Thursday, February 6, 2014

Weekend Reading List --30 links from the recent past

Best links of the last two months?

Today's quote: “America likes to think of itself as a land of opportunity.” (But the) “numbers show that the American dream is a myth … the gap’s widening ... the clear trend is one of concentration of income and wealth at the top, the hollowing out of the middle, and increasing poverty at the bottom.” Joseph Stiglitz

Today's quote 2:   "The mainstream will always choose the explanation that attributes problems to an unpredictable and unique “shock” rather than explanations that see problems as emerging organically from the fundamental nature of capitalist finance." Dan Kervick, comments, naked capitalism

Today's quote 3: Today's Quote:   "You know, a lot of people say, this is just helping rich people. But it’s not true. Our policy is aimed at holding down long-term interest rates, which supports the recovery by encouraging spending. And part of it comes through higher house and stock prices, which causes people with homes and stocks to spend more, which causes jobs to be created throughout the economy and income to go up throughout the economy.” Janet Yellen, the newly appointed head of the Federal Reserve defending its quantitative easing program

1---Americans worse off under Obama, HP

2---The Most Depressing Chart You Will See Today, Mark Gongloff

3--Americans Say Dream Fading as Income Gap Hurts Chances , Bloomberg

4--Corporations Hoard Cash While Americans Go Without A Job, economic populist

5--Eight Million Jobs Are Still Missing In America , mark gongloff

6---How the College Bubble Will Pop, WSJ

7---Profits are high because wages are low, Reuters

8------"Flying Blind": Banks Could Still Blow Up The World, mark gongloff

8---America in Denial,  MWC News

9---Recession’s True Cost Is Still Being Tallied, NYT

10--The Retail Death Rattle, Jim Quinn, The Burning Platform

11--Loans-to-deposits ratio hits a new low, (QE gets the Banks "lending again?) sober look

12----In U.S., 67% Dissatisfied With Income, Wealth Distribution, Gallup

13---Americans' Satisfaction With Economy Sours Most Since 2001, Gallup

14---Obscene wealth: World’s 85 richest have same wealth as 3.5 billion poorest – Oxfam, RT

... according to the Oxfam data, the richest 1 percent of people across the globe have $110 trillion, or 65 times the total wealth of the bottom half of the planet’s population – which effectively “presents significant threat to inclusive political and economic systems.”

15-----Growth in loans at US banks continues to weaken, sober look

Loan growth in the US continues to slow. Credit expansion is certainly not nearly as bad as what has transpired in the Eurozone (discussed here), but the slowing trend is unmistakable. The current rate of loan growth is now significantly below the nominal GDP expansion.

16--In U.S., Fewer Believe "Plenty of Opportunity" to Get Ahead, Gallup

    19---Obama Recovery Fails to Resonate as Americans Left Behind, Bloomberg

    20--American Dream HP
    21--Businesses plan for the death of the middle class, NYT

     22---Personal savings rate plunges, BI

    23---disposable income plummets, zero hedge

    24-----The typical worker makes no more than Dad did in 1979, Rex Nutting
    25---Fewer Americans Than Ever Think They're Middle-Class , Huff Post

    26---The rich are different. They're assholes, naked capitalism

    27--America's false dawn, Stephen Roach

    27--End of 2013: 1,280,000 were at least 90 days past due, DS news
    BKFS’ data also reveals that 3,243,000 properties were at least 30 days past due (but not in foreclosure) at the end of the year, while 1,280,000 were at least 90 days past due. A total of 4,488,000 properties were at least a month delinquent or in foreclosure.
    The total U.S. foreclosure pre-sale inventory rate as of December 31 was 2.48 percent, according to the company—down 0.74 percent on a monthly basis and 27.90 percent yearly. The total number of properties in foreclosure pre-sale inventory was 1,244,000

    29---Income diversity chart, marc to market

    30---Why Have Americans' Income Expectations Declined So Sharply?, Federal Reserve

     Data from the Thomson Reuters/University of Michigan Surveys of Consumers (Michigan survey) suggests that Americans' income expectations declined sharply in the 2008-09 recession and remain depressed. The reasons for this marked increase in pessimism are important because theory suggests that income expectations are a fundamental determinant of consumer spending and may help us understand the slow economic recovery.  

    the unexplained drag on expectations in the recession has not been unwound. This pattern could imply a permanent downshift in income expectations. Alternatively, it might signal the potential for a bounce back in expectations.
    In summary, the pessimism of households about their future income is deep and broad based. The large and persistent decline in income expectations in the aggregate data is evident among several different types of households. This analysis also shows that adverse experiences of households can account for half of the net decline in income expectations since 2007. Given the only modest improvement in household finances and the labor market seen in the aggregate, it is perhaps not surprising that income expectations remain downbeat. Moreover, the large, unexplained shock to income expectations might suggest a permanent change in households' views--a phenomenon that would continue to weigh against a recovery in consumer spending. Or the unwinding of this excess pessimism might provide an extra boost to spending as the economy picks up further. This article highlights some recent work on income expectations--an area of ongoing study.

     Mortgage Volumes Hit Five Year Low

    Source: WSJ
    Source: WSJ


    Source: MacroScope
    Source: MacroScope

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