Category: Economic Conditions

Average Americans Grow Poorer as U.S. Per Capita Wealth Reaches New High


America is richer than it has ever been in human history, according to a study by the Federal Reserve.

According to the Federal Reserve’s measurement of households and nonprofit organizations’ total assets (HNOTASQ027S), American total wealth per person soared to over $309,000 by September 2014, up over 38% from its post-crisis low in 2009. 

In total, Americans own over $95 trillion in assets. Over 70% of those holdings are financial assets held in instruments like common stock, bonds, and other asset-backed securities.

Dollar Strength Persists in the Wake of Weak Eurozone and Japanese Data


Ahead of the ECB’s meeting on Thursday where details of the ABS/covered bond purchase scheme are expected to be delivered, the market is particularly sensitive to developments that could spur a strong policy response.  Today’s preliminary September CPI figures were seized upon to drive the euro to fresh lows, against both the dollar and sterling.  

U.S. Industrial Production Falls Despite Low Oil Prices


Industrial production in the United States suddenly contracted despite more optimistic expectations of stable or growing production.

According to the Federal Reserve survey on industrial production and capacity utilization, total industrial production fell 0.1% in August and manufacturing fell 0.4%, reaching a seven-month low. While remaining 24.3% above the recession low, industrial production disappointed analysts who expected a U.S. recovery in manufacturing to drive the index higher.

Yes, the Strong Dollar Hurts Earnings, but so does Weak Demand


How much of a headwind is international exposure causing US-based companies?  Factset did a study earlier this month, drawing on a combination of companies that had already reported Q3 earnings and used estimated results for those who had not reported. 

The Problem with ‘Static’ Development Models: by Michael Pettis


With a shift in economic strategy comes a radical change in the relationship between underlying growth variables and their impacts on growth. Instead of making predictions and estimations extrapolated from previous forecasts – the problem with most development and growth models – a better and more meaningful understanding of China, and other emerging or international markets for that matter, can be achieved if research and analyses were conducted in a grounded and sound manner.

Happiness Matters Too: Ben Bernanke


Federal Reserve Chairman Ben Bernanke has called for compassion for the average American, arguing that economic indicators fail to reflect the suffering of individual citizens. US unemployment in July remained stubbornly high at 8.3 percent, with an estimated 12.8 million Americans out of work.

Speaking via a prerecorded video at the International Association for Research in Income and Wealth, Bernanke urged economists and researchers to look for better ways to measure well-being so they can make stronger and more effective policy decisions.

Skyscraper Index: The Higher You Build, The Harder You Fall


China and India could be the next economies bound for an imminent crash, claimed a report by Barclays Capital Research on Wednesday – whose annual Skyscraper Index survey cite an “unhealthy correlation” between the construction of skyscrapers and economic slowdowns.

John Nash Game Theory


Supply Theory


The Supply Theory is one of the fundamental theories of economics. It is also a foundation on which many other theories are based. The supply theory generates lots of other models that are equally important to economics. Supply directly influences resource allocation. Therefore, it is a valuable tool that is used to analyze the working of a market economy.