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Global Economic Intersection

The Road To Default

posted on 17 November 2019 by John Mauldin, Thoughts from the Frontline Nothing is forever, not even debt. Every borrower eventually either repays what they owe, or defaults. Lenders may or may not have remedies. But one way or another, the debt goes away.Please share this article - Go to very top of page, right hand side, for social media buttons.One of Western civilization’s largest problems is we’ve convinced ourselves debt can be permanent. We don’t use that specific word, of...

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Largest Decline In Consumer Comfort Index Since 2008

posted on 16 November 2019 by UPFINA Weekend Reading from UPFINAThe Q3 NY Fed Household Debt & Credit report was released this week, but we will start this discussion with data updated as of Q2. U.S. consumers are in great shape. This cycle has been a huge deleveraging event. Nominal household debt even fell in the first few years of this expansion as it bottomed in Q2 2013.Please share this article - Go to very top of page, right hand side, for social media buttons.If this...

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Is Peer Review Forcing Academics To Become Prostitutes?

posted on 13 November 2019 by Philip Pilkington Article of the Week from Fixing the EconomistsRecently I came across a fantastic blog entitled Rejection Letters of the Philosophers. It is a satirical blog in which famous philosophers are imagined to have submitted their manuscripts to their peers via the contemporary academic peer-review system. The humour lies in writing the rejection letter from a completely clueless and bigoted referee who merely want to defend already-existing...

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Major League Baseball Finances: What The Numbers Tell Us

posted on 15 November 2019 Written by Elliott Morss, Morss Global Finance IntroductionNow that the World Series is over, the most interesting part of the baseball season starts: The Hot Stove League. To provide some background for this, key financial statistics of Major League Baseball (MLB) are set forth below.Please share this article - Go to very top of page, right hand side, for social media buttons.IncomeConsider first the two major sources of income: TV contracts and ticket...

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Restoring The Korean Economic Miracle

posted on 10 November 2019 by Ellen Brown, Web of Debt This paper was written for the Economics of Happiness Conference co-sponsored by Local Futures, held in Jeonju, Korea, on October 16-17, where the author was the keynote speaker.Please share this article - Go to very top of page, right hand side, for social media buttons.Satisfaction in the workplace is a major component of the “happiness" index; but it is a satisfaction that young people joining the workforce today are not...

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Slowing But Not Stopping Yet

posted on 09 November 2019 by John Mauldin, Thoughts from the Frontline If you are a computer (other than the newest experimental quantum ones), your world is entirely binary. Everything is some combination of zeroes and ones. The machines can do marvelous things with those two digits but they have limits.Please share this article - Go to very top of page, right hand side, for social media buttons.We humans don’t have to think in either/or terms, yet we often do. I see it in the...

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The CAPM And The Non-Ergodic Axiom

posted on 07 November 2019 by Philip Pilkington Article of the Week from Fixing the Economists While doing my dissertation on constructing a new theory of asset-pricing I became exposed to some contemporary theories. To be frank, I didn’t really know how to integrate them because they seemed to be ether (a) intuitively incorrect or (b) useless for what I consider to be the real underlying dynamics of asset-pricing, or some combination of both. The CAPM was a combination of both.Please...

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Was This A Positive October Jobs Report?

posted on 06 November 2019 by UPFINA Article of the Week from UPFINABoth the Markit manufacturing PMI and the ISM manufacturing PMI had weak October readings, but they improved. When these indexes go from weak to okay, that’s a great signal for stocks. That’s one of the reasons why the industrials sector rallied 2.18% (on Friday) and is very close to its January 2018 record high.Please share this article - Go to very top of page, right hand side, for social media buttons. The graphic...

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Negative Interest Rate Policy And The Bank Lending Channel

posted on 04 November 2019 from Voxeu.org -- this post authored by Gauti Eggertsson and Lawrence H. SummersSeveral central banks implemented negative policy rates in response to the financial crisis, but there is little consensus on the overall effect of this policy. This column examines the transmission of policy rates to bank lending rates, focusing on the case of Sweden. While the first two cuts in negative territory by the Riksbank appear to have been transmitted to lending rates,...

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Why Japan Lost Its Comparative Advantage In Producing Electronic Parts And Components

posted on 04 November 2019 from Voxeu.org -- this post authored by Willem ThorbeckeJapanese exports in electronic parts and components dramatically fell in value after the Global Crisis and have not recovered until today. This column investigates why Japan lost this comparative advantage. It argues that capital inflows seeking safe havens during the crisis led to a sharp appreciation of the yen and caused yen export prices to tumble relative to production costs. Plummeting profits...

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