Social media users, learn how you are being manipulated.
Another interesting missive from Wolf. Will it take another three-plus years for the market to crash?
In recent years, market participants have forgotten the lessons of the crash and have re-learned the lesson of the bull market: just buy the effing dip.
The Skynet Economy advances. Interesting data points.
Via the FT. Let’s all take to calling it Trumpcare as often as possible….
A disproportionate share of those losing their insurance would be older, white Americans who voted Trump.
Interesting point in an FT article today: If Big Data is seen by companies and investors as an asset, one reflected in valuations, regulations on its use, like the one in Europe kicking in next year, could have a big bottom-line impact on company financials and share prices. Alphaville does a read-across from oil – if the government were to regulate it more dramatically, what would happen, etc. Not an entirely airtight argument, but a conversation starter.
Serial blunders in the structure of retirement vehicles, especially Social Security, explained. A long post on Naked Capitalism, well worth reading – including the comments. From the embedded interview of Michael Hudson:
The Federal Reserve has just published statistics saying the average American family, 55 and 60 years old, only has about $14,000 worth of savings. This isn’t nearly enough to retire on. There’s also been a vast looting of pension funds, largely by Wall Street. That’s why the investment banks have had to pay tens of billions of dollars of penalties for cheating pension funds and other investors. The current risk-free rate of return is 0.1% on government bonds, so the pension funds don’t have enough money to pay pensions at the rate that their junk economics advisors forecast. The money that people thought was going to be available for their retirement, all of a sudden isn’t. The pretense is that nobody could have forecast this!
There are so many corporate pension funds that are going bankrupt that the Pension Benefit Guarantee Corporation doesn’t have enough money to bail them out. The PBGC is in deficit. If you’re going to be a corporate raider, if you’re going to be a Governor Romney or whatever and you take over a company, you do what Sam Zell did with the Chicago Tribune: You loot the pension fund, you empty it out to pay the bondholders that have lent you the money to buy out the company. You then tell the workers, “I’m sorry there is nothing there. It’s wiped out.” Half of the employee stock ownership programs go bankrupt. That was already a critique made in the 1950s and ‘60s.