Daily Digest 5/7 - Investors Fret After Elections, When The Euro Will Lose Support, Walmart And Corporate Corruption
- Investors fret after Greek, French elections
- The Fraud And Theft Will Continue Until Morale Improves
- This One Little Detail Could Tell You When The Euro Will Lose Support
- Arrests and Violence at Overflowing Rally in Moscow
- Six More Months
- Invsible Hand, Greased Palm
- To Pay Off Loans, Grads Put Off Marriage, Children
Investors fret after Greek, French elections (Ernest W.)
Greek and French election results rattled investors on Monday by undermining confidence in the region's plans to cut spending and tackle its debt crisis, sending the euro to a three-month low.
European shares also traded lower, with Greek stocks down 6.4 percent .ATG, but reaction was muted with the UK market closed for a holiday.
If you really want to understand what has happened in this country over the last forty years, you need to analyze the data across the decades. This uncovers the trends over time that has led us to this sorry state of affairs. The chart below details the major components of personal income over time as a percentage of total personal income. It tells the story of a nation in decline and on an unsustainable path that will ultimately result in a monetary collapse.
You may have heard the term repatriation used to describe why the value of the Japanese yen performs well when market risk is high. That is: Japanese investors bring their money back home which requires they convert their investment capital back to yen, thus boosting the currency’s value.
In Europe the mechanics are ultimately the same, but the catalysts are somewhat different …
The result was a prolonged confrontation. The police in full riot gear charged into the crowd, dragging out people they suspected of pelting them with bottles and chunks of asphalt, and beating some brutally with nightsticks. On the other bank of the river, a large crowd cheered when protesters snatched helmets from officers and threw them into the water, and chanted, “Shame, shame, shame.”
Six More Months (jdargis)
When Ronald Reagan took office, in 1981, unemployment was at 7.5 per cent, and soon rose to much higher levels. By the time he ran for reëlection, in 1984, the number was back where it had started. Obama’s first term has followed the same path. Reagan argued for a second term on the assumption that the answer to his famous question from 1980—“Are you better off than you were four years ago?”—would be favorable the second time around. He told the country to stay the course, and his “Morning in America” ad ended by asking, “Why would we ever want to return to where we were less than four short years ago?”
Invsible Hand, Greased Palm (jdargis)
While bribes may make things run more smoothly in the short run, in the long run they hurt both the business of the bribers and the economies of the bribed. As the economists Daniel Kaufmann and Shang-Jin Wei have shown, bribes beget more bribes: far from cutting through the red tape, they give bureaucrats a reason to produce more of it; each regulation creates another opportunity to collect a payoff. Walmart’s bribes in Mexico may have enabled the company to build its stores more quickly, but they also gave local officials an incentive to make the permit process as difficult and arcane as possible.
Total U.S. student-loan debt outstanding topped $1 trillion last year, according to the federal Consumer Financial Protection Bureau, and it continues to rise as current students borrow more and past students fall behind on payments. Moody's Investors Service says borrowers with private student loans are defaulting or falling behind on payments at twice prerecession rates.
Article suggestions for the Daily Digest can be sent to [email protected]. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the "3 Es."