Category: Economics

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…

[VIEW FULL POST]

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 –…

[VIEW FULL POST]

WSJ: Steady Hiring Without Wage Gains Deepens Puzzle for Fed

We keep adding jobs and the unemployment rate is extremely low.  So why don’t overall wages rise more that 2-2.5% year over a year?  Holding constant the retirement of high paid baby boomers and millennials entering the work force at starting salaries, we should still normally see more wage growth and tightness in the labor…

[VIEW FULL POST]

NYT: Walgreens Calls Off Deal to Buy Rite Aid

The US government again helps Amazon by limiting whomever might be able to be a real competitor.   As long as prices fall, the US doesn’t seem to care about anti-trust issues. Read the full article in The New York Times

[VIEW FULL POST]