Jobs Report and Fixing the Crumbling Market

Another month, another sign that the job market remains unchangingly, distressingly stuck. The official unemployment rate according to just-released figures from the Bureau of Labor Statistics is at 9.1%, but that fails to capture the weakness of the overall employment picture. The headline number has been essentially unchanged since April – and indeed there has been almost no net job creation for the past year.

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Alan Krueger Appointed Economic Advisers Chair: Don’t Expect a Miracle

After months of bleeding economic advisers, President Obama just nominated Princeton economics professor Alan Krueger to be the chairman of the Council of Economic Advisers. Krueger is no stranger to the Obama administration, having served as assistant secretary of the Treasury until late last year, when he returned to Princeton in order to retain his tenured status.

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Ben Bernanke's August 26 Speech Shows Out-of-Touch Economic Worldview

No Ben to the rescue. The hugely anticipated speech by the Fed chairman proved to be remarkably vanilla, which should have surprised no one. Bernanke reiterated a series of themes that have been well iterated in recent weeks: that growth has stalled but is poised to rebound in the second half, that housing remains a drag on the slow economic recovery, that unemployment is disturbingly and dangerously high, and that better government fiscal policy to address short-term economic weakness and long-term deficits is essential.

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Obama Economic Strategy Targets Jobs & Growth, but Aims at 2012 Reelection

Yet another day in the yo-yo chronicles. The markets tanked once again, reverting to their extreme behavior of last week; European banks groaned under the presumed weight of unresolved debt burdens; and American economic data, ranging from the Philadelphia Fed’s manufacturing survey to jobless claims, suggested that, yes, Virginia, there may be a Santa Claus, but his bag this year is shaping up as decidedly thin.

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Flash Crash: Markets No Longer Reflect Economic Reality

Over the past 48 hours, global markets have lived a life cycle, from panic and fear through uncertainty and confusion, and then, finally, euphoria. The individuals and machines placing the trades have been along for the ride, and if you stepped away for lunch or coffee, you risked exiting the movie at a crucial plot point, asking distracted friends and colleagues, “What just happened?”

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Flash Crash: Markets No Longer Reflect Economic Reality

Over the past 48 hours, global markets have lived a life cycle, from panic and fear through uncertainty and confusion, and then, finally, euphoria. The individuals and machines placing the trades have been along for the ride, and if you stepped away for lunch or coffee, you risked exiting the movie at a crucial plot point, asking distracted friends and colleagues, “What just happened?”

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Stock Markets: Great Opinion Reads on the Mayhem, Obama, S&P Rating

Well, that was a bomb. As President Obama delivered his speech—nearly an hour after scheduled—the networks showed the Dow as he spoke. It wasn’t pretty—it went down, and down, and down. So why did his speech fail to reassure the market? Business Insider’s Joe Weisenthal speculates that Obama was conflating the market troubles with the S&P downgrade, when they’re actually two separate problems. 

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Markets Spooked by S&P Downgrade but Have No Alternative to U.S.-led System

And the beat goes on. Global markets have begun to digest the fallout from Standard & Poor’s scurrilous downgrade of American sovereign debt, and equity markets in Asia and Europe opened lower. Odd pockets of perceived safety rallied, like Swiss francs, and of course gold soared, as investors attempted to win the game of musical chairs on the deck of the Titanic.

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Wall Street Markets Collapse After Jobs Report and Double-Dip Recession Fears

U.S. stocks finished with mixed gains and losses on Friday, as investors responded to progress in today's jobs report and in the eurozone's debt crisis. The Dow rose 61 points as investors learned that Italy will speed up austerity measures. Prime Minister Silvio Berlusconi pledged that Italy would balance its budget by 2013, one year earlier than originally planned. 

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Derivatives to the Rescue? How ‘Betting Against’ the U.S. Could Prevent A Default Crisis

Wednesday’s plunge in the markets signaled that the impasse over the debt ceiling ,if it continues, will eventually trigger a substantial market sell-off. That belief itself should have been a warning sign; when investors dismiss what is known as “tail risk,” only trouble ensues.

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