Gen Xers aren’t alone in their financial angst. The finances of the younger Millennial generation have been hurt by the Great Recession in 2008-09 and high college costs. Older Boomers, according to the TD Ameritrade survey, are also uncertain about their preparedness, with just 47% saying they expect to be “very secure” in retirement. The oldest of the roughly 65 million Gen X Americans — those now 39 to 53 — will be the next generation to retire.
Monterrey’s experiment began over a lunch. Mr. Tello was dining with the governor, who received a call from José Antonio Fernández, the head of Femsa, one of Mexico’s largest companies. Femsa’s private security guards, while ferrying employees’ children to school, had been attacked by cartel gunmen, he said. Two had died repelling what was most likely a kidnapping attempt.
The governor put the call on speaker. It was the first of many conversations, joined by other corporate heads who faced similar threats.
Former Treasury Secretary Larry Summers, speaking at a Brookings Institution conference this week on the Fed’s inflation target problem, urged the Fed to get moving on a fix. He noted that the Fed typically has lowered interest rates by 5 percentage points over time to stimulate the economy in recessions. The Fed doesn’t have 5 points now, so the next recession will find the central bank less able to kick-start growth, possibly enabling a longer, deeper downturn.
As I warned before Trump won the election in 2016, a Trump presidency would inevitably be followed by economic crisis, and this would be facilitated by the Federal Reserve pulling the plug on fiat life support measures which kept the illusion of recovery going for the past several years. It is important to note that the mainstream media is consistently referring to Jerome Powell as “Trump’s candidate” for the Fed, or “Trump’s pick” (as if the president really has much of a choice in the roster of candidates for the Fed chair). The public is being subtly conditioned to view Powell as if he is an extension of the Trump administration.
2018: The Year of Living Dangerously (thc0655)
To understand why 2018 may unfold catastrophically, we can begin with a simple metaphor. Imagine a magnificent mansion built with the finest materials and craftsmanship and furnished with the most expensive couches and carpets and decorated with fine art.
Rates of return both influence and are influenced by the way firms and households expect the future to unfold. They therefore find their way into all sorts of economic models. Yet data on asset returns are incomplete. The new research, published as an NBER working paper in December 2017, fills in quite a few gaps. It is the work of five economists: Òscar Jordà of the San Francisco Fed, Katharina Knoll of the Bundesbank, Alan Taylor of the University of California, Davis, and Dmitry Kuvshinov and Moritz Schularick, both of the University of Bonn. (Messrs Jordà, Schularick and Taylor have spent years building a massive collection of historical macroeconomic and financial data.) For each of the 16 economies, they craft long-term series showing annual real rates of return—taking into account both investment income, such as dividends, and capital gains, all net of inflation—for government bonds and short-term bills, equities and housing. Theirs is the first such data set to gather all of that information for so many countries over so long a period.
Rising real estate values, tight inventory and a lack of new construction are contributing to the surge in million-dollar homes. Yet another factor may be at play: rising income inequality, which has benefited the bank accounts of America’s richest families.
The book celebrates perseverance, of course — but also another value Cheung and her collaborators tracked: steering clear of bad influences. As Cheung puts it, “avoiding a negative person and staying on track and not being distracted by things that would derail you from achieving your goals.”
In this case the man keeps on digging “even as he has to endure criticism from his fellow villagers who call him silly. And in the end he actually removes the mountain.”
That would be a major shift in California, where municipal officials have long believed they couldn’t adjust the benefits even as they struggle to cover the cost. They have raised taxes and dipped into reserves to meet rising contributions. The California Public Employees’ Retirement System, the nation’s largest public pension, has about 68 percent of assets needed to cover its liabilities. For the fiscal year beginning in July, the state’s contribution to Calpers is double what it was in fiscal 2009.
Exercise also has been associated with variations in the microbiome. Past studies have shown that endurance athletes tend to have a somewhat different collection of microbes within their intestines than sedentary people do, especially if the athletes are lean and the sedentary people are not.
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