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 (and sometimes longer ones) 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.
The Cognitive Dissonance Election (Alex Tribou, Chloe Whiteaker and David Ingol, Bloomberg) The country that voted to give the Senate back to conservative Republicans also voted for more marijuana, fewer abortion restrictions, higher minimum wages, and more gambling.
Two Election Winners (David Kotok, The Big Picture) Kotok ( a wealth manager) says the two winners were the GINI coefficient and the labor participation rate. In the first case the GINI coefficient's upper levels voted and carried the day as the lower levels stayed home. Kotok also thinks the victims of the lower labor participation rate also stayed home providing a victory for that decline as well.
"This election outcome was about the divisions within our society. Those divisions will continue for the next two years. They are likely to be just as profound in 2016. That presidential race started in earnest last night."
FT: European Central Bank united on liquidity injection (Nikkei Asian Review) Mario Draghi now has unanimous support from the European Central Bank's governing council to inject €1 trillion to rescue the eurozone economy from stagnation. This removes concerns about growing divisions within the central bank. Draghi now has the support needed for a full scale QE action of bond-buying should the threat of deflation persist.
Articles about difficulties, conflicts and disease around the world
There are 11 articles discussed today 'behind the wall'.
Do not miss "Other Economics and Business Items of Note", the final section every day.
Please support all that we do at Global Economic Intersection with a subscription to our premium content 'behind the wall'.
There are between 75 and 100 articles reviewed most weeks. That is in addition to the 140-160 articles of free content we provide.
You get a full year for only $25.
Today's Dow Now in Second Place (Doug Short, Advisor Perspectives dshort.com) Doug Short contributes to GEI. Short has been following what he calls the "Sweet Sixteen" stock market recoveries since 1896. The current recovery and advance is now 1,427 market days old (~ 5 1/2 years) and has a larger gain at that juncture than 14 of the group of 16. The only market advance with better performance came in the roaring twenties, from 1921-1929.
TPPing APEC? (Jayant Menon, East Asia Forum) With the election of a Republican Senate in the U.S. greatly increasing the chances for the Trans Pacific Partnership to be ratified in that country, the possibility of the U.S. led free trade arrangement reaching fruition is greatly increased. That reduces the possibility that a China led FTAAP (Free Trade Agreement for the Asia-Pacific) for the area will come to pass.
USD/RUB - US Dollar Russian Ruble (Investing.com) The ruble is crashing, the ruble is crashing! Preceding article discusses the six-year (well , almost 6 years) decline of the ruble on 06 November, by 4.5% at the end of the day. But that is just part of a 13.5% decline in the past six days (first chart below), 38% in the last four months and almost 60% since January 2013.
While QE proved very effective in reinforcing the Fed's communication about short-term interest rates, there could be simpler ways to achieve the same outcome.
The U.S. experience with QE suggests it would be effective in Europe.
The Fed ended QE because it succeeded and that's good news for investors.
The living wage may cut poverty, but not by very much (Keith Bender, The Conversation) The living wage will help lift those who receive it out of poverty. But most of the poor are not employed (many are children, to begin with) and so mandating a living wage will not have a major impact on poverty. See also next article.
Free education for poor mums may help alleviate child poverty (Morag Treanor, The Conversation) Education across England is becoming increasingly unaffordable for lone parents and part-time students. Yet the quickest way to decrease poverty for children is to elevate the prospects of parents. In addition, the education of the child in poverty can only be supported by the example of a learning and achieving parent.
Asian shares slump, euro wallows near lows (Lisa Twaronite, Reuters) If the employment gains for the U.S. are strong (much above 240,000) Asian markets could turn around and head higher while the euro could head even lower. Much weaker than 240,000 and just the opposite could occur.
A Shanghai Break Out Could Be Huge For S&P 500 (Chris Kimble, Investing.com) Chris Kimble has contributed to GEI. Over the past 5+ years, The Shanghai Composite and the S&P 500 have been heading in different directions. The Shanghai index has lost more than 30% while the S&P 500 is up nearly 100%. Kimble suggests that the trends could change and he is suggesting a breakout from the current position for the Shanghai Composite could provide a bullish boost globally. See also the next article.
Econintersect wants your comments,
data and opinion on the articles posted. As the internet is a
"war zone" of trolls, hackers and spammers - Econintersect must balance its
defences against ease of commenting. We have joined with Livefyre
to manage our comment streams.
To comment, just click the "Sign In" button at the top-left corner of
the comment box below. You can create a commenting account using your
favorite social network such as Twitter, Facebook, Google+, LinkedIn or
Open ID - or open a Livefyre account using your email address.
Econintersect Behind the Wall
Print this page or create a PDF file of this page
The growing use of ad blocking software is creating a shortfall in covering our fixed expenses. Please consider a donation to Econintersect to allow continuing output of quality and balanced financial and economic news and analysis.
Take a look at what is going on inside of Econintersect.com