In 2015 about 500,000 households that lost their homes to foreclosure or a short sale back in 2007 will, if their finances are sufficiently solid, be able to again qualify for a conforming home loan. In all, over seven million…
While the efficient markets hypothesis says that markets instantly and continually price into shares all known information, making it impossible to consistently beat the market using any rational strategy, it doesn’t suggest that markets are right. Last Wednesday markets plunged…
The Friday File: In a recently released and terribly designed study by brainless economists commissioned by Facebook, the social media site finds that in 2014 it created $227 billion in world economic impact and 4.5 million jobs! Are you kidding?…
The Fed paid banks $7 billion in interest on $3 trillion in excess reserves parked at the Fed. The primary way the Fed will raise short-term rates is by increasing the rate they pay banks on those reserves. Thus in…
While the unemployment rate has fallen dramatically from 10% in 10/09 to 5.6% today, the number of persons employed is barely 2 million higher than it was before the Great Recession began in January 2008. It’s because the labor force…
While oil prices here are down 56% since 7/1/14, the picture is vastly different elsewhere because oil is quoted in US dollars. Because the Canadian dollar has fallen vs. the US dollar, when converted into Canadian currency the decline has…
With Syriza winning Greek elections yesterday, expect increased market volatility. Syriza wants to end austerity and renegotiate its €240 billion bailout, which Germany firmly opposes. To scare Greece, Merkel suggests that Greece leaving the euro would be OK, but it’s…
The Friday File: The wealthiest 80 people on the planet have a combined worth of $1.9 trillion, the same as the total wealth of the bottom half of the world’s population; 3.5 billion people. The wealthiest 1% of the population,…
Over the last year jet fuel prices fell 23.5% but fares only declined 4.7%! It’s because fuel is 26% of the cost of a ticket, and airlines hedge their fuel needs to guarantee price stability which prevents them from realizing…
Real median household income in the USA in 2013 was $51,939, up a microscopic $181 from 2012. Moreover, it’s back to the level first achieved in 1989! As a result the expected average household savings of $750 on gasoline in…