Economy and Trends

College Students: Just Say No to New Income Sharing Agreement

Just say no to the new Income Sharing Agreement (ISA). I could leave it at that and write no more. Through a new kind of financial instrument called an ISA, financiers are transforming student debtors into stock investments, with much of the same risk and, ideally, greater returns. But the millennials who are mortgaging their futures by giving equity in ...

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The Fed Minutes, Inflation, and Personal Biases

The minutes from the most recent FOMC meeting were released on Wednesday, and it revealed mostly what we already knew. The Fed doesn’t see the need to raise or lower rates at this time. Even though investors pretty much knew this, the market rallied after the release. With investors seemingly more interested in the Fed than actual company related news, ...

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The Ugly side of Minimum Wage Hikes

It was just a matter of time until the sludge of the incompetent do-gooders dripped back to their various states. You know who I’m talking about. Massachusetts, New York, California, Mexico. My bad, sovereign Mexico is not a state, yet, albeit their wandering citizens too may benefit from the nastier side of minimum wage rate hikes. And what exactly do ...

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Tight Labor Market Could Hurt in the Long Run

The U.S. labor market has been in the spotlight over the past week with several different economic reports being released. The bulk of the reports show that the U.S. labor market is the strongest it has been in decades. The March employment report was released on Friday, and it showed that non-farm payrolls bounced back nicely after the subpar report ...

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South African Power Outages Compromising Economic Activity

Apparently the sea levels are not rising around Cape Town, South Africa, as the nation again gains attention for the deleterious results of the lack of electrical power. No, I didn’t say Venezuela, where either the lights came back on, or it no longer is newsworthy, at least to the American left. The South African state-run utility, Eskom, provides approximately ...

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Confused as an Investor? Fed Turn Dovish

The Federal Open Market Committee held a two-day meeting on Tuesday and Wednesday, and the decision on rates was released at 2:00 PM Eastern Time on Wednesday. The committee did exactly what people thought it would do, and left the target rate exactly where it is. But, the committee surprised everyone with the statement that accompanied the rate decision. The ...

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ECB Follows China’s Lead Creates New Stimulus

In a surprise move, the European Central Bank announced a new stimulus package at its policy meeting on Thursday. The ECB announced no changes to the rates and it signaled that it will hold interest rates where they are for the rest of 2019. This is almost a complete reversal from what the bank’s stated policy was just three months ...

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Has President Trump Cried Wolf One Too Many Times?

It is clear that President Trump pays a great deal of attention to the stock market. He has made numerous comments about the market over the last few years, and usually it is regarding how well it is doing. Personally, I like the fact that he is aware of what is going on in the market, being that I am ...

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Global Economic News Paints a Gloomy Picture

The last few days have been busy ones for global economic reports. Most of the reports have pointed to a global economic slowdown, with the U.S. being one of the few countries that have produced positive surprises. Bloomberg host Jonathan Ferro stated this morning, “Global growth is looking soft, Europe is looking terrible, China looks dreadful, and the United States ...

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