The financial crisis wiped out 18 years of gains for the median U.S. household net worth, across almost every demographic group, which may hurt retirement prospects for middle-income families. The proportion of families with retirement accounts decreased 2.6 points to 50.4 percent during the period. Read the full article at
READ MORE... →German insistence that EU support be directly to Spain’s government and not its banks had two fatal consequences. Adding to Spain’s public debt and possible subordinating existing bondholders. German taxpayers didn’t want the euro in the first place, correctly fearing it would become a transfer system for other countries’ profligacy. The choice is no longer
READ MORE... →Salient to Investors: Bank of America survey said optimism among global asset allocators has fallen back to the lows of autumn 2011:, equity holdings have been reduced to underweight for the first time in seven months, cash raised to the highest level since 2008 and third-highest level on record. Predictions: RBC Capital
READ MORE... →Decline of shadow banking together with government moves to rein in a national property bubble are crippling small business. Seven out of 10 businesses in the Wenzhou rely on exports, in labor-intensive industries, leaving it vulnerable to Europe’s crisis. Property in Wenzhou remains out of reach for thousands even after home prices slumped 12.3
READ MORE... →Goldman Sachs expects the economy to continue to struggle for the next few months as business owners wait for the national election before making investments. Read the full article at http://www.bloomberg.com/news/2012-06-12/blankfein-says-u-s-economy-in-tough-position-next-few-months.html
READ MORE... →Salient to Investors: IMF said the yen is moderately overvalued medium-term because of safe-haven inflows, and the Japanese central bank should consider further monetary stimulus. Intensification of the flight to safety in financial markets could lead to exchange-rate volatility, further strengthen the yen and depress equities and business and consumer confidence. Read the full
READ MORE... →Berkshire Hathaway’s third plane purchase in less than two years. JPMorgan Chase said larger business jets is the industry’s strongest segment in recent years, buoyed by high net-worth individuals in emerging markets, despite concern that demand may wane for private jets in slowing global economy. Read the full article at http://www.bloomberg.com/news/2012-06-11/buffett-adds-cessna-bombardier-planes-in-9-6-billion-deal-1-.html
READ MORE... →NAR said foreign buyers bought $82.5 billion of U.S. homes in the 12 months through March 2012, or 4.8 percent of the $928.2 billion market, versus $66.4 billion a year earlier. Arizona, California, Florida and Texas were 51 percent of the foreign purchases, Canadians 24 percent, Chinese 11 percent, Mexicans 8 percent, India and the U.K. each 6 percent of purchases. Foreign buyers paid
READ MORE... →Salient to Investors: Moody’s John Lonski says G-7 bond rates indicate the markets don’t expect economic growth to exceed 3 percent. Blackrock’s Jeffrey Rosenberg says the greed that produces bubbles is absent. Pimco’s Bill Gross says global bond markets are turning ‘Japanese’. UBS’ George Magnus says we are replicating the Japanese experience. Bianco Research’s James
READ MORE... →Salient to Investors: Bloomberg reports 64 percent of 108 S&P 500 companies had analyst ratings lowered in the past week. Investment Company Institute say American equity mutual funds had $7.2 billion of outflows during the week ended May 23 versus $178 billion of outflows in the previous 12 months. Predictions: Blackstone Group’s Byron Wien says it’s safe to
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