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The bigger immediate story for the market is the fiscal fight, which is getting almost no attention outside of the political press, but is looking kind of 2011ish.
It still appears economic growth will pickup over the next few years. With a combination of growth in the key housing sector, a significant amount of household deleveraging behind us, the end of the drag from state and local government layoffs (four years of austerity mostly over), some loosening of household credit, and the Fed staying accommodative (even if the Fed starts to taper, the Fed will remain accommodative).
The global economy could be in the early stages of another crisis. Once again, the US Federal Reserve is in the eye of the storm.
The Netherlands has come top of a league table for child well-being across 21 industrialised countries.
After trying to work out how big China’s bad debt problem might be, many people still turn round and point to the country’s mammoth foreign exchange reserves as its great get-out clause.
Has the Federal Reserve’s quantitative easing programme done more to damage emerging markets than to boost the US recovery?
The answer is what John Maynard Keynes proposed in the 1930s: an international reserve asset, rules for pricing national currencies against it, and penalties for countries that run a persistent surplus.
The fact that rich people often think they’re better than poor people is one of those unspoken truths of society. We all know it happens, even if no one likes to admit it. Luckily, we’ve got the research to prove it.
In an email to Business Insider this morning, El-Erian forwarded his list of 8 major questions facing markets and the economy today.
Google will again take a majority – 53% — of all mobile ad dollars this year, according to eMarketer
It started on Monday with the Palo Alto-based luxury electric sedan maker acing government crash tests for its Model S sedan. On Wednesday it announced it was taking pre-orders in China. On Thursday it announced the opening of its second manufacturing facility, this one in Tilburg, Netherlands. On Friday, Bloomberg reported that Telsa is beginning to deliver more than 300 cars to customers in Hong Kong ahead of its entry to the Mainland.
Earlier this summer, the government’s bureaucrats revised—upwards!—their estimate of the size of the economy based in part on the value of ideas generated over time.
Vote me out of jail, or I will bring the country down with me. This, essentially, is the message Silvio Berlusconi—four-time prime minister, owner of the country’s three main commercial TV channels, criminal defendant many times over—has just sent to the Italian government
“To be in the top 25 for eight consecutive years before you crash and burn the economy, it’s just unbelievable,” said Sarah Anderson, one of the report’s authors.