Markets

Fed’s Kashkari says the recovery has ‘flattened’ out and warns thousands of small businesses will collapse without further support from Washington

Minneapolis Federal Reserve President Neel Kashkari told CBS “Face the Nation” on Sunday the recovery from the pandemic is stalling and called for more for fiscal aid. He said: “If 11 million Americans can’t pay their bills, can’t put food on the table, can’t make their credit card payments, their […]
Fed’s Kashkari says the recovery has ‘flattened’ out and warns thousands of small businesses will collapse without further support from Washington
Markets

The Fed warned of ‘tragic’ consequences if the US didn’t do more to support its economic recovery. Hours later, Trump killed talks about more stimulus.

Federal Reserve Chair Jerome Powell on Tuesday made his most pronounced call yet for additional relief spending, saying that the risks of passing too little stimulus far outweighed the risks of overspending and that a diminished rebound would be “tragic.” Hours later, President Donald Trump said in a tweet that […]
The Fed warned of ‘tragic’ consequences if the US didn’t do more to support its economic recovery. Hours later, Trump killed talks about more stimulus.
News

‘This is incredibly cruel’: Experts say Trump’s move to end stimulus negotiations could hurt millions of Americans on unemployment and set back the economy

President Donald Trump abruptly ended negotiations over new federal coronavirus spending on Tuesday, all but delaying more aid until at least next month. “It will mean more people dropping into poverty and people making terrible choices between rent, medicine, and food on the table,” Heidi Shierholz, a senior economist at […]
‘This is incredibly cruel’: Experts say Trump’s move to end stimulus negotiations could hurt millions of Americans on unemployment and set back the economy
Markets

Investors should capitalise on the best stock-picking conditions in ‘quite some time’ and buy on any election-related weakness, says an adviser at the world’s largest wealth manager

Investors should capitalise on the best stock-picking conditions in “quite some time” and buy on any election-related weakness, according to UBS’s Frank Panayotou. The financial adviser said on Monday that stocks in healthcare, industrials, consumer discretionary, and global markets look attractive to him right now. Markets will continue to be […]
Investors should capitalise on the best stock-picking conditions in ‘quite some time’ and buy on any election-related weakness, says an adviser at the world’s largest wealth manager
Markets

Mohamed El-Erian says investors should prepare for slower economic recovery and not ‘US lawmakers to come to the rescue’

Economist Mohamed El-Erian said investors shouldn’t be overly reliant on stimulus support from the Federal Reserve or US lawmakers. He said gold and government bonds offer little protection against major sell-offs. Democrats unveiled a $US2.2 trillion stimulus plan this week, but El-Erian said “investors should not expect US law makers […]
Mohamed El-Erian says investors should prepare for slower economic recovery and not ‘US lawmakers to come to the rescue’
Markets

A Wall Street chief strategist details 8 ways today’s economy mirrors the 1980s recession recovery — and how it can lift stocks even higher

Today’s inflation concerns mirror those seen after the 1980 economic slump. And James Paulsen, chief strategist at The Leuthold Group, sees the trend as a boon for markets. The inflation surge seen four decades ago kicked off “a fabulous ‘disinflationary,’ two-decade performance in both the economy and the stock market,” […]
A Wall Street chief strategist details 8 ways today’s economy mirrors the 1980s recession recovery — and how it can lift stocks even higher
Markets

80% of economists see a chance of a double-dip recession, survey finds

Four in five panelists surveyed by the National Association for Business Economics said they see at least a 25% chance of the coronavirus fuelling a second economic downturn, or a “double-dip” recession. Nearly two-thirds of respondents said they viewed the US as still in a recession, and almost half said […]
80% of economists see a chance of a double-dip recession, survey finds
Markets

Obama’s former top economist tells us why it made ‘no sense’ for the GOP to pause stimulus spending — and breaks down what should be in the next aid package

Unemployment remains high and new jobless claims are still above 1 million almost five months into the coronavirus pandemic. Former top Obama economic advisor Jason Furman says Republicans made a mistake in assuming the economy would recover on its own without further government spending. “They have recessed without having acted […]
Obama’s former top economist tells us why it made ‘no sense’ for the GOP to pause stimulus spending — and breaks down what should be in the next aid package
Markets

The pandemic recession is in the rear-view mirror and a new cycle of global expansion has launched, a Bank of America Private Bank senior strategist says

Marci McGregor, senior investment strategist, Chief Investment Office, Merrill and Bank of America Private Bank, told Bloomberg on Monday that the recession is in the rear-view mirror and a synchronised expansion is underway around the world. The strategist pointed to strong trends in housing and the resilient consumer as signs […]
The pandemic recession is in the rear-view mirror and a new cycle of global expansion has launched, a Bank of America Private Bank senior strategist says
Markets

Germany will borrow $246 billion this year to fund its coronavirus stimulus plan

Germany will borrow $US69.8 billion more than expected in 2020 to help fund its coronavirus fiscal stimulus packages, Bloomberg reported Monday. This will bring the country’s borrowing to 218 billion euros ($US245.4 billion) this year, Bloomberg said. Germany announced a 130 billion euro ($US146 billion) stimulus response to coronavirus earlier […]
Germany will borrow $246 billion this year to fund its coronavirus stimulus plan
Markets

US stocks slide as dismal unemployment data offsets new economic stimulus

US stocks sank Thursday as another round of dismal weekly jobless-claims data offset new economic stimulus efforts in Europe. US jobless claims for the week that ended on Saturday totaled 1.9 million, the Labour Department said Thursday. That exceeded the median economist estimate. Continuing claims, which represent the aggregate total […]
US stocks slide as dismal unemployment data offsets new economic stimulus
Markets

US stocks slide as dismal jobless data offsets new European stimulus

US stocks sank Thursday as another round of dismal weekly jobless-claims data offset new economic stimulus efforts in Europe. US jobless claims for the week that ended on Saturday totaled 1.9 million, the Labour Department said Thursday. That exceeded the median economist estimate. Continuing claims, which represent the aggregate total […]
US stocks slide as dismal jobless data offsets new European stimulus
Markets

The ECB just announced $676 billion of new stimulus to fight the coronavirus

The European Central Bank increased its Pandemic Emergency Purchase programme by a further 600 billion euros ($US676 billion) on Wednesday. Markets were largely expecting a 500 billion euros ($US563 billion) increase. The new package takes the ECB’s total announced monetary stimulus to 1.35 trillion euros ($US1.52 trillion). ECB also extended […]
The ECB just announced $676 billion of new stimulus to fight the coronavirus
Markets

Nobel Prize-winning economist Joseph Stiglitz says US stimulus programmes have ‘failed’ — and that policymakers should now focus on preventing a ‘lost generation’ of workers

Nobel Prize-winning economist Joseph Stiglitz said in an interview with CNBC that US stimulus programmes have “failed, and we have to admit that.” The US has launched $US2 trillion worth of stimulus, and another $US3 trillion package is set to be voted on by the Senate. Stiglitz, who won a […]
Nobel Prize-winning economist Joseph Stiglitz says US stimulus programmes have ‘failed’ — and that policymakers should now focus on preventing a ‘lost generation’ of workers
Markets

Germany is planning a fresh $112 billion domestic coronavirus stimulus package, just days after the EU launched its historic $826 billion plan

Germany could launch a fresh package of stimulus of as much as 100 billion euros ($US112 billion) to defend against the coronavirus, Bloomberg reported, just days after the EU proposed a 750 billion euro ($US826 billion) pan-European plan. Germany is reportedly considering measures such as aid for families, car subsidies, […]
Germany is planning a fresh $112 billion domestic coronavirus stimulus package, just days after the EU launched its historic $826 billion plan
Markets

France and Germany’s $550 billion coronavirus rescue proposal is a 21st century Marshall Plan, but it could be dead before it even gets started

Germany and France on Monday proposed a European Recovery Fund worth €500 billion ($US547 billion) to tackle the economic fallout from the coronavirus pandemic. The plan would be the most significant transnational fiscal effort in Europe since the Marshall Plan, which helped rebuild the continent after World War II. Designed […]
France and Germany’s $550 billion coronavirus rescue proposal is a 21st century Marshall Plan, but it could be dead before it even gets started
Markets

‘One of those once in 100 years catastrophic events’: Billionaire Ray Dalio says coronavirus will ‘annihilate’ select parts of the market — and warns further emergency rate cuts will be futile

The coronavirus is a once-in-a-lifetime epidemic that will squash those who don’t defend for a worst-case scenario, Bridgewater co-founder Ray Dalio wrote in a Tuesday LinkedIn post. The billionaire investor pointed to insurance companies offering insurance against the outbreak and investors selling deep out-of-the-money options as those set to face […]
‘One of those once in 100 years catastrophic events’: Billionaire Ray Dalio says coronavirus will ‘annihilate’ select parts of the market — and warns further emergency rate cuts will be futile
News

Alexandria Ocasio-Cortez’s ideas are not so ‘radical,’ but they are changing how Americans think about economics

In an interview with 60 Minutes on Sunday, Democratic Congresswoman Alexandria Ocasio-Cortez discussed some so-called radical economic ideas. Turns out, they’re not so radical. But her opposition will still find them incredibly threatening. That’s because she’s changing a discussion about economics that has gone uncontested for about 40 years, and […]
Alexandria Ocasio-Cortez’s ideas are not so ‘radical,’ but they are changing how Americans think about economics
Markets

GOLDMAN: The Odds Of A Small Fiscal Deal Is On The Rise

Goldman’s Alec Phillips writes in a note to clients that the odds of Congress reaching some kind of “small bargain” is on the rise. It’s way too hopeful to imagine that Congress in this environment would ever be able to reach a broad deal on spending, entitlement, and taxes. But, […]
GOLDMAN: The Odds Of A Small Fiscal Deal Is On The Rise
Markets

There Are 2 Very Bullish Economic Themes Dominating Washington

President Obama signed a deal that would end the government shutdown and raise the debt ceiling. Critics note that under the terms of the deal, we would wind up back here again in a few months. Potomac Research Group political strategist Greg Valliere is not going down that road. “We […]
There Are 2 Very Bullish Economic Themes Dominating Washington
Markets

The 20 Companies Most Exposed To A Government Shutdown

The government has shut down. Historically, the stock market itself usually does fine when this happens. But some some companies are disproportionately exposed to the government, which means a shutdown is bad for business. Goldman Sachs recently published a report listing the stocks of these companies. We pulled the the […]
The 20 Companies Most Exposed To A Government Shutdown
Markets

CHART OF THE DAY: A Government Shutdown Is No Reason To Be Selling Stocks

Stocks are tumbling today, and some pundits are blaming the impending U.S. government shutdown. But this wouldn’t be the first time the government shut down. In fact, the stock market actually rallied during past shutdowns. Below is the chart for the S&P 500 showing what happened in the double-barreled shutdown […]
CHART OF THE DAY: A Government Shutdown Is No Reason To Be Selling Stocks
News

The Sequester Will Be A Shellacking For Consumers And Businesses

During the budget standoff between President Bill Clinton and congressional Republican leaders back in 1995 and 1996, widespread layoffs of federal workers played havoc with the federal bureaucracy and posed serious hardship and inconvenience for millions of taxpayers across the country. Furloughs of as many as 800,000 federal employees temporarily […]
The Sequester Will Be A Shellacking For Consumers And Businesses
News

Daily Show Segment Rails On Absolute Absurdity Of Buying More Tanks

“Sequester” has become the boogie man of the American political body. As a result, Americans in the military, retirees, and Medicare recipients will probably see cuts in their wages or benefits. Meanwhile, Congress pushes for the purchase of 300 new tanks at a cost of $3 billion. General Ray Odierno, […]
Daily Show Segment Rails On Absolute Absurdity Of Buying More Tanks
News

Here’s How Democrats Want To Reduce Deficits By More Than $1 Trillion

[credit provider=”AP”] The Progressive Caucus released a budget proposal this week which would stop the upcoming sequester, and replace the austerity cuts by closing unpopular loopholes and making targeted reductions to the budget. While the plan has literally no chance of passage in Congress, it does provide a good outline of how […]
Here’s How Democrats Want To Reduce Deficits By More Than $1 Trillion
Markets

And Now It’s Time To Pay Attention To The US Fiscal Situation Again…

[credit provider=”Wikimedia Commons” url=”http://commons.wikimedia.org/wiki/File:Mountrushmore.jpg”] The break is over. It’s that time again to shift our attention back to the US fiscal situation.Nomura’s America’s Morning Comment notes the confluence of events (sequester, budget, debt ceiling, new budget outlook) that will begin to dominate.
And Now It’s Time To Pay Attention To The US Fiscal Situation Again…
Markets

The Fiscal Cliff Isn’t The End Of The World

Given all the news coverage and the drama over what is at stake, it can 
be easy to think of going over the fiscal cliff — as the spending cuts take effect and tax cuts finally expire — as the end of the world.
The Fiscal Cliff Isn’t The End Of The World
Markets

The US Is Entering A New Era Of Fiscal Austerity

[credit provider=”Shutterstock”] In discussing the fiscal cliff issue, the one big takeaway not to forget is that it is all about austerity—-extreme austerity if we go over the cliff and a lesser amount of austerity if we settle it before year-end. More than likely, this is the start of new era […]
The US Is Entering A New Era Of Fiscal Austerity
Markets

The Ugly Truth Behind The New Social Security Data

Social Security (SS) has released its estimates for the December data for benefits payed and taxes received. With this info, I can estimate the 2012 results that will be formally reported in five-months. It was a ho-hummer of a year for SS, it tread water vigorously, and ended up with […]
The Ugly Truth Behind The New Social Security Data
News

CEO Of Massive US defence Firm Scoffs At The ‘Fiscal Cliff’

[credit provider=”U.S. Navy photo by Lt. Christopher Senenko” url=”http://www.navy.mil/view_single.asp?id=5746″] The fiscal what? Cliff? How about the fiscal “speed bump.”The CEO of the fourth largest U.S. defence firm, Raytheon (5th largest in the world), Bill Swanson “is telling investors sequestration would be a ‘speed bump,’ not a ‘guillotine,'” according to Politico.
CEO Of Massive US defence Firm Scoffs At The ‘Fiscal Cliff’
Markets

NOMURA: The Paul Ryan Pick May Be Bad News For Stocks

[credit provider=”Getty”] Nomura economist Lewis Alexander (who is a former Treasury economist under the current President) is out with the first note we’ve seen on the Paul Ryan pick.Alexander’s take? The pick is likely to strengthen support for fiscal consolidation, and pull forward the debate about the Fiscal Cliff, thus […]
NOMURA: The Paul Ryan Pick May Be Bad News For Stocks
Markets

The 13 People Who Are Destroying The Global Economy

[credit provider=”wikimedia commons” url=”http://commons.wikimedia.org/wiki/File:OwensVly1924.jpg”] Let’s be crystal clear: we don’t believe any of these people are bad or are intentionally trying to destroy the world.But if there’s one thing that has become obvious, it’s that policy paralysis is a major contributor to the ongoing global economic malaise.
The 13 People Who Are Destroying The Global Economy
Markets

STIGLITZ: The Fed Obviously Mismanaged The Economy

In an interview with Bloomberg TV, economist Joseph Stiglitz stated that the Fed obviously mismanaged the economy before 2008 and that the outlook for America to return to full employment in the next few years looks very bleak.
STIGLITZ: The Fed Obviously Mismanaged The Economy
Markets

Goolsbee: Europe Badly Misunderstands How A Fiscal Union Should Work

[credit provider=”UpTakeVideo via YouTube” url=”http://www.youtube.com/watch?v=vAqO_xjgK7E”] In December the leaders of the EU agreed to a fiscal compact, which Ireland will vote on tomorrow. It would sanction countries that spend too much or don’t sufficiently cut their debt. Former Obama economic advisor Austan Goolsbee says that’s not the sort of fiscal union […]
Goolsbee: Europe Badly Misunderstands How A Fiscal Union Should Work
Markets

MORGAN STANLEY: Argentina’s YPF Nationalization Is Stealing Attention From Much Bigger Problems

[credit provider=”AP” url=”http://www.apimages.com/OneUp.aspx?st=k&kw=argentina%201989&showact=results&sort=creationdatelower%3Aalphabetical&intv=None&sh=10&kwstyle=and&adte=1300468526&pagez=60&cfasstyle=AND&rids=c9688825fae6da11af9f0014c2589dfb&dbm=PY2000&page=1&xslt=1&mediatype=Photo”] With Argentina seeking to nationalize its largest oil company, Morgan Stanley’s Daniel Volberg sees increased odds of a hard landing.“Policy radicalization” has suddenly become the top risk in the country.
MORGAN STANLEY: Argentina’s YPF Nationalization Is Stealing Attention From Much Bigger Problems
News

Huge NYT Exposé Reveals Why The Fiscal Timebomb Will Explode Next Year

[credit provider=”The New York Times” url=”http://6thfloor.blogs.nytimes.com/2012/03/28/painting-a-cover/”] Nobody wants much to think about it yet, but it’s well understood by everyone in Washington and on Wall Street, that a potentially massive fiscal problem is looming for the economy next year.The issue is divided into three parts:
Huge NYT Exposé Reveals Why The Fiscal Timebomb Will Explode Next Year
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