Econintersect: If you are worried about safekeeping for you cash and are worried that a bank failure where you could deposit it might result in a bail-in confiscation, the Japanese government has a deal for you; They will store your money for free for five years. You give them ¥1 million (U.S. $8,403.36) today and they give you a guarantee to return that ¥1 million in five years. That guarantee is called a five-year Japanese government bond. On 12 January 2015 the yield on that security dropped from 0.006% to 0.000%.
In the development of new drugs, taking something from nature and modifying it has been a successful tactic employed by medicinal chemists for years. Now, with the help of nanotechnology, researchers are turning once-discarded drug candidates into usable drugs.
from the New York Fed
The Federal Reserve Bank of New York today released results from its December 2014 Survey of Consumer Expectations (SCE), which provides insight into Americans’ views on inflation, prices, the labor market and household finance. While median consumer inflation expectations at both short and long term horizons remained unchanged from the previous month, the cross-sectional distribution of consumer inflation shifted considerably downwards. Median earnings growth expectations, while lower than in the previous month, remain above the average in the first eleven months of 2014. Expected job loss is at its lowest level since the inception of the survey in June 2013.
Higher Education, Wages, and Polarization. U.S. Labor Market Favors Workers Who Hold a Graduate Degree.
by Rob Valletta - FRBSF Economic Letter, Federal Reserve Bank of San Francisco
The earnings gap between people with a college degree and those with no education beyond high school has been growing since the late 1970s. Since 2000, however, the gap has grown more for those who have earned a post-graduate degree as well. The divergence between workers with college degrees and those with graduate degrees may be one manifestation of rising labor market polarization, which benefits those earning the highest and the lowest wages relatively more than those in the middle of the wage distribution.
January 12th, 2015
from the Securities and Exchange Commission
The Securities and Exchange Commission today announced that two exchanges formerly owned by Direct Edge Holdings and since acquired by BATS Global Markets have agreed to pay a $14 million penalty to settle charges that their rules failed to accurately describe the order types being used on the exchanges. The penalty is the SEC’s largest against a national securities exchange, and the case is the SEC’s first principally focusing on stock exchange order types.