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 included.
GBP/USD Resumes Uptrend after One-day Setback (James Hyercyzk, FX Empire) The U.S. dollar staged a strong end-of-week rally but that was not enough to derail the continued advance of GBP/USD. The pair has seen a gain of 3.5% over the past three months and 13.9% over 16 months.
What's The Matter With Paul Krugman? (Stephen Moore, Investor's Business Daily) Hat tip to Joe Gordon. The case of Kansas was selected by Prof. Krugman to support his argument against tax cuts. Moore accuses him of cherrypicking. Moore points out that many low tax states are growing while many high tax states are not.
58% of Jobs Created in 2014 Pay Over $24 an Hour (Barry Ritholtz, The Big Picture) For a 40 hour week $24/hour is $960 a week or about $50k per year. Now that is approximately the same as median household income. So more than half the jobs exceeded and less than half fell under the median household income. New jobs are not paying slightly better than old jobs.
There are 10 articles discussed today 'behind the wall'.
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Not only are there not enough first time home buyers in the market but I am seeing financial stress among move-up buyers. This year, like I saw with first time home buyers 2 years ago, are having to stretch above their comfort payment level. This doesn't mean they don't qualify for a home loan, but the total payment is more than they anticipated. However, for 2014 move-up buyers were in the market. It will be interesting to see what happens next year.
ECB's Lautenschlaeger does not see bond-buying: paper (Reuters, Investing.com) European Central Bank executive board member Sabine Lautenschlaeger said she does not see the ECB embarking on a bond-buying spree in the near future, according to a German newspaper report. She said a large-scale purchase of bonds would only be an option if the ECB faced extraordinary risks, adding: "I really don't see that right now".
The incapable soothsayers (Salil Mehta, Statistical Ideas) Salil Mehta has contributed to GEI. Statistical analysis proves the the Fed has forecast unemployment six months after it happened.
Dow hits 17,000 (Daniel P. Collins, Futures Magazine) A journey down memory lane with a look at what was happening at each the Dow's 17 thousand point milestones.
The Myth of America’s Golden Age (Joseph Stiglitz, Politico) Stiglitz says that the proof that trickle down doesn't work has been delivered by the failure of Barack Obama's bail out the banks policy (rather than homeowners).
Click on map for larger image at Vizualizing Economics.
Harnessing Solar in China (Teresa Kong, Matthews Asia, Advisor Perspectives) Boots on the ground research in China finds that country seriously lags the U.S. in facilitating local solar power connection to the grid.
Monopoly (Frances Coppola, Pieria) Frances Coppola has contributed to GEI. The board game is the ultimate demonstration of the collapse end game of income inequality.
The Bank of Japan's QE program diverges sharply from other central banks (Walter Kurtz, Sober Look) Japan is operating the Starship Enterprise of central banking. Many seem unaware of just how large Japan's QE program has been relative to other central banks. While the Fed, the ECB, and the BOE have roughly converged to the same level (as a proportion of their GDP), the Bank of Japan's balance sheet is more than double that of its counterparts abroad.
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