My afternoon train reading:
• S&P 500 Returns to Record While U.S. Treasuries Advance (Bloomberg) but see S&P 500 Revenues Disappoint (Dr.Ed’s Blog)
• I Was Wrong: Doug Kass Gives Mea Culpa on Bearish Views (Moneybeat)
• The New Buyers of ETFs (Wealth Management)
• Alternative Marketing for Alternative Investments (Social Science Research Network)
• Interview With Estimize Founder Leigh Drogen (See It Market)
• Federal Rulings Could Make 5 Years Of Non-Judicial Foreclosures Unconstitutional (Mortgage Fraud Investigations )
• How to Humble a Wing Nut (Bloomberg)
• Is This Why TED Talks Seem So Convincing? (priceonomics)
• Why Rational People Buy Into Conspiracy Theories (NYT)
• Change Agents: Walter De Brouwer’s magical tricorder (lohud)
What are you reading?
Wall Street Giants Try a New Business Model
Source: WSJ
Category: Financial Press
Click to enlarge Source: NYT Unbelievable chutzpah: “Thanks to what lawmakers called “gimmicks” and “schemes,” Apple was able to largely sidestep taxes on tens of billions of dollars it earned outside the United States in recent years. Last year, international operations accounted for 61 percent of Apple’s total revenue. Investigators have not accused Apple…Read More
Category: Digital Media, Taxes and Policy
From the Federal Reserve Bank of Chicago: Source: Federal Reserve Bank of Chicago
Category: Federal Reserve, Regulation, Think Tank, Trading
“In 1752, Prime Minister Henry Pelham converted the entire outstanding stock of British debt into consolidated annuities that would become known as consols. The consols paid interest on an annual basis just like regular bonds, but with no requirement that the government ever redeem them by repaying the face value.” -Slate Today we…Read More
Category: Credit, Fixed Income/Interest Rates
My morning reads: • Kudlow: Has Bernanke Gotten the Story Right? (National Review) • Are Market Valuations too High? (Turnkey Analyst) see also Equity Risk Premiums (ERP) and Stocks: Bullish or Bearish Indicator (Musings on Markets) • As rich gain optimism, lawmakers lose economic urgency (Washington Post) • Japan’s New Optimism Has Name: Abenomics (NYT)…Read More
Category: Financial Press
In our day job, we have a Fiduciary relationship with our clients. A Fiduciary has a legal obligation where all actions are performed for the benefit of the client. It is a much higher duty of care than the typical “Suitability” standard, which essentially says you cannot sell Facebook IPO shares to Grandma. We sit on…Read More
Category: Hedge Funds, Investing, Really, really bad calls
What will we do when machines do all the work?
Source: The Job Market of 2045 What will we do when machines do all the work?
Category: Employment, Video
The Geography of Student Debt
Andrew Haughwout, Donghoon Lee, Wilbert van der Klaauw, and Joelle Scally
May 14, 2013
This morning, the New York Fed released its Quarterly Report on Household Debt and Credit for 2013 Q1. The report uses the FRBNY Consumer Credit Panel to show that outstanding household debt declined approximately $110 billion (about 1 percent) from the previous quarter. The drop was due in large part to a reduction in housing-related debt and credit card balances. Meanwhile, delinquency rates for each form of consumer debt declined, with the overall ninety-plus day delinquency rate dropping from 6.3 percent to 6.0 percent.
One of the unique aspects of the FRBNY Consumer Credit Panel, which is itself based on Equifax credit data, is the detail we obtain for each kind of household debt. This quarter, we have taken advantage of the geographic information available in the data set and are introducing a set of maps of our student loan data, which indicate regional variation in several dimensions of student debt. They depict:
- Student loan borrowers as a share of the population. The population with active student loan debts, or “SL borrowers,” as a share of the population with a credit record varies substantially over space. For example, in Hawaii, less than 12 percent of people with a credit report have student debt, while in the District of Columbia over 25 percent do.
- Student loan balances per SL borrower. Student indebtedness is significant for SL borrowers in virtually all states. Educational indebtedness per SL borrower ranges from a low of just under $21,000 in Wyoming to a high of over $28,000 in Maryland. Again, Washington, D.C., stands out: the average SL borrower there owes over $40,000. In general, we find SL-borrower debt levels are highest in California and along the Atlantic and Gulf coasts.
- Percent of balance ninety-plus days delinquent. Delinquency rates show a distinct regional pattern, with states in the south and southwest having generally higher rates than those in the north. The lowest delinquency rate is South Dakota, at just over 6.5 percent, while the highest is in West Virginia, at nearly 18 percent.
Student loan indebtedness and delinquency continue to generate intense interest and we look forward to sharing data and perspectives that help define the scope of this important issue.
Category: Think Tank
click for complete infographic The editors at Best Psychology Degrees decided to research the topic of: The United States of Conspiracy 12 of the weirder things Americans believe. – Barack Obama is the anti-Christ (13%) – A “New World Order” is conspiring to rule the world (28%) – The government covered up a UFO crash…Read More
Category: Digital Media, Psychology, Really, really bad calls
