Category: Economics

WSJ: Business-Loan Drought Ends for Banks

This WSJ article highlights the acceleration in U.S. bank lending, which had curiously slowed the last couple of years despite solid economic fundamentals. Reasons for the deceleration included political uncertainty leading up to and after the Presidential election, as well as uncertainty regarding healthcare and tax reform. Now with some more clarity around these issues…

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The Economist: The average American is much better off now than four decades ago

Citing Census Bureau information, politicians and media pundits often claim that Americans are no better off than they were 30 years ago. However, as detailed in this Economist article, a new report by the Congressional Budget Office disputes this claim, painting a rosier picture of American prosperity. Read the full article in The Economist

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Which firms profit most from America’s health-care system

Healthcare has been a great sector in which to invest for many years now. But as The Economist lays out in this article, there are factors in place that may change the source of those high returns, especially for some participants in the industry. Read the full article in The Economist

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The Economist: Steven Pinker’s case for optimism

Steven Pinker’s latest book, “Enlightenment Now: The Case for Reason, Science, Humanism and Progress,” posits that the prevalence (and allure) of negative news undermines the amazing progress humanity is making. Nowhere is this more true than the public markets, where the most recent bout of volatility focused the minds of investors (and clients alike) more…

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Economist: Bets on low market volatility went spectacularly wrong

Here is an article from The Economist that details the dangers of structured products, such as Credit Suisse’s XIV which collapsed spectacularly last week. Banks like to sell these products to institutional and high net worth clients because they generate fees for the banks and often times are not well understood by the clients –…

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