Econintersect: Every day our editors collect the most interesting things they find from around the internet and present a summary "reading list" which will include very brief summaries of why each item has gotten our attention. Suggestions from readers for "reading list" items are gratefully reviewed, although sometimes space limits the number accepted.
Today we on the U.S. and global employment and wage issues, plus credit and the economy in China and a deflation warning.
- Roubini: Fear of Bond Market Rout Is Overblown (Gil Weinreich, ThinkAdvisor)
Speaking Wednesday [29 January 2014] at ETF.com's InsideETFs conference in Hollywood, Fla., the head of Roubini Global Economics and NYU business professor said 2014 was likely to be a good year for stocks and not a disastrous year for bonds, as many fear.
- When Will Beijing's Trust Bailouts End? (Anne Stevenson-Yang, The Wall Street Journal) So far every time a Chinese trust starts to fail, it is rescued at government behest. Stevenson-Yang says that China is simply shoring up moral hazard and supporting bad debt to mainatin the appearance of high growth. See also GEI Analysis for a detailed explanation of the problem by Michale Pettis.
- Is China About To Plunge Into Financial Crisis? (Rana Foroohar, Time) Lot's of worry from lot's of sources. Here's one that compares China to 2008 U.S. Is it really that bad?
The next seven articles are about employment and wages followed by two articles on the true condition of the Chinese economy and credit markets and concluding with the most ominous deflation/recession warning we have read in years.
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