Saturday , 2 November 2024

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The Millennial Cohort: A Look at Their Present Predicament, Their Future Economic Prospects (+2K Views)

Though considered the most educated generation in history, the Millennial generation - young adults between the age of 18 and 29 who make up 25% of America's population - is also living through one of the worst economic crises. From a weak job market to the global economic downturn, are the Millennials cut out for this market? [A look at the infographic below tells the story.] Words: 345

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Relax! Gold Correction Only a Lull Before Surge to $3,000 – $5,000! Here's Why

Our forecast of much higher gold prices depends not one iota on the day-to-day ups and downs, no matter how extreme, in the yellow metal’s price. Instead, the average long-term price is entirely a function of world economic and political developments, which affect the intensity of investor interest (what we might call long-term hoarding demand) and on gold’s own supply/demand fundamentals. [Let me explain further.] Words: 500

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U.S. Financial Problems Have Horrendous Implications for Markets and Systemic Stability – Here’s Why (+2K Views)

Systemic-solvency and liquidity issues continue to plague the Fed and to restrain U.S. economic activity. Bank lending remains impaired, household income has taken a new hit, annual and monthly growth in the broad money supply appears to be stalling, again and U6 unemployment levels are at staggering levels. These ongoing financial problems have horrendous implications for the markets and systemic stability. [Let me explain.]

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Nouriel Roubini: Ignore the Recent Favourable Macroeconomic Data – US Economy to Remain Weak – Here's Why

Recent favourable macroeconomic data has suggested that the U.S. economy could be back on track but the recent uplift in the economy only hides more fundamental problems...[The truth of the matter is that] US economic growth will remain weak and below trend throughout 2012 as a result of net exports continuing to be a drag and the Fed being unable, in the face of political constraints, [to do enough, soon enough,] to help the economy significantly... [Let me explain more fully why that is going to be the case.] Words: 950

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Europe's Scariest Unemployment Chart – Ever

The last time we plotted European youth unemployment...Spain was actually worse off than even Greece...Following the latest economic...update from Greece, however, things are back to normal, as Greek youth unemployment is officially the second one in Europe after Spain to surpass 50%. In other words, Europe's scariest chart just got even scarier [as seen below]. Words: 370

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Financialization: Its Definition, Its Lifecycle and Its Impending Collapse (+7K Views)

Financialization is like the bubonic plague–it constantly needs new victims as it kills off its existing hosts. Housing? Dead, killed by financialization, aided, abetted and powered by the Federal Reserve. Now the Fed wants to “save” what it already killed via financialization–housing–by buying $1 trillion in plague-infested mortgages and brute-force efforts to keep interest rates below inflation, i.e. negative rates.[Let me take this disease analogy further.] Words: 514

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An Inflation Inferno is Expected – but When? (+4K Views)

Daniel Thorn­ton, an econ­o­mist at the Federal Reserve Bank of St. Louis, argues that the Fed’s pol­icy of pro­vid­ing liq­uid­ity has “enor­mous poten­tial to increase the money sup­ply,” result­ing in what The Wall Street Journal’s Real Time Eco­nom­ics blog calls “an infla­tion inferno.” [Personally,] I think it’s too soon to make sig­nif­i­cant changes to a port­fo­lio based on infla­tion fears. Here's why. Words: 550

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