Unemployment

How To Prepare For Another Market Face-Pounding

"...the late-1990s term Goldilocks is again being used to describe why the slow growth, low unemployment, economy is good for stocks. Apparently, if an economy is not-too-cold, but not-too-hot, stocks can go up lots and lots."

Drugs & Demographics - National Tragedy, But Where From?

"There are always grave social and political consequences to prolonged stagnation or depression. It goes way beyond mere statistics of output and labor utilization. The US came out of the Great Depression in many ways nothing like how it went into it...The answer to such despair that might engender so much drug-abused escapism is the satisfying hope that only economic opportunity can afford."

Goldman Cuts Rate Hike Odds After 5th Consecutive Inflation Miss

"we now estimate that the core PCE price index rose just 0.08% month-over-month in July, or 1.40% from a year earlier, down from +1.5% in June. Accordingly, we now place the subjective odds of a third hike this year at 55% (vs. 60% previously)."

The Insecurity Of Social Security

"Of these 41.9 million retirees, more than 60% count on their Social Security to be a primary source of income... This is a huge problem that will not only impact boomers in retirement, but also the economy and the financial markets. It also demonstrates just how important Social Security is for current and future generations of seniors."

The Rise Of Zombie Companies (And Why It Matters)

"The citizen does not benefit from the zombification of the economy. The citizen pays for it. How? With the destruction of savings through financial repression and the collapse of real wage growth. Savers pay for zombification, under the mirage that it 'keeps' jobs."

U.S. Rent Growth Flatlines As Massive Flood Of New Apartment Supply Finally Takes Its Toll

"The huge number of apartments entering the market benefits all renters...some [new developments] even offer concessions, like a month of free rent or free gym memberships. These perks aren’t limited to overly-popular markets such as NYC or San Francisco, either. Minneapolis is also seeing tons of new, top-notch apartments added to its rental market, as is Nashville and Orlando.”

"It's The Economy, Stupid... Not Drugs & Demographics"

"Unless oil prices really break higher, then the bond market gives far more weight to what the FOMC members would all rather never consider – the problem really is money and economy rather than drugs and demographics."

Fannie, Freddie Would Need $100BN Bailout In New Financial Crisis

Fannie Mae and Freddie Mac would need as much as $100 billion in bailout funding in the form of a potential incremental Treasury draw, in the event of a new economic crisis which sends the S&P some 50% lower and results in a failoure of their largest counterparty.

World Stocks Hit Another All-Time High As Crude, Treasurys Drop

World stocks hit a new record high on Monday, as U.S. index futures followed Asian stocks on better-than-expected company earnings and strong US jobs data deflected attention from the rising geopolitical tension over North Korea's nuclear program. European stocks traded near session lows while Crude oil prices fall. The Bloomberg Dollar Spot Index was little changed.