One of the arguments that consumers remain health is that “debt-to-income” ratios are at 40-year lows. Unfortunately, it is an illusion caused by the rising “wealth gap” in America by the top-10% of income earners.
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While you are likely confident why your candidate is the best choice, and the opposition is the worst, when it comes to economic prosperity and the financial markets, it is generally better to focus on the “policies,” and not the “politics.”
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While the recent drop in unemployment claims was celebrated by the markets and media, it shouldn’t have been. The drop in unemployment claims occurred for the wrong reason.
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The Federal Reserve believes recessions “are bad.” and have gone to great lengths to avoid them. However, what if “recessions are a good thing,” and we just let them happen?
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Economists have come up with every variation of applying a letter of the alphabet to the economic recovery. Whether it’s an “L,” a “W” or a “V,” there is a letter that suits your view. But what is a “K”-shaped recovery?
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Will more fiscal stimulus really cure what ails the economy? Or, will more debt, bigger deficits, and more spending, continue to lead us down the same path we have seen over the last three decades.
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The 2019 Fed survey confirms statements made previously regarding about how the Fed’s monetary interventions made the top 10% more prosperous than ever, and left the rest of Americans behind.
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The amount of outstanding debt, and the subsequent deficit, has long been a problem in the U.S. With each passing year, growth rates weaken, and economic prosperity worsens. The latest CBO report substantiates the problem.
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In the latest personal income and spending reports, income was down but spending was up even as stimulus measures run out.
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“Enormous Uncerntainty.” Such is despite a surging stock market from the March lows, trillions in liquidity support from the Fed, and a rebound in economic activity. So, what’s the problem?
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The darkening mood is not surprising. The Fed has great faith in surveys and expectations except when they contradict Fed group think. This applies even to its own surveys.
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Executives will not hire until they see sustainable sales growth and employees will not spend until they feel confident about their job future
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For now, my life depends on NYC’s fate. I neither want to witness its destruction nor miss its renaissance. This is a trade I want to get right. So what’s it going to be New York? It’s up to you (us).
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While the August jobs report was better than expected, a litany of discrepancies cast serious doubt on the report and the strength of the recovery.
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At the recent Jackson Hole Economic Summit, Jerome Powell unveiled the Fed’s new monetary policy designed to create inflation. Unfortunately, there are 5-reasons why the Fed will not get inflation, and why deflation is the bigger risk.
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The probability of a “V-shaped” economic recovery is very low.
For Q2-2020, US GDP experienced its worst-ever contraction of 32%. The key question is how fast will it recover?
We have two economies interlocked but separated by contrasting sets of life experiences. One lives in relative peace, and prosperity. The other is stressed, financially insecure, and virus vulnerable.
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Just how overstated are new home sales? Year-to-date new home sales total 450,000. That is the 6th consecutive increase January through July. Something just doesn’t add up.
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The Fed is encouraging investors to pick up their speed despite extremely hazardous conditions. While many appear to trust the Fed, the Fed cannot eliminate risk.
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Seven words have been the hallmark of every socialist and communist system: “I’m the Government, I’m here to help.” We review of the Tytler cycle and why more Government help, always leads to less prosperity and freedom.
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Government spending comes at a cost in the future. The effects of the rest of the economy are likely to hit much sooner. The bottom line- the recession or depression will have a lasting and negative effect on growth for years to come.
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Employment rose by 1.8 million in July, nearly in line with the economic consensus. However, looking below the headlines the report was not nearly as strong as it seems.
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A CNBC article states the Fed is expected to make a major commitment to ramping up inflation. While the Fed may want inflation, their very actions continue to be deflationary.
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Markets are more fragile today because of a hovering Fed parent, shielding investors from every hazard. The second and third-order effects continue to evolve, but the volatility in the first quarter offered a glimpse of disturbing possibilities.
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Could a universal basic income could permanently make U.S. economy trillions of dollars larger. While such socialistic policies sound great in theory, history, and data, show it isn’t the economic savior it is touted to be.
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Roughly 130 million people are receiving some form of pandemic aid. Those with no pay or little pay will be hammered this week as benefits run out.
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Consumers play an important role in driving economic growth. Can they recover and bail out the economy?
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Despite the surging stock market from the March lows, trillions in liquidity support from the Fed, retirement confidence declined.
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Lacy Hunt at Hoisington Management explains the deflationary consequences of the current global situation in its Second Quarter 2020 Review. Hunt commented on the four economic challenges central bankers face in a globally synchronized recession.
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Many renters who were in the market to buy a home pre-Covid just threw in the towel. 43% of prospective home buyers who said they changed their plans quoted economic uncertainty as the top reason for doing so, followed by loss of income as the second most cited reason.
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