Economics

13 January 2015

Does Maximizing Shareholder Wealth Accomplish Anything Else?

Modern capitalism has a massive structural flaw in one of the cornerstones of its existence. The corporations which form the predominant business structure and which are the main instrument for dividing wealth have been operating on a false premise. Modern...

9 January 2015

The Week in Review: Volatility High, Prices Low

U.S. equities saw a fall and recovery amidst greater uncertainty about falling prices in Europe and in the U.S.The S&P 500 saw three straight days of steep declines before reviving at the end of this week, leaving the index down...

9 January 2015

The Impact of Oil on the US and European Economies

According to experts, the plunge in oil prices renews weaknesses within the already worrying global economy, which could shake up governments that depend largely on oil-based revenue. At the same time, reduced oil prices could provide benefits to consumers, giving...

8 January 2015

Dollar Strength, ECB QE and Aussie Economic News

The combination of the outright deflation in the Eurozone and the seemingly immunity of the US economy to the poor global developments has encouraged investors to extend the dollar's gains.  The euro has been pushed below $1.18.  Sterling neared $1.50....

5 January 2015

Do Global Trade Deals Hinge on ‘fast-track’ Tactics?

With the resounding Republican victory in November’s midterm elections, most pundits are despairing that Congress and President Barack Obama will find any areas for cooperation in the coming two years. If there is a potential bright spot of mutual interest,...

5 January 2015

Obesity is Weighing Down the World’s Economy

The issue of increasing obesity levels throughout the world is gaining weight as an economic issue. Today, approximately one third of the world's population is obese or overweight.  As a result, the plague of obesity is creating an economic drain...

5 January 2015

Energy Falls Further on Higher Oil Output

Amidst a declining currency and lower revenue from an oil glut, energy-exporter Russia continues to boost production. Amidst a declining currency and lower revenue from an oil glut, energy-exporter Russia continues to boost production.Russian oil output rose 0.3% in December...

3 January 2015

New Year, Same Divergent Theme for the Dollar

The US dollar began the New Year with strong gains against both major and emerging market currencies.  Comments from the BOJ's Kuroda and ECB's Draghi underscore the divergence between the US and other high-income countries.  The former discussed other tools...

2 January 2015

Piketty Snubs Government Award, Urges Growth Focus

French economist Thomas Piketty rejected an honor from the French government, dismissing the award and urging French policymakers to focus on growth.Saying that it is not government’s role to decide who is honorable, Piketty rejected the Legion d’Honneur, an award...

31 December 2014

U.S. Home Price Growth Rate Falls but Consumers Are Confident

American home prices fell slightly in the latest data, but consumer confidence has reached a yearlong high as cheap oil spurs higher consumption.The S&P Case-Shiller index saw a 4.5% year-over-year rise in home prices, but that included a 0.1% month-over-month...

30 December 2014

Investment Bank Economists See Improving U.S. Growth in 2015

Several economists at investment banks have predicted strong and improving economic growth in 2015, leading to growing confidence in higher interest rates for U.S. bonds.Goldman Sachs has published its forecasts for 2015, which predict global GDP growth of 3.4%, above...