Posts filed under “Bailouts”
The Standard & Poor’s 500 Index closed yesterday at a record high of more than 2,000. Yet many people feel that the economy is weak. There are numerous reasons for this, but the one I want to focus on has to do with employment and wages.
The economy feels weak because, depending on your education, employment and skill set, it very well may be weak to you. Unlike the typical post-credit-crisis recovery, this one features disappointing gross domestic product gains, subpar job creation, stagnant wages and weak retail sales. However, those represent the average. Different employment sectors have done considerably better or worse, depending on demand and scarcity of workers in that field.
The recovery is here, it just isn’t evenly distributed.
Sheila Bair, former chairman of the U.S. Federal Deposit Insurance Corp., describes what it was like in the room with former Treasury Secretary Hank Paulson and former Federal Reserve Chairman Ben Bernanke when the global economy was on the verge of falling into the abyss in this week’s “Masters in Business” podcast. Listen to the…Read More
On this day in 1987, Alan Greenspan became chairman of the Federal Reserve Board. This anniversary allows us to take a quick look at what followed over the next two decades. As it turned out, it was one of the most interesting and, to be blunt, weirdest tenures ever for a Fed chairman. This was…Read More
Tapering Is Now Tightening David R. Kotok July 19, 2014 For a long time, as we saw it, tapering and the threat of tapering (as in last year’s taper tantrum) did not constitute tightening. Today we explore why we believe the situation has now changed. In order to understand why tapering was not…Read More
Chair Janet L. Yellen: Monetary Policy and Financial Stability At the 2014 Michel Camdessus Central Banking Lecture, International Monetary Fund, Washington, D.C. July 2, 2014 It is an honor to deliver the inaugural Michel Camdessus Central Banking Lecture. Michel Camdessus served with distinction as governor of the Banque de France and was one of…Read More
Source: BCA Today’s chart comes to us from Chen Zhao of the Bank Credit Analyst, who writes in a research report: The financial services industry have (sic) begun to feel the pinch of the fallout from low volatility and zero interest rates. The average return delivered by hedge funds has fallen sharply since the…Read More