The Mess That Greenspan Made - Part 32

Monday Morning Links

China cuts reserve rates for fifth time in a year – Guardian
Economists React: China’s ‘Surprise’ Bank Reserve Cut – WSJ
China plans to cut 1.8 million coal and steel jobs – CNN/Money
Shares fall on G20 disappointment, Fed hike worries – Reuters
Is The PBOC Already Backtracking On The G20 Summit? – Forbes
An Open Letter to the Republican Establishment – Robert Reich
The Clintons and Wall Street: 24 Years of Enriching Each Other – CounterPunch
Some Americans Considering Moving to an Island in Canada If Trump Wins – Vice News
In a blow to Cruz, Sen. Jeff Sessions of Alabama endorses Trump – Washington Post
Why Won’t Donald Trump Repudiate the Ku Klux Klan? – Atlantic
Why Chris Christie endorsed Donald Trump – The Week
Rubio’s suburban play for second place – Politico

U.S. futures lower, global markets sink – USA Today
The World’s Most Popular Stock Picks Are Sinking – Bloomberg
S&P500 closes in on bearish signal it hasn’t displayed since 2008 – MarketWatch
Fed Dots Don’t Connect for Bond Traders Scorning Rate-Hike Path – Bloomberg
Bullish Oil Bets Rise as Hedge Funds See Crude Supply Tightening – Bloomberg
Gold up 1 pct, set for best month in four years – Reuters
Money Keeps Flooding Into Gold Funds – Barron’s
Gold Becomes the Biggest Winner of 2016 – Bloomberg
Gold’s price rally has diehard fans excited – but for how long? – Guardian
Why buying gold now could be a lot like buying stocks in 2009 – MarketWatch

Could Trumponomics actually work? – The Week
Energy price slump sends eurozone into deflation – BBC
New Year hangover: Strains show in China’s factory heartland – Reuters
Brexit Will Call Everything Into Question, Says Belgian Prime Minister – WSJ
It’s good to be German: The world’s most powerful passports – Quartz
Saudi Man Gets 10 Years in Prison and 2,000 Lashes for Atheist Tweets – Vice News
Home Prices Press Forward, Despite State of Financial Markets – The M Report
Fed Doves Still Have The Upper Hand For March – Fed Watch
The Fed could be back in play in 2016 – Sober Look
Forward guidance – Econbrowser



Everything you ever wanted to know about the Oscar statue (and, probably, much more, for example, the impact of metal shortages during WWII) is compiled in yet another fascinating offering over at The Visual Capitalist (click on the link or the image below for the real deal).

Also see: Inside the $232,000 Oscar “gift bag” that requires multiple suitcases to deliver

Friday Morning Links

Halliburton cuts another 5,000 jobs – USA Today
Bond Vigilantes Push $258B of Oil Debt Past Junk – Bloomberg
As China’s Economic Picture Turns Uglier, Beijing Applies Airbrush – NY Times
Chinese central bank chief hints at more stimulus for slowing economy – Guardian
German finmin: expansive policies may have laid foundation of next crisis – Reuters
Germany Opposes Any G-20 Fiscal Stimulus; Focuses on Reform – Bloomberg
Apple to FBI: You Can’t Force Us to Hack the San Bernardino iPhone – Wired
Pot Tourists in Colorado Are Getting Too High and Ending Up in the ER – Vice News
Here Is the Libertarian Case for Bernie Sanders, in One Chart –
In Republican Debate, a Feisty Marco Rubio Lays Into Donald Trump – NY Times
3 winners and 2 losers in the CNN Republican debate – Vox
CNN struggles to contain debate fireworks – Politico
Trump’s Terrible Night in Houston – Atlantic

Stocks: 6 things to know before the open – CNN/Money
Why Stock Market Declines are Good – Pragmatic Capitalism
Trade of Decade or Value Trap? Emerging Markets Debate Heats Up – Bloomberg
Historical pattern says the risk of a 2016 bear market is zero – MarketWatch
Why Tom DeMark is predicting an ugly fall for the S&P 500 in March – MarketWatch
Gold price edges lower, set for weekly gain on fund inflows – Reuters – Secular Investor
Gold price: Great sucking sound now coming from the West –
Deliverable Silver Stocks At The COMEX Reach Historic Low – SRSrocco Report

Don’t Panic Over Falling Inflation Expectations – WSJ
The US Election and the Global Economy – Project Syndicate
Many Americans are rising out of the middle class, but are they better off? – CNN/Money
Six takeaways from the Indian government’s own economic report card – Quartz
EU referendum jitters could hinder UK housing market, says Hometrack – Guardian
This Will Crush the Insane San Francisco & Silicon Valley Housing Bubble – Wolf Street
Why The U.S. Housing Market Will Remain Alive And Kicking in 2016 – Forbes
How the Fed’s Cold War With Congress Could Harm the U.S. Economy – Bloomberg
There’s much talk of helicopter drops. Please let’s not go there – Telegraph
From the Vault: The Path of Interest Rates – NY Fed


Millennials on Debt: “Me No Likey”

A new report from the New York Fed shows a disturbing trend (if you’re a bank, that is) about consumer credit as the borrow-and-spend baby-boomer generation heads off into the sunset with a chastened millennial generation not able/willing to take up the slack.

Here’s the key take-away:

We find that aggregate debt balances held by younger borrowers have declined modestly from 2003 to 2015, with a debt portfolio reallocation away from credit card, auto, and mortgage debt, toward student debt. Debt held by borrowers between the ages of 50 and 80, however, increased by roughly 60 percent over the same time period.

It appears that getting saddled with monstrous student loan debt might be good for tenured professors and college administrators, but bad for an economy that is based largely on buying things you don’t need with money you don’t have.

Thursday Morning Links

IMF warns global economy “vulnerable” – BBC
U.S.-China Showdown Keeps Inching Closer – Time
China Says It Has Solutions to Its Economic Problems – NY Times
China stocks plunge 6.4% on market liquidity worries – MarketWatch
Biggest Wave Yet of U.S. Oil Defaults Looms as Bust Intensifies – Bloomberg
North Dakota’s Largest Oil Producer Suspends All Fracking – Zero Hedge
OECD’s William White: In Terms of Debt, the Situation Is Way Worse than 2007 – FSO
Treasury Yield Cure (10Y-2Y) Hits New Post 2007 Low – Confounded Interest
As Roads Crumble, Infrastructure Spending Hits a 30-Year Low – Fiscal Times
Chomsky: Trump Rising in Polls for Same Reasons Germany Embraced Hitler – Anti-Media
Nearly 20 percent of Trump’s supporters disapprove of Lincoln freeing the slaves – Vox
Trump is Redefining the Republican Party – The Atlantic
Mega-donors shy away from fight with Trump – Politico

Stocks: 5 things to know before the open – CNN/Money
LaVorgna: Wall Street hopes way too high – CNBC
Fed deserves some blame for market selloff: Bullard – MarketWatch
Why Wall Street Bank Stocks Tank When Oil Prices Dive – Wall Street On Parade
Why you can expect another global stock market meltdown – MarketWatch
Gold, Treasury Bond ETFs Dominate 2016 Flows – Barron’s
Gold rises on fund purchases, flat dollar – Reuters
Gold price: ETF buying surges to 6-year high –
Dutch Central Bank Considers Relocating Gold Vault – Bullion Star

Services Starting To Buckle – Alhambra Partners
Two more signs a recession could be coming – CNBC
Why boomers are loading up on debt and millennials aren’t – MarketWatch
Pressure on ECB Mounts as Euro-Area Inflation Revised Lower – Bloomberg
Australia Takes Steps to Counter China’s Island Building – WSJ
Australia’s Housing Bubble: In the Grip of Insanity – Acting Man
There’s Reason to Be Excited About the U.S. Housing Market – Bloomberg
All eyes on economy as Fed rate decision looms – USA Today
Where Negative Interest Rates Will Lead Us – Mises
Lacker, Kaplan, Fischer – Fed Watch

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