Archive for November 8th, 2017

The gates are shut, the phone line is perpetually busy and you can’t book a room until Feb. 1.

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A rhetorical question for readers of all economic classes: on a normal, disaster-free day, is the American Red Cross your go-to when youre sick, hungry, lacking clothes, or in search of lifes necessities?
To some the mere question might smack of elitism, but it shouldnt. Figure that there are profit-motivated businesses of all kinds in the U.S., and that serve the needs of every income class. Whats crucial is that the good businesses, as in the businesses that enjoy relentlessly rising stock-market valuations, are the ones constantly pushing down the price of…

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It was 10 years ago that our financial system began to unravel after years of recklessness on Wall Street and neglect by regulators and policymakers, plunging our nation into a deep recession. Millions lost their homes and jobs, cities and towns across the nation were devastated, and trillions of dollars in wealth were stripped away from hardworking families and businesses. The aspirations of millions of Americans were crushed in the financial assault on our nation, with all too many still struggling economically from the fallout of the crisis.
Now, just a decade after financial disaster…

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It’s not every day a titan of industry predicts the demise of his own.

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Bitcoin surged by 10 percent on Wednesday to hit an all-time high just shy of $8,000 after online reports that an upgrade to the cryptocurrency's software planned for next Thursday had been suspended.

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Once again this week President Trump blamed a free trade deal for a trade deficit. This time the alleged culprit was the South Korea-U.S trade agreement (KORUS). Last week it was NAFTA. But trade deficits do not stem from bad or unfair trade deals. Trade deficits arent even necessarily a bad thing.
Trade deficits do not equal a sluggish economy, and trade surpluses do not necessarily indicate a robust one. Over the past two years, more than half of the 35 nations belonging to OECD, the rich countries club, have run trade deficits. More than half of the G7 have also run trade…

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Repeating for emphasis.
The spread between the two- and ten-year U.S. notes has fallen to 68 basis points — that’s the lowest print in ten years and if history is a guide it is signaling a potential domestic economic slowdown.
The flattening in the yield curve is happening despite a likely continued Federal Reserve tightening and a rise back to December levels for overnight index swaps (OIS).
It was back in 2004 — as the Fed started its tightening cycle (that concluded in Summer, 2006) — that both the curve flattened and the five year OIS rose.
At the conclusion of the tightening in the…

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