Posts Tagged ‘Today’
Posted on February 2, 2012 - by invest
Why the Dow Is Up Today
Jobs data boost stocks.
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Posted on November 5, 2011 - by invest
Today in wry observations
DOING a bit of background research for a piece on the euro zone, I stumbled across this:
Inspiration for the € symbol itself came from the Greek epsilon (Є) – a reference to the cradle of European civilisation – and the first letter of the word Europe, crossed by two parallel lines to ‘certify’ the stability of the euro.
Quite.
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Posted on November 5, 2011 - by invest
Today in wry observations
DOING a bit of background research for a piece on the euro zone, I stumbled across this:
Inspiration for the € symbol itself came from the Greek epsilon (Є) – a reference to the cradle of European civilisation – and the first letter of the word Europe, crossed by two parallel lines to ‘certify’ the stability of the euro.
Quite.
View full post on Free exchange
Posted on October 24, 2011 - by invest
Today in central banking
THE Bank for International Settlements, often called the central banker’s central bank, is a bastion of conservatism and policy orthodoxy. Unsurprisingly, the BIS is not particularly comfortable with the central bank policy interventions that have been adopted as a response to demand-side weakness at the zero lower bound. And unsurprisingly, the BIS (which demanded in June that “growth must slow”) is laying out an intellectual framework to help justify inaction. Here is Claudio Borio:
There is considerable cross-country evidence that banking crises tend to be preceded by unusually strong credit and asset price booms (see below), that those crises go hand-in-hand with permanent output losses (BCBS (2010)), and that subsequent recoveries tend to be slow and protracted (eg Reinhart and Rogoff (2009), Reinhart and Reinhart (2010)). In all probability this reflects a mixture of an overestimation of potential output and growth during the boom, the corresponding misallocation of resources, notably capital, the headwinds of the subsequent debt and real capital stock overhangs, and disruptions to financial intermediation. Fiscal expansions in the wake of the crises can add to these problems, by piling government debt on top of private debt and sometimes threatening a sovereign crisis.
All this reduces the effectiveness of monetary policy in dealing with the bust and exacerbates its unwelcome side-effects. These become apparent once the easing is taken too far after averting the implosion of the financial system. The economy needs balance-sheet repair, but very low interest rates together with ample central bank funding and asset purchases delay the recognition of losses and the repayment of debt. Too much capital has been accumulated in the wrong sectors, but the easing tends to favour investment in the very longlived assets in excess supply (eg construction). The bloated financial sector needs to shrink, but the easing numbs the incentives to do so and may even encourage punting. The financial sector needs to generate healthy earnings, but as short-term interest rates approach zero and the yield curve flattens, they compress banks’ interest margins unless banks take on more interest-rate and, possibly, sovereign risk; and as long-term rates decline, they can generate strains in the insurance and pension fund sectors. Thus, as the easing continues, it raises the risk of perpetuating the very conditions that make eventual exit harder. A vicious circle can develop.
Put differently, when dealing with major financial busts monetary policy addresses the symptoms rather than the underlying causes of the slow recovery. It alleviates the pain, but masks the illness. It gains time, but makes it easier for policymakers to waste it.
It’s a neat little story, but there is remarkably little substance to it.
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Posted on April 17, 2011 - by invest
Should You Sell Terra Nitrogen Today?
We’re seeking danger signs among Fools’ most beloved stocks.
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Posted on February 2, 2011 - by invest
Today in regressive voluntary taxes
IN WIRED, Jonah Lehrer discusses the logic of lotteries and writes:
While approximately half of Americans buy at least one lottery ticket at some point, the vast majority of tickets are purchased by about 20 percent of the population. These high-frequency players tend to be poor and uneducated, which is why critics refer to lotteries as a regressive tax. (In a 2006 survey, 30 percent of people without a high school degree said that playing the lottery was a wealth-building strategy.) On average, households that make less than $12,400 a year spend 5 percent of their income on lotteries—a source of hope for just a few bucks a throw.
That seems like crazy behaviour on the part of the very poor, and yet it fits nicely with the bee sting theory of poverty. Does it make you think paternalistic thoughts? Should it?
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Posted on December 17, 2010 - by invest
Daily Tape: Get Connected & Start Making Better Investments In The Stock Market Today.
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Posted on December 12, 2010 - by invest
Should You Sell Sohu.com Today?
We’re seeking danger signs among Fools’ most beloved stocks.
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Posted on November 24, 2010 - by invest
The Cheapest Industry Leader in the Market Today
There are still stock gains to be made in this sector.
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Posted on October 18, 2010 - by invest
40+ Jobs in Social Media You Can Apply for Today
40+ Jobs in Social Media You Can Apply for Today
If you’re seeking a job in social media, we’d like to help out. For starters, Mashable’s Job Lists section gathers together all of our resource lists, how-tos and expert guides to help you get hired. In…
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