Salient to Investors: The New York Fed says investors are beginning to price in a higher risk of default on senior bonds issued by large institutions. Since the mid-1990s, banks have grown too big due primarily to non-deposit liabilities, not retail deposits. The five biggest US banks control more than half of all US banking
READ MORE... →Salient to Investors: Retail accounts for almost half of the 20 biggest fortunes in the world. Read the full article at http://www.bloomberg.com/news/2012-10-18/hidden-european-fashion-billionaires-undressed-on-china.html
READ MORE... →Salient to Investors: Paul Farrell writes: The fashion industry is betting megabucks on the future of America’s economy and stock market. At the peak of the 1990s mania tech magazines were also bloated with hundreds of pages of ads. Ad pages signal economic health. Barnes & Noble’s racks are filled with
READ MORE... →Salient to Investors: Homeowners, cities and companies are cutting borrowing, undermining the downgrading of the nation’s credit rating. Total indebtedness – including federal and state governments and consumers – is at 3.29 times GDP, the least since 2006 versus a peak of 3.59 four years ago. Private-sector borrowing is down by $4 trillion to
READ MORE... →Salient to Investors: what do i need to get a cash advance Nat Worden says the shine has long been removed from the once-stellar reputations of corporate captains from the 1980s and 1990s, such as Jack Welch. Worden says exorbitant compensation packages for CEOs is not necessary to preserve talent,
READ MORE... →Salient to Investors: Lawrence Mishel at the Economic Policy Institute says: The jobs report shows nice momentum, though increase in payrolls is not fast enough to get a rapid decline in unemployment. The jobs data is not manipulated – the data is based on surveys of tens of thousands of employers and households every month.
READ MORE... →Salient to Investors: The jobs number is tremendously volatile and no one takes it at face value – especially so when the economy is making a turn or regular seasonal patterns start to change. Historically, employment numbers for workers between 20 and 24 years old drop sharply in September – by an
READ MORE... →Salient to Investors: Peter Hooper at Deutsche Bank said it’s clear the stock market is the most important transmission mechanism of monetary policy – the stock market will have to carry the load. Hooper says the Fed will stick with the bond-buying strategy through next year, and end up buying $800 billion of Treasuries
READ MORE... →Salient to Investors: The Census Bureau Gini Index shows income inequality reached a new high in 2011. Quarterly corporate profits have almost doubled since the end of 2008, while workers’ inflation- adjusted average hourly earnings have declined. Anne Mathias at Guggenheim Securities said said fifty years ago it was how the other half lived,
READ MORE... →Salient to Investors: Daniel Altman at NYU and BigThink says the biggest threat facing the global economy is short-term thinking, which has swept over the world in the past few decades. One cause is we can’t plan for the long-term as easily as we used to because of the growing complexity of
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