lower-than-expected job gain, but subsequently turned higher. As of midmorning, markets were pricing in about a 25% chance of an interest-rate hike in September, unchanged from the prior...
  • The Fraud Of Full Employment

    09/03/2016 8:42:56 AM PDT · by expat_panama · 24 replies
    Investors Business Daily ^ | 9/02/2016 | Editorial
    Economy: While a less-than-expected 151,000 new jobs were created in August, the unemployment rate remained at 4.9% -- a level that Federal Reserve and Wall Street economists have deemed "full employment." Sorry, it ain't so. Just last Tuesday, Fed Vice Chairman Stanley Fischer made the unequivocal statement that the U.S. job market is "very close to full employment," so several interest-rate hikes to quell nascent inflation would be in order. "I don't think you can say one and done and that's it," Fischer told Bloomberg TV. A few days earlier, Fed Chair Janet Yellen had also said that the strong...
  • Why low interest rates are now doing more harm than good

    09/03/2016 8:21:58 AM PDT · by expat_panama · 22 replies
    The Telegraph ^ | 2 September 2016 • 9:00pm | Andrew Sentance
    Since the financial crisis, we have become used to living in a world of low interest rates. The official Bank of England interest rate was cut to 0.5pc over seven years ago and now it has been reduced further to 0.25pc. Until recently, it was possible for long-term investors to earn better returns and protect themselves against inflation by investing in government bonds. That is no longer the case. In 2010, a 20-year UK government bond was still offering an annual yield of 4pc, significantly above the 2pc inflation target. Yields dropped to between 2.5pc and 3pc following the euro...
  • Is Trump Wrong about U.S. Trade with Mexico?

    09/02/2016 5:10:40 AM PDT · by expat_panama · 146 replies
    Human Events ^ | Thursday Sep 1, 2016 1:31 PM | Mark Skousen
    “NAFTA is the worst trade agreement we’ve ever made in our history — the worst!”— Donald TrumpOne of Donald Trump’s signature campaign slogans has been “We will build a wall and make Mexico pay for it.”Trump has attracted a lot of voters — though probably not enough to win the election in November — by attacking hallmarks of American success, the principles of free trade and relatively open borders. We are often characterized as a melting pot, a nation of immigrants who are all seeking the American dream.Trump wants to change that and build walls around America, rather than bridges....
  • Money Was Ignored, and the Global Economy Is Ill

    09/02/2016 3:57:21 AM PDT · by expat_panama · 7 replies
    Real Clear Markets ^ | September 2, 2016 | Jeffrey Snider
    The world of the eurodollar system exists primarily in the footnotes. The accounting conventions in place today are tailored for a time that has long since been passed over; more than once. Balance sheets are some good measure of a company doing business in the real economy, though they are practically worthless when applied to the high monetary finance of the late 20th and early 21st centuries. The term "off-balance sheet" may have entered the public consciousness with Enron, but it was just the first visible emblem of eurodollar era fuzziness. To this day, people still have great difficulty understanding...
  • The Fed’s jobs report could hurt Hillary Clinton

    09/02/2016 3:50:27 AM PDT · by expat_panama · 13 replies
    New York Post ^ | August 31, 2016 | John Crudele
    Friday’s employment report will be tricky for both the financial markets and the presidential candidates. Wall Street thinks there were 180,000 new jobs created in August. That would be down sharply from the 255,000 in July, and even lower than the excellent number of jobs created in June. Another healthy jobs report would be good news for Hillary Clinton since she’s the beneficiary of the Obama economic legacy — whether good or bad. But strong job growth would likely clinch a rate hike later this month from the Federal Reserve, which has been itching to raise borrowing costs and has...
  • Why Friday's Jobs Report Is The Biggest Of The Year

    09/02/2016 3:37:13 AM PDT · by expat_panama · 22 replies
    Investors Business Daily ^ | September 1, 2016 | JED GRAHAM
    Wall Street economists expect Friday's jobs report to show that the economy added 180,000 jobs in August as the jobless rate dipped to 4.8%. That would be a solid gain, but not likely strong enough to prompt the Federal Reserve to raise interest rates at its September meeting, especially after Thursday's surprisingly weak ISM manufacturing index. Other details also will be key: What happened to the workweek... ...wage growth is likely to surprise on the upside... ...what would it take to prompt the Fed to action later this month, instead of waiting until December for the next hike, as markets...
  • Companies Continue To Hire Faster Than They're Growing

    09/01/2016 5:25:40 AM PDT · by expat_panama · 15 replies
    Investors Business Daily ^ | September 1, 2016 | ED CARSON
    Private-sector jobs rose solidly once again in August, according to a new report. But yet another regional factory gauge indicated slower growth -- or outright contraction. Meanwhile, housing demand remains strong. Companies have been staffing up in recent months, even as economic growth remains sluggish, creating a puzzle for investors and Federal Reserve policymakers. It's unclear how long that disconnect can continue. But Wednesday's data presage bigger news later this week, including Friday's employment report. ADP Employment Report Companies added 177,000 workers in August vs. views for 175,000. July's gains was revised up to 194,000. Goods-producing industries, including manufacturing and...
  • Robert J. Samuelson: Is Ending Poverty A Mission Impossible?

    09/01/2016 5:18:59 AM PDT · by expat_panama · 45 replies
    Investors Business Daily ^ | September 1, 2016 | ROBERT J. SAMUELSON
    Don't expect a second War on Poverty, regardless of who wins the election. Picking up where Lyndon Johnson left off in the 1960s would seem a logical response to the campaign's relentless criticism of economic inequality. But appearances are deceiving. Most proposals to reduce inequality -- conspicuously from Hillary Clinton -- are aimed at the middle class. Spillovers for the very poor would be mostly incidental. These proposals include: raising Social Security payments; increasing subsidies for early childhood care; reducing -- or eliminating -- college tuition at state colleges and universities; boosting the minimum wage. For his part, Donald Trump...
  • Robert Shiller's Inequality Confusion Is a Catastrophe for Economists

    09/01/2016 4:43:23 AM PDT · by expat_panama · 14 replies
    Real Clear Markets ^ | September 1, 2016 | John Tamny
    Economist Robert Shiller predicted in a recent New York Times piece that economic inequality "could become a nightmare in the decades ahead." He believes that the very economic evolution that has always led to higher living standards for all "could lead us into a world in which basic work with decent pay becomes impossible to find." Shiller cites the proliferation of robots to allegedly bolster the previous statement. Shiller's limp arguments are a reminder of why we should approach the musings of economists in much same way we do the projections of palm readers. To see why Shiller is promoting...
  • Opinion: Get ready for a 5%-10% stock-market drop

    08/31/2016 3:06:18 AM PDT · by expat_panama · 16 replies
    Market Watch ^ | Aug 30, 2016 | Michael Brush
    If you have trades on that you’ve been thinking about selling, it’s time to sell. If you have a lot of margin on, bring it down. If you have little buying power, find a way to raise some. The reason: There’s likely going to be a significant selloff over the next two months. Of course, making short-term market prognostications isn’t easy... ...seven reasons the market looks vulnerable, and what you should do about it. 1. Investors seem too bullish again Sadly, the crowd is often wrong in the market... 2. The media are turning bullish Like investors, market commentators in...
  • Stephen Moore: Our 1 Percent Economy

    08/31/2016 3:04:19 AM PDT · by expat_panama · 11 replies
    Investors Business Daily ^ | Aug 30, 2016 | STEPHEN MOORE
    Have you noticed that Hillary Clinton wants to talk about the economy about as much as she wants to talk about Monica Lewinsky or Benghazi? Here's why: The economy is lousy. Feeble. Barack Obama's own numbers prove it. We got revised GDP numbers from the Commerce Department on Friday and the economy is actually getting worse. The rate of economic growth was slightly less than 1% for the first six months of 2016. No wonder almost half of Americans think we are still in a recession. They are personally in recession. ...best that the mighty American engine of economic growth...