U.S. Economy Archives - Page 7 of 107 - Money Morning - Only the News You Can Profit From
Brace Yourself: This Is What the Fed’s QE Has Done for Our Economy
The Fed's QE (quantitative easing) program has created multiple trillions of dollars since it first started in 2008.
But now there are signs the QE policy will finally come to a close.
What You Need to Know About Silver Prices and the Fed QE Taper
Silver prices have rebounded about 28% since the lows of late June, and are currently trading at around $23 an ounce.
This move was key for silver prices – it means the metal broke out above its 50-day moving average.
Barclays' technical analysts pointed out that last week was silver's best week since 2011, with a gain of 14.3%.To continue reading, please click here...
The Most Important Number to Watch This Week
The esoteric – yet highly accurate – Hindenburg Omen we looked at Friday may suggest the probability of a market crash. But the number I'm watching this week could cause one.
As a standalone figure, of course, the yield on 10-year Treasuries is small. But the amount of money it impacts worldwide is flat-out staggering.
Out of the estimated $1.5 quadrillion dollars' worth of derivatives on the planet right now, roughly $500 trillion is specifically related to interest rates.
So you can see why the 10-year gets so much attention. But right now, I'm watching it even more carefully… for one important reason.
When the Hindenburg was sounding the alarm last week, 10-year Treasury yields spiked at the same time, up to 2.8210% before relaxing a bit in early trading last Friday as of press time. That suggests to me the Fed is losing control over interest rates.
No doubt this is a frightening scenario, which is why it's important to remember…
The Best Way to Ignite the Economy
The problem with the U.S. government's stimulus efforts to create jobs, and the Federal Reserve's quantitative easing to foster full employment, is that banks are the only direct beneficiaries.
There's just no good pool of jobs being formed from the trickle-down effect that first bathes bankers in bonuses, and then showers shareholders with buybacks and dividends.
There is a better way.
And, in spite of the details which additionally involve two necessary but minor structural changes that can be accomplished with the stroke of a pen, there are only two primary steps we need to take to create good-paying, long-term jobs and crank up economic growth.
Step 1 to Growth and Better Jobs
The Most Hated Man on Wall Street – And Why You Should Back Him
A little more than two weeks ago a "little" story hit the news. And by little, I mean perhaps the biggest money story that you and I will likely see in our lifetimes.
That's because, for the first time in decades, it sets up two opponents, Wall Street and Washington, on opposite sides of the ring.
So who is "the most hated man on Wall Street" right now. That would be Senator Angus King, along with his cohorts Senators Elizabeth Warren and John McCain.
Why Millions of Americans are Still "Trapped" in Their Homes
For millions of Americans who were underwater on their mortgages, the tide is finally receding.
Housing not only generates construction jobs, one of the hottest job sectors in the country right now, it also sparks spending on home furnishings and appliances. And as home prices increase, people feel more wealthy and tend to spend more.
The number of homeowners underwater – those who owe more on their mortgage than their home is worth – dropped in the first quarter to 25.4% percent of all mortgages, or 13 million homeowners, from 31.4 % a year earlier, real estate researcher Zillow reports.
The "Part Time-ification" of America: How We've Been Conned Again
By now, you've had a few days to digest the "wonderful" jobs numbers reported from Washington last Friday.
Well, don't get too excited about the economy. We've been conned again.
First off, 59% of all jobs created this year are in 3 sectors: Leisure/Hospitality, Retail Trade and Administrative/Waste Services. Wages in those sectors have fallen by 0.7%. These jobs pay an average of $15.80 per hour versus the $23.98 average hourly wage. Which means "jobs creation" just equals cheaper labor.
The American jobs participation rate is at 34-year lows and falling, as people give up and leave the workforce.
Underemployment is between 14% and 15% and rising.