The Mess That Greenspan Made - Part 19

Thursday Morning Links

MUST READS
Germanwings pilot ‘locked out’ of cockpit – euronews
Oil prices surge after Saudi air strikes in Yemen – Reuters
Why Bombing This Tiny Oil Producer Is Roiling the Energy Market – Bloomberg
Saudi forces strike rebels in Yemen as Iran warns of ‘dangerous step’ – Fox News
US risks epic blunder by treating China as an economic enemy – Telegraph
China’s yuan may join elite money club this year – MarketWatch
Moody’s downgrades Ukraine heralding imminent default – RT News
Ukraine’s New Problem: An Oligarch with a Private Army – Fiscal Times
The Central Banker Who Saved the Russian Economy From the Abyss – Bloomberg
Report: Body Cameras Effective Only When Cops Can’t Turn Them Off – Vice News
Paid to sleep: NY cracks down on napping health workers – AP
Lessons From the 1937-38 Recession For the Fed – RCM
US stock market is just way too riggin’ easy – NY Post

MARKETS/INVESTING
World stocks down on weak data, Wall Street dive – AP
Why some aren’t buying the tech bubble talk – MarketWatch
The Arguments for and Against a Tech Bubble – Barron’s
Why the Dow is wildly careening up and down – USA Today
Majority of U.S. Investors Anticipate Interest Rate Hike – Gallup
Stocks are overpriced, overleveraged, headed for trouble – MarketWatch
Gold hits 3-1/2 week high as Yemen air strikes rattle markets – Reuters
If China Joins The New Gold Fix, There’ll Be Less Manipulation – BullionStar
BofAML’s Curry: Gold Rally Has Just Begun – GoldSilver.com
Deflation may be good for gold – HSBC – Mineweb

ECONOMY/WORLD/HOUSING/BANKING
Wells Fargo to lay off 1,000 workers – USA Today
Atlanta Fed gauge shows U.S. GDP nearly flat in first quarter – Reuters
The debate within the Fed: Jobs matter, not the dollar – Economist
UK retail sales rise helped by housing market recovery – BBC
China’s housing market is now recovering – China Daily
Bank of Canada says foreign buyers complicate housing market – Reuters
U.S. Home Prices Are Surging 13 Times Faster Than Wages – Bloomberg
The Fed Still Needs to Figure Out How to Raise Rates – Bloomberg
Bullard: now may be good time to normalize U.S. monetary policy – Reuters

 

Like a Ball and Chain

Someday, these post-financial crisis years will be looked back upon as being one of the most damaging periods to the American psyche with soaring wealth/income inequality topping the list of ills due, in large part, to monetary/fiscal policies enacted by TPTB.

Not far down said list is the burgeoning student loan problem that is transforming an entire generation and this CNN/Money story provides a view of things from recent graduates.

Interestingly, I have some first hand experience with this issue recently where a surprising number of ski instructors I’ve worked with over the winter are 20-something recent graduates who, you’d think, should be doing something different at this time.

A common refrain is that the four-year degree is the new high-school diploma and they all dread the student loan bills coming due.

Wednesday Morning Links

MUST READS
Europe sleep walks towards the abyss – Telegraph
The U.S. Inflation Cycle May Have Just Turned – WSJ
Asuumptions Behind Fed 2% Inflation Target Were Erroneous – Equitable Growth
China’s Influence Set to Climb as U.S. Thwarted on New Bank – Bloomberg
House Passes Resolution to Arm Ukraine, Russia Says It’s “A Direct Call For War” – Town Hall
Russia Politician Urges Obama: ‘Don’t Be Like George Bush, Forget Ukraine’ – Moscow Times
Strap ‘em If You Got ‘em: Texas Set to Allow Guns on Campuses and Open Carry – Vice News
There are two Americas for kids now, thanks to income inequality – Quartz
College Students: Stop Acting Like You’re Made of Sugar Candy – reason.com
As Silence Falls on Chicago Trading Pits, a Working-Class Portal Also Closes – NY Times
Top U.S. CEOs reaped billions from stock gains in recent years – Reuters
Fighting the “War on Terror ” by Banning Cash – Mises

MARKETS/INVESTING
World stocks drift as Fed, China weakness weigh – AP
Are Biotechs the New Dot-coms? – Irrelevant Investor
What Happens When Vanguard Owns Everything? – Morningstar
American cash is flooding into European stocks – CNN/Money
Oil ETF Holdings Soar; Investors Await a Bottom for Crude – Barron’s
Wall Street Stars Join Latest Silicon Valley Gold Rush – NY Times
Falling Knife Slashes Shale Dealmaking, Buyers Await Bottom – Bloomberg
This is nothing like the 2000 dot-com bubble – MarketWatch
Gold near 2-1/2 week high on U.S. rate expectations – Reuters
SocGen’s ultra bearish gold and silver outlook – Mineweb
Indian Gold Import Exploding In March – BullionStar

ECONOMY/WORLD/HOUSING/BANKING
Is Jobless Growth Inevitable? – Project Syndicate
The ACA and labor force participation of older workers – MarketWatch
“All the Eurozone Is Capable of Is ‘Stealing’ Growth from Others” – Wolf Street
Yemen’s Houthis Extend Advance in South After Saudi Warning – Bloomberg
Yemen president flees Aden home as Shiite rebels near, official says – LA Times
Canada’s housing market hits Wile E. Coyote moment: Yale lecturer – Global News
What to do when Canada’s housing boom turns to bust – Financial Post
Fed’s Evans: Central Bank Shouldn’t Raise Rates This Year – WSJ
Bernanke Was Right: Interest Rates Aren’t Going Anywhere – Fiscal Times

 

Here’s the chart from about half-way through a highly entertaining Ted talk (due in part to a Tennessee twang) given by hedge fund billionaire Paul Tudor Jones depicting where the U.S. stands on a measure of inequality via-a-vis social ills (go here for the entire clip).

It’s not clear how that left scale is calculated, by my guess is that the American obesity epidemic is what puts this nation off the chart.

Of course, the headlines that were generated from this talk had to do with how situations like those depicted in the chart are resolved and I’ve obliged in the title above.

© 2010-2011 The Mess That Greenspan Made