2018-07-17 08:35:00 Tue ET
stock market competition macrofinance stock return s&p 500 financial crisis financial deregulation bank oligarchy systemic risk asset market stabilization asset price fluctuations regulation capital financial stability dodd-frank
Henry Paulson and Timothy Geithner (former Treasury heads) and Ben Bernanke (former Fed chairman) warn that people seem to have forgotten the lessons of the global financial crisis from 2008 to 2009. As Paulson, Geithner, and Bernanke note, the sharp surge in U.S. budget debt and deficit, financial deregulation, and political dysfunction, may combine to endanger the economy. Most Americans face a more stable financial system today as the defenses are better, whereas, U.S. regulators now have a weaker set of tools for coping with a severe financial downturn.
These former top-notch economic heads voice their deep concerns about the next economic recession. Recent stock market gyrations exhibit much larger volatility in response to Trump tariffs and tax cuts. Also, bond market analysts express their worries and concerns about potential yield curve inversion that might signal the dawn of the next economic downturn. As U.S. government bond issuance cannot fund incessant budget deficits, the budget deficits may reflect the need for greater seigniorage or inflation taxation. An increase in money supply growth can induce inflationary momentum with higher consumer prices and wages.
As the Federal Reserve continues the current interest rate hike in the foreseeable future, greater greenback strength may dampen U.S. exports. As a consequence, this economic policy uncertainty may pose a conceptual challenge to many stock market investors, bond analysts, and currency traders.
In light of the recent economic developments, it would be better for long-term value investors to put their capital in profitable small-to-mid-size bluechip cash cows with low capital investment and asset growth.
If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.
2017-07-25 10:44:00 Tuesday ET
NerdWallet's new simulation suggests that a 25-year-old millennial who earns an inflation-free base salary of $40,456 and saves 15% each year faces a 99
2018-07-17 08:35:00 Tuesday ET
Henry Paulson and Timothy Geithner (former Treasury heads) and Ben Bernanke (former Fed chairman) warn that people seem to have forgotten the lessons of the
2019-12-13 09:32:00 Friday ET
Saudi Aramco aims to initiate its fresh IPO in December 2019. Several investment banks indicate to the Saudi government that most investors may value the mi
2019-02-28 20:44:00 Thursday ET
AYA Analytica finbuzz podcast channel on YouTube February 2019 In this podcast, we discuss several topical issues as of February 2019: (1) our proprieta
2023-12-03 11:33:00 Sunday ET
Macro innovations and asset alphas show significant mutual causation. April 2023 This brief article draws from the recent research publicati
2019-01-05 11:39:00 Saturday ET
Reuters polls show that most Americans blame President Trump for the recent U.S. government shutdown. President Trump remains adamant about having to shut d