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.
2019-08-08 09:35:00 Thursday ET

Kobe Bryant and several other star athletes have been smart savvy investors. In collaboration with former Web.com CEO Jeff Stibel, the NBA champion invests
2019-03-17 14:35:00 Sunday ET

U.S. trade rep Robert Lighthizer proposes America to require regular touchpoints to ensure Sino-U.S. trade deal enforcement. America has to maintain the thr
2019-06-11 12:33:00 Tuesday ET

Dallas Federal Reserve Bank President Robert Kaplan expects the U.S. economy to grow at 2.2%-2.5% in 2019-2020 as inflation rises a bit. In an interview wit
2017-03-21 09:37:00 Tuesday ET

Trump and Xi meet in the most important summit on earth this year. Trump has promised to retaliate against China's currency misalignment, steel trade
2019-01-19 12:38:00 Saturday ET

U.S. government shuts down again because House Democrats refuse to spend $5 billion on the border wall that would give President Trump great victory on his
2025-10-01 10:29:00 Wednesday ET

Stock Synopsis: With a new Python program, we use, adapt, apply, and leverage each of the mainstream Gemini Gen AI models to conduct this comprehensive fund