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.
2017-02-07 07:47:00 Tuesday ET
With prescient clairvoyance, Bill Gates predicted the recent sustainable rise of Netflix and Facebook during a Playboy interview back in 1994. He said th
2022-05-15 10:29:00 Sunday ET
Innovative investment theory and practice Corporate investment can be in the form of real tangible investment or intangible investment. The former conce
2022-08-30 10:32:00 Tuesday ET
The financial services industry needs fewer banks worldwide. As long as banks have existed in human history, their managers have realized how not all dep
2023-05-07 10:27:00 Sunday ET
William Easterly critiques several economic development policies and then indicates that bottom-up solutions often result in macro policy success in spite o
2018-11-19 09:38:00 Monday ET
The Trump administration mulls over antitrust actions against Amazon, Facebook, and Google. President Trump indicates that the $5 billion fine against Googl
2020-10-27 07:43:00 Tuesday ET
Most agile lean enterprises often choose to cut costs strategically to make their respective business models fit for growth. Vinay Couto, John Plansky,