The Mess That Greenspan Made - Part 30

Thursday Morning Links

Microsoft set to axe 18,000 jobs – BBC
Two Camps in the Fed’s Rate Debate – WSJ
Fed hawks: Start draining the punch bowl! – CNN/Money
Fed kicks off global dollar squeeze as Yellen turns hawkish – Telegraph
Yellen Balks at Proposal to Tie Rates to Formula – WSJ
Should Janet Yellen Be Giving Us Stock Picks? – NY Times
Bubble Paranoia Setting in as S&P 500 Surge Stirs Angst – Bloomberg
India to head the BRICS Bank for first five years – Economic Times
The Buzz in Berlin: Is Merkel Thinking of Stepping Down? – Spiegel
Record 57 Million Americans Living in Multi-Generational Households – WSJ
What Happens When Detroit Shuts Off the Water of 100,000 People – Atlantic
U.S. gold dealer launches first digital currency backed by bullion – Reuters
Downtown L.A. is now driest since rain records started in 1877 – LA Times

Global stocks down ahead of US data, earnings – AP
Here’s why stocks could keep hitting new highs – CNBC
China Rallying for All Wrong Reasons to Top-Rated Analyst – Bloomberg
Russian stocks drop as Putin hints at sanctions revenge – MarketWatch
Treasuries Rise on Safety Demand as U.S. Adds Russian Sanctions – Bloomberg
Gold edges above $1,300/oz as price drop draws buyers – Reuters
How Eastern Gold Demand Is Transforming The Gold Market – GoldSilverWorlds
Bulls might take heart from latest gold smashdown failure – Mineweb
India Imported 713 MT Of Silver In April, 1921 MT YTD – BullionStar
Gold Should Rise if Stocks Fall — But Here’s When It Didn’t – Barron’s
Scorching June for gold imports in India – Mineweb

The Rise of the Non-Working Rich – Robert Reich
Why Amity Shlaes is dead wrong about inflation – AEIdeas
The Post-1979 Shortfall in American Economic Growth – WCGC
Euro zone June inflation unchanged at low levels as expected – Reuters
Yes, China is Beginning to “Rebalance,” But There’s a Long Way to Go – WSJ
Services sector offsets gloom in manufacturing – China Daily
Scotland’s economy stands above pre-recession peak – xinhuanet
Eight biggest mistakes first-time homebuyers make – CNBC
States with the biggest house price discounts – MarketWatch
Bay Area housing market keeps surging, but lending remains tight – LA Times
PBoC follows other central banks in suppressing volatility – Sober Look


Warren, Yellen, and Too Big to Fail

It appears they left the best for last yesterday as Sen. Elizabeth Warren (D-MA) closed out day one of Fed Chair Janet Yellen’s semi-annual monetary policy report to Congress with this wholly unsatisfying exchange about too-big-to-fail banks (hat tip Not Quant).

Skip to the 1:34:45 mark of the entire CSPAN video here to find another interesting exchange, this one with Sen. Tom Coburn (R-OK) where Yellen is asked whether it might not be a better idea to just not create so many asset bubbles to begin with.

Well, he didn’t exactly ask it like that…

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Wednesday Morning Links

China’s economic growth picks up – BBC
BRICS establish $100B bank, currency pool to cut out West – RT News
Yellen: Fed Will Continue to Prop Up Economy – NY Times
Janet Yellen on the Everything Bubble – The Upshot
Fed tries new role as line judge for markets – WSJ
‘Artificial’ Interest Rates Are the Real Deal – Bloomberg
A word of caution about a tech bubble from Janet Yellen – Salon
What Yellen said on junk bonds isn’t what the market heard – CNBC
Yellen, Fed Still Worried About Slowdown in Housing Recovery – WSJ
Mark Carney blasts BIS for calling for rate rises in a “vacuum” – Telegraph
CBO Warns Unchecked Entitlement Spending Is ‘Unsustainable’ – Fiscal Times
Fear running short of cash in retirement? What to do – USA Today
The Immorality Of Paper Money – Personal Liberty Digest

Stock Futures Rise as Apple, IBM Rally on Deal – Bloomberg
Midterm elections aren’t good for stocks – CNN/Money
Hoisington Investment Management – Review and Outlook – Mauldin Economics
High valuations like today’s aren’t justified by low interest rates – MarketWatch
Global equity melt-up in full swing even if investors hate themselves – Telegraph
Treasury Volatility Drops on Yellen Low-Rates Message – Bloomberg
Gold below $1,300 on stronger dollar, interest rate fears – Reuters
ICBC: A New Global Currency Setup Is Being Conceived – BullionStar
An update on Gold charts — has the bull been injured? – Peter Brandt
Surging gold imports widen India’s trade deficit – Mineweb
Monsoon – Better Late Than Never For Indian Gold Demand – Perth Mint

Hershey raises prices by 8% – CNN/Money
Austrians Can Help You Predict the Economy – Cyniconomics
China growth picks up as stimulus kicks in, more support may be needed – Reuters
China Banks Said to Have $3.2 Billion Exposure in Qingdao Probe – Bloomberg
China knows it has a problem, but it just can’t kick the investment habit – Quartz
Employment hits new high but wage growth weakens – Telegraph
Mortgage volume tanks; Jamie Dimon bashes the FHA – CNBC
JP Morgan; If Foreclosures Are More Difficult We’ll Lend Less – Forbes
The Homeownership Rate for Millennials Has Hit Bottom – WSJ
Fed’s George says strengthening economy warrants quick rate rise – Reuters
Yellen Tells Whoppers to the New Yorker – Naked Capitalism
Two Wrongs Don’t Make a Right – E-phipany


Retail Sales Post Modest Gain

The Commerce Department reported(.pdf) that retail sales rose less than expected last month, up only 0.2 percent in June following an upwardly revised gain of 0.5 percent in May.

The consensus estimate for June was a gain of 0.6 percent and the miss was largely due to a surprise decline of 0.3 percent in auto sales last month. Retail sales less autos rose 0.4 percent and when both autos and gasoline are excluded, sales also rose 0.4 percent.

Sales increased for nine of the thirteen major categories, paced by a gain of 1.1 percent at general merchandise stores (e.g., department stores) and an increase of 0.9 percent at nonstore retailers (e.g., internet sales) and health & personal care stores.

Declining categories were led by home improvement stores where sales fell 1.0 percent and food service where receipts were 0.3 percent lower.


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