The Mess That Greenspan Made - Part 40

Wednesday Morning Links

MUST READS
World Bank lowers growth forecast – BBC
Economic Confidence in the U.S. Static at -14 – Gallup
Americans finally feel better about economy: Survey – CNBC
Cantor’s Gone, Let the Republican Infighting Begin – Bloomberg
Sunni insurgents close in on Iraq’s biggest oil refinery – Reuters
Gas row: Ukraine ‘won’t fall into Russian gas trap’ – BBC
U.S. pensions ‘cash negative’ by 2016: Analyst – Financial Times
BofA Mortgage Settlement Is Said to Be Deadlocked – NY Times
Goldman Shuns ‘New Neutral’ After Doubting ‘New Normal’ – Bloomberg
Time (and Money) in a Cellphone – Gross, Pimco
What if the caution of the ’super rich’ ebbs? – Reuters
Ali concert to mark 40 years since Foreman fight – AP
The O.J. Simpson trial, 20 years later – Newsday

MARKETS/INVESTING
Global stocks skittish after growth downgrade – AP
Markets Are Less Volatile. Should We Worry? – NY Times
Performance anxiety means higher prices still to come – MarketWatch
$1M crushed to less than $55,000 by 3 stocks – USA Today
Buybacks are the driving force behind the imminent Dow 17,000 – MarketWatch
Treasury 10-Year Note Erase Losses Before $21 Billion of Sale – Bloomberg
Palladium holds near 3-1/2-year high; gold gains on lower shares – Reuters
Gold At A Turning Point After ECB’s Unprecedented Action – CMC Markets – Kitco
What Was The Primary Miners Break-Even Silver Price Q1 2014? – SRSrocco Report
Shrouding China’s gold trade, more imports go under radar – Reuters
China has world’s second largest gold resource – Mineweb

ECONOMY/WORLD/HOUSING/BANKING
Job openings soar to highest since 2007 – USA Today
America’s middle class: Poorer than you think – CNN/Money
The Real Reason That Young People Can’t Find Jobs – The Atlantic
UK unemployment falls to five year low but wage growth slows – Telegraph
China ramps up spending to spur economy, central bank sees stable policy – Reuters
Tensions grow in Hong Kong as China asserts control – MarketWatch
Japan Says Chinese Fighter Jets Fly Near Its Planes Again – Bloomberg
Retired parents taking out ‘inherited mortgages’ for children – Telegraph
Overheated housing market worries British finance executives – Guardian
Calgary’s housing market making a dramatic comeback – The Province
Southern Nevada’s housing market bounces back in May – LV Review Journal
Fed Prepares to Keep Record Balance Sheet for Years to Come – Bloomberg

 

The Housing Market’s Lost Generation

There’s lots of compelling data in this Wall Street Journal story ($) about how millennials are getting off to a difficult start in life, asset accumulation-wise, due to a number of factors, most of which their baby-boomer overlords in government and banking seem to like just fine, yesterday’s student debt relief effort by the Obama Administration notwithstanding.

As it relates to housing, twenty-somethings have been notable no-shows in the recent housing boom for reasons that should be clear in the two graphics below.

Also see this CNBC report on a recent Wells Fargo survey that showed millennials being overwhelmed by debt as never before. It’s not unusual to spend your 20s treading water financially as you cope with finding your place in the world, but today’s younger set certainly seems to have the deck stacked against them.

Just wait til they find out in a couple decades that their baby boomer parents have had to spend their inheritance to make ends meet in their golden years.

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Tuesday Morning Links

MUST READS
Global private wealth rises to $152tn – BBC
ECB creating ‘dangerous’ bubbles: German think tank – CNBC
Stock Futures Drop After Equities Set Records – Bloomberg
5 reasons why the stock market is shining bright – USA Today
3 reasons the Dow doesn’t deserve to be at 17,000 – MarketWatch
Latest sign the tech bubble’s really here: Uber valued at $17 billion – LA Times
How Europe’s amazing bond rally could end in new crisis – MarketWatch
U.S. Senate Majority Leader sells home to make way for NV gold mine – Mineweb
World Needs Record Saudi Oil Supply as OPEC Convenes – Bloomberg
Larry Summers Should Keep His Mouth Shut – Baseline Scenario
Warning: Inflation Is Running Above 2% – Feldstein, WSJ
What If the Fed Has Created a Bubble? – Bloomberg
The Bubble is Back – Dollar Collapse

MARKETS/INVESTING
World stocks mostly rise on global growth optimism – AP
Which stocks are best this time of year? – USA Today
Stocks versus bonds—One market could get pounded – CNBC
The Two Most Powerful Forces Pushing the Stock Market Higher – FSO
China Commodity Financing Seen Declining by Goldman Sachs – Bloomberg
Treasury Three-Year Yield Reaches One-Month High Before Auction – Bloomberg
Gold Firmer on Short Covering, Chart Consolidation – Kitco
Indian, Chinese Central Banks to absorb 90% of Gold mine output – SMM
Stocks And Precious Metals In Extreme Territory – GoldSilverWorlds
Deutsche Bank opens 1500 tons Gold vault in London – BullionStreet
Gold buyers make the most of lower prices – Times of India

ECONOMY/WORLD/HOUSING/BANKING
Where have all the missing American workers gone? – AP
Depression Rates Higher for Long-Term Unemployed – Gallup
China inflation hits 4-month high in May – CNA
China IPO market resumes after four-month hiatus – Reuters
UK economic output to be revised up after ONS updates – BBC
Europe is jealous as Britain resurrects the Laffer Curve – Telegraph
Merkel Warns on Threats as Cameron Steps Up EU Exit Talk – Bloomberg
China’s real-estate market sees land sales plunge – MarketWatch
Lost Generation Casts Shadow Over Housing Market – WSJ
Fannie Mae: Economic worries dragging down housing market – LA Times
Rogoff: Increasing Inflation Target Is a Bad Idea – Money News
Rosengren urges Fed to specify portfolio run-off – Reuters

 

New Hope for the Economics Profession

I’ve not yet perused House of Debt: How They (and You) Caused the Great Recession, and How We Can Prevent It from Happening Again, but it’s just been added to my summer reading list as there are apparently two more U.S. economists thinking a bit more outside of the box, said box still keeping most dismal scientists baffled about how we arrived at our current slow growth, widening inequality predicament.

Here are authors Atif Mian and Amir Sufi in an interview with the Financial Times.

Of course, Mian and Sufi have a blog by the same name and, while Larry Summers thinks their analysis is pretty good, he has few kind words for their policy prescriptions.

This is real progress, I think…

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