Recovery Delivers Sinking Wages for Younger Workers

Millennials are experiencing sinking wages across almost every industry. So we keep hearing about this “recovery” that is going on. Even in an article about descending wages, the writer rehearses the standard line. The evaporation of real wages for young Americans is a real mystery because it’s coinciding with what is otherwise a real recovery. The economy has been growing steadily since 2009. We’re adding 200,000 jobs a month in 2014. That’s what a recovery looks like. And yet, overall Read more […]

Seniors on Fixed Income Suffer Deprivation So NYC Real Estate Can Enjoy a Boom.

The New York Times reports: The luxury market has been strong for some time, but it exploded in the first quarter, with prices jumping 45 percent to an average of $7.4 million from $5.1 million, according to data from the appraisal firm Miller Samuel. That is the largest year-over-year increase in six years. Driving the market has been a staggering lack of inventory. Just 174 new condominium units came to market in Manhattan in the first quarter, a 73 percent drop from the first quarter of 2013, Read more […]

Does Stock Market Euphoria Mean A Better Economy? Americans Aren’t Buying It

Bloomberg reports, “U.S. Stocks Rise for Week as Data Bolster Growth Optimism.” U.S. stocks rose for a second straight week, with benchmark indexes reaching all-time highs, as data from durable goods to housing and employment fueled optimism that the world’s largest economy is strengthening. Alcoa Inc. and Freeport-McMoRan Copper & Gold Inc. advanced at least 5.1 percent, pacing gains among commodity producers. Homebuilders rallied 5.5 percent as a group after sales of new homes topped Read more […]

Warren Buffet: Obama’s Welfare Queen

The media is full of news about the (miniscule) “taper” that the Federal Reserve is doing. It is asking what will happen to the stock market. Yet this story appeared without any mention of Quantitative Easing or Federal Reserve stimulus. Warren Buffett gained more wealth than any other U.S. billionaire, adding $37 million a day, according to one study. Through Dec. 11, Buffett’s net worth—at least on paper—shot up by $12.7 billion to $59.1 billion in 2013 from $46.4 billion at the start Read more […]

Former Fed Reserve Official Apologizes For Quantitative Easing

This is great confirmation for what real economists have been saying about the Federal Reserve for some time, and especially about Ben Bernanke’s strategy. Andrew Huszar writes: I can only say: I’m sorry, America. As a former Federal Reserve official, I was responsible for executing the centerpiece program of the Fed’s first plunge into the bond-buying experiment known as quantitative easing. The central bank continues to spin QE as a tool for helping Main Street. But I’ve come to recognize the Read more […]

Are We Sailing on an Economic Titanic?

We’ve all heard the term QE or Quantitative Easing. This is the third iteration of easing, jokingly coined as QE-Infinity. It is the demented idea of the Federal Reserve and in particular chairman Ben Bernanke. For those unfamiliar with QE3, it is a program wherein the Fed purchases $85 billion of government debt; $45 billion in bonds and $40 billion in mortgage-backed securities. In a nutshell, unlike the other two QEs, which were one-time massive influxes of money into the economy, and did no Read more […]

What Is Quantitative Easing?

Federal Reserve Chairman Ben Bernanke announced Thursday that the Fed will be rolling out QE3; that is, a third round of quantitative easing. Quantitative easing is another way of saying that the Fed will create money from nothing, inject it somewhere in the economy and hope that it gets the economy moving. He’s promising to keep interest rates low until 2015 and to pump an additional $40 billion per month (for a total of $85 billion per month) into mortgage-backed securities at least until the Read more […]