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.
2018-07-27 10:35:00 Friday ET
Admitting China to the World Trade Organization (WTO) and other international activities seems ineffective in imparting economic freedom and democracy to th
2019-07-03 11:35:00 Wednesday ET
U.S. regulatory agencies may consider broader economic issues in their antitrust probe into tech titans such as Amazon, Apple, Facebook, and Google etc. Hou
2017-03-15 08:46:00 Wednesday ET
The heuristic rule of *accumulative advantage* suggests that a small fraction of the population enjoys a large proportion of both capital and wealth creatio
2018-03-06 11:35:00 Tuesday ET
The Trump team blocks Broadcom's bid for Qualcomm due to national economic security concerns and 5G telecom network issues. Broadcom makes microchips fo
2019-01-03 10:38:00 Thursday ET
American parents often worry about money and upward mobility for their children. A recent New York Times survey suggests that nowadays American parents spen
2018-06-06 09:39:00 Wednesday ET
Donald Trump and Kim Jong Un meet, talk, and shake hands in the historic peace summit between America and North Korea in Singapore. At the start of the bila