My afternoon train reading:

• Fed Easing Seems Likely, But of What Form? (Tim Duy’s Fed Watch)
• Risks Rise as Europe’s Banking Ties Fray (WSJ) see also BofA Merrill Lynch Fund Manager Survey Shows Investors Moving out of Equities as Caution Takes Grip (Merrill Media Room)
• How Germans Botched the Spanish Bank Bailout (Bloomberg)
• Significance of 200-day moving average (Market Watch)
• Will BrightScope Clean Up The Financial Services Industry? (Nerd’s Eye View)
• Few Homeowners See Benefit From National Mortgage Settlement, Three Months Later (Huffington Post)
• The Fall of an Electric Empire (Echoes)
• Google’s Android has generated just $550m since 2008, figures suggest (Guardian)
• The (Highly Fictionalized) Zuckerberg Nuptials (NYT Magazine)
• The rise of the gay superhero (The Globe and MailI always suspected Batman & Robin had a thing going on . . .

What are you reading?


China’s monetary policy

Source: Economist

Category: Financial Press

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

12 Responses to “10 Mid-Week PM Reads”

  1. willid3 says:

    the house is still wanting to cook the books. after all, the data doesn’t matter
    which sounds a lot like Argentina
    or Greece?

  2. ConscienceofaConservative says:

    Jamie Dimon knew he wasn’t hedging two years ago.

  3. willid3 says:

    did income equality cause the crash?

    Abstract: The recent global crisis has sparked interest in the relationship between income inequality, credit booms, and financial crises. Rajan (2010) and Kumhof and Rancière (2011) propose that rising inequality led to a credit boom and eventually to a financial crisis in the US in the first decade of the 21st century as it did in the 1920s. Data from 14 advanced countries between 1920 and 2000 suggest these are not general relationships. Credit booms heighten the probability of a banking crisis, but we find no evidence that a rise in top income shares leads to credit booms. Instead, low interest rates and economic expansions are the only two robust determinants of credit booms in our data set. Anecdotal evidence from US experience in the 1920s and in the years up to 2007 and from other countries does not support the inequality, credit, crisis nexus. Rather, it points back to a familiar boom-bust pattern of declines in interest rates, strong growth, rising credit, asset price booms and crises.

  4. willid3 says:

    but then maybe it did

    The driving force behind the widening income gap of the last thirty years has been a shift in the distribution of “factor shares” – the way the output of the economy is divided between wages and profits. In the first two decades after the Second World War, a transformed model of capitalism emerged – across the rich world – in which it was accepted that the fruits of growth should be more evenly shared than they had been in the pre-War era. In the US, the share of output allocated to wages rose and stayed high. In the UK the “wage-share” settled at between 58 and 60 per cent of output, a higher rate than achieved in the pre-war era and the Victorian age. It was this elevated wage share that helped drive the “great leveling” of the post-war decades.

    From the late 1970s, the capitalist model underwent another transformation, one characterised by a backward shift in the way the proceeds of growth were divided. By 2007, the share of output going to wages had fallen to 53 per cent in the UK. In the US, the fruits of growth became even more unevenly divided, with the workforce ending up with an even smaller share of the economic cake. There were similar, if shallower trends in most rich nations.

    This process of decoupling wages from output has led to a growing “wage-output gap”, with a very profound, and negative, impact on the way economies function. This is for three key reasons. First, by cutting the purchasing power needed to buy the extra output being produced, the long wage squeeze brought domestic and global deflation. Consumer societies started to lose the capacity to consume.

  5. willid3 says:

    considering that stockman is part of the GOP, its little wonder that he doesn’t acknowledge they caused the 2007 – 2008 debacle. and that starting in the 1980s we trashed workers incomes making a consumer based economy tough to keep going. but we did that using private loans. sold by wall street. but he did admit that wall street is a casino. but thats no new either,

  6. willid3 says:

    some financial myths?

    not sure all of them are right though

  7. mathman says:
    Obama Trade Document Leaked, Revealing New Corporate Powers And Broken Campaign Promises

    ” A critical document from President Barack Obama’s free trade negotiations with eight Pacific nations was leaked online early Wednesday morning, revealing that the administration intends to bestow radical new political powers upon multinational corporations, contradicting prior promises. ”

    See why it doesn’t matter who you vote for (unless it’s a third party candidate, and we all know how that turns out . . .)?

  8. willid3 says:

    guess who is recovering from the crises?

    can you say Iceland? the only ones who stood up the banks.