Major difference between the 1970s and now are all the changes made to the formulation used in calculating the CPI. Its incredibly convenient that virtually all of those changes brought a downward bias to the rate. One might think the intent was to lower the CPI and not to make it accurate.
The NYT backs President Obama's call to increase the minimum wage, although it wants the figure raised further than Obama's "low-ball" proposal of $9/hour. "The argument that a higher wage will kill jobs has been debunked by a range of studies," while it also boosts productivity," the NYT writes. Over on Reuters, Reihan Salam calls the minimum wage "a poor solution," saying there are better, more targeted anti-poverty policies, such as tax credits. [View news story]
Even liberal economists concluded a while back that raising the minimum wage will cost jobs. NYT is repeating the same old lie hoping that repeating it will somehow change reality. The fact is Obama is counting on the minimum wage not rising simply because small businesses will already be dealing with a major change to their cost structure with the enactment of Obamacare. Obamacare is written with small business incentives to cut hours, and lay off workers to avoid the higher cost structure. But plenty others will take the hit of higher healthcare insurance premiums or pay an annual fine per employee. Adding a new higher minimum wage to that is economic insanity. Obama wanted to make a feeble appearance of supporting a higher minimum while happily accepting it won't budge in either the Senate or the House.
A long-running SEC investigation into possible corruption by U.S. movie studios in China is casting a shadow over Hollywood's dealings in the country, especially as there hasn't been too much information on the inquiry's progress. At the same time, Chinese consumers have started to prefer home-grown blockbusters over Hollywood fare. Still, the show goes on, with "Kung Fu Panda 3" and "Iron Man 3" among the projects that use China for filming. [View news story]
If you put in one room a company representative of every company doing business in China, you could throw a rock and hit someone who has bribed Chinese officials, 99 out of 100 times.
Medical Marijuana: It's Just A Pump And Dump [View article]
Irrespective of any evidence that proves anything about this company, its clear the company can easily draw in a lot of buyers without any homework done. People that are passionate about their cause will buy out of emotion.
Wall Street Breakfast: Must-Know News [View article]
If anything, little earthquakes relieve the tension that builds up for the more feared larger earthquake. Nevertheless, California environmentalism won't give a millimeter to anything new that rewards the gas and oil industry. Existent drilling is the last the state will ever see.
The FHA is no longer insuring mortgages for anyone with a credit dispute of more than $1K. One attorney estimates the action could result in a 33-50% decrease in FHA originations this year. The FHA is under pressure - with the word bailout being tossed around - as its capital has slipped well beneath mandated levels. [View news story]
Maybe they'll just reinvent a new housing agency and fund it late in the afternoon before three day weekends. I remember Fannie Mae being given their blank check to unlimited spending on December 24, 2011.
7 Stocks Short-Term Investors Should Stay Away From [View article]
On the other hand , stocks that underperformed thoughout 2011 will typically continue to underperform into December as people seek tax loss candidates from their portfolios. Once the calendar year is over, the negative sentiment will typically subside and value investors will often times scoop down and buy up what they believe to be undervalued gems. In fact, plenty of value investors will anticipate that effect and start buying them up before 2011 is over.
Even as Pres. Obama proposes steps for student loan debt relief, real wages for college graduates continue to drop, Mike Mandel observes. In Q3 2011, full-time workers with a bachelor’s degree and no advanced degree earned 3.5% less Y/Y in real wages, continuing a long-term trend. And because real wages are declining, it’s much harder for grads to pay back their loans. [View news story]
I certainly don't want to tell people what to study but borrowing $200K to get a degree in sociology, philosophy, anthropology or English is the type of decision-making I wouldn't want in someone I hire.
Aside of that, I'm appalled at this blatant buying of votes using taxpayer money. His proposal is to cap the rate at which a borrower must repay a loan 50% lower than the current standard (15% of income reduced to 10%) and further changing the cap for the length of time that loan payments must be made (reducing it from 25 yrs to 20). The administration says this won't cost taxpayers anything but the fact is it will cost taxpayers hundreds of billions over time in reduced proceeds.
As consumer confidence craters to early-2009 levels, confidence in the U.S. government also hits frightening depths, as Congress’ approval rating hits 9%, according to the latest NYT/CBS poll. 89% don’t believe government will do the right thing, two-thirds say income should be more equally distributed, and two-thirds object to tax cuts for corporations. [View news story]
If a company can actually retain you with pay of $8 or $9 an hour, the problem isn't the CEO rather your lack of skills, experience, intelligence, efficiency, or ambition. Cruising through high school to earn a rubber-stamp diploma is the entrance fee to an economy overfilled with commoditized unskilled workers. In a competitive global marketplace it will, and should be, the more ambitious and clever that will rise. The lazy and stupid will have earned their deserved fruits. We've all seen the wisdom of entitlement for all play out in Greece, Italy, and Spain. This is life. Deal with it.
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Wall Street Breakfast: Must-Know News [View article]
The NYT backs President Obama's call to increase the minimum wage, although it wants the figure raised further than Obama's "low-ball" proposal of $9/hour. "The argument that a higher wage will kill jobs has been debunked by a range of studies," while it also boosts productivity," the NYT writes. Over on Reuters, Reihan Salam calls the minimum wage "a poor solution," saying there are better, more targeted anti-poverty policies, such as tax credits. [View news story]
A long-running SEC investigation into possible corruption by U.S. movie studios in China is casting a shadow over Hollywood's dealings in the country, especially as there hasn't been too much information on the inquiry's progress. At the same time, Chinese consumers have started to prefer home-grown blockbusters over Hollywood fare. Still, the show goes on, with "Kung Fu Panda 3" and "Iron Man 3" among the projects that use China for filming. [View news story]
Medical Marijuana: It's Just A Pump And Dump [View article]
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The FHA is no longer insuring mortgages for anyone with a credit dispute of more than $1K. One attorney estimates the action could result in a 33-50% decrease in FHA originations this year. The FHA is under pressure - with the word bailout being tossed around - as its capital has slipped well beneath mandated levels. [View news story]
7 Stocks Short-Term Investors Should Stay Away From [View article]
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Even as Pres. Obama proposes steps for student loan debt relief, real wages for college graduates continue to drop, Mike Mandel observes. In Q3 2011, full-time workers with a bachelor’s degree and no advanced degree earned 3.5% less Y/Y in real wages, continuing a long-term trend. And because real wages are declining, it’s much harder for grads to pay back their loans. [View news story]
Aside of that, I'm appalled at this blatant buying of votes using taxpayer money. His proposal is to cap the rate at which a borrower must repay a loan 50% lower than the current standard (15% of income reduced to 10%) and further changing the cap for the length of time that loan payments must be made (reducing it from 25 yrs to 20). The administration says this won't cost taxpayers anything but the fact is it will cost taxpayers hundreds of billions over time in reduced proceeds.
As consumer confidence craters to early-2009 levels, confidence in the U.S. government also hits frightening depths, as Congress’ approval rating hits 9%, according to the latest NYT/CBS poll. 89% don’t believe government will do the right thing, two-thirds say income should be more equally distributed, and two-thirds object to tax cuts for corporations. [View news story]