70 Words

While the economy created 252,000 jobs in December and 2.95 million last year, the most since 1999, and the unemployment rate fell to 5.6%, looks can be deceiving. The steep unemployment rate decline is because the labor force participation rate declined to 62.7%, a 37 year low, thus the combined number of persons employed and…

The Friday File: At age 50, the average man can expect to live an additional 29.25 years, while the average woman can expect 30.5 more years of life. Wealth plays a huge role. Among the poorest 10%, life expectancy beyond 50 averages 24.2 years for men and 27.9 for women. Among the wealthiest 10%, it’s…

Current oil prices will save US households $150 billion over the next year if they hold. But these benefits will come slowly. However, the decline in energy stocks which make up 8% of the S&P 500 and 12% of its dividends, 17% of the high-yield bond market and 12% of the investment-grade bond market is…

With so much global turmoil, the declining yields on US Treasuries isn’t surprising as investors across the globe pour money into to Treasuries given their status as the world’s safest investment. Another reason is that close to $800 billion in European sovereign euro-denominated debt, equal to almost 6% of all euro-denominated sovereign debt, offers investors…

While there are always potential economic problems that could harm our economy in 2015, the biggest is Europe. This is because of the chance, albeit remote, that the continent badly unravels. A combination of a Greek default or (maybe) exit from the euro, continued central bank paralysis and the rise of extremist political parties is…

While personal income tax reform sounds great, lower rates necessitate eliminating or reducing tax breaks. The biggest is the $207 billion exclusion for employer-sponsored healthcare plans. The next four are the $103 billion exclusion for employer-sponsored retirement plans, the $74 billion mortgage interest deduction, the $69 billion from lower taxes on capital gains and the…

The Friday File: Americans bought 257 million albums last year of which a surprising 9.2 million were vinyl. Individual song sales totaled 1.1 billion, while streamed songs totaled 164 billion! Purchases of albums and individual songs fell about 10%, vinyl sales rose 52%, while streaming grew 54%. The top selling album, “1989” by Taylor Swift…

In 2014, the yield curve flattened considerably as long-term interest rates, like the ten–year Treasury bond, fell by about three-quarters-of-one-percentage point while short-term rates were completely unchanged. In 2015, I expect the yield curve to flatten further, but now it will be short-term rates that rise as the Fed pushes them up, while long-term rates…

Helmetless motorcyclists admitted to a hospital following an accident typically run up medical bills of greater than a million dollars, and taxpayers pay well over half the tab. The solution: where helmets are not required, force un-helmeted bikers to carry $1,000,000 in medical-payment insurance coverage. While the insurance might be expensive, that’s the whole point!…