Volcker Cautions Federal Reserve May ‘Fall Short’ – Bloomberg 05-29-13

Salient to Investors: Paul Volcker said: The Fed will fall short by being asked to meet price stability and full employment – a mandate both operationally confusing and ultimately illusory. Asking too much is accommodating misguided fiscal policies, dealing with structural imbalances, to square continuously the hypothetical circles of stability, growth

READ MORE...

Obamacare Competition Has Roots in Economist’s Passion – Bloomberg 05-29-13

Salient to Investors: Leemore Dafny’s examination of health-insurance markets is said to have helped mold the state and federal exchanges that are central to Obamacare’s 2010 health-care law. Her 2010 paper in the American Economic Review found that a lack of competition in insurance markets drives up premiums, that insurers charge more

READ MORE...

Rosengren Says Significant Fed Accommodation Still Needed – Bloomberg 05-29-13

Salient to Investors: FRB of Boston President Eric Rosengren said: Significant accommodation remains appropriate and warned that inflation could impair growth should it decline further. It may be undesirable to abruptly stop purchases: better a modest reduction in the pace of asset purchases when we see a gradual improvement in labor markets and the

READ MORE...

Latin America Disappoints After Squandering Commodity Boom – Bloomberg 05-29-13

Salient to Investors: Latin America is disappointing investors, economists and businesses with slower-than-forecast growth as waning commodity prices and strong currencies hit nations that failed to diversify and become more competitive. Economists cut Brazil’s 2013 outlook for the second time in 7 days, forecasting the worst 3-year period in a decade.

READ MORE...

OECD Forecasts Global Economy to Recover Next Year: Economy – Bloomberg 05-29-13

Salient to Investors: Pier Carlo Padoan at OECD said: Global economic growth will accelerate at multiple speeds in 2014 with both the US and Japan continuing to outpace the euro area. Rising unemployment is the most pressing challenge and euro countries with trade surpluses such as Germany need to allow wages to rise Reform fatigue is mounting

READ MORE...