Six years after the beginning of the financial crisis of 2008–2009, the best that can be said about the public mood in the United States is that people are no longer catastrophically pessimistic. Instead, they are deeply pessimistic.
Read moreTop Risks and Ethical Decisions 2011
In this lively discussion, economist Daniel Altman, political scientist expert Ian Bremmer, and economic and political analyst Zachary Karabell present what each sees as the top risks for this year—and well beyond.
Read moreDouble Default
n July 30, Argentina failed to make a payment on some of its outstanding sovereign debt. Which means that for the second time since 2001, Argentina has done what is increasingly rare for sovereign countries in the world today: defaulted on its debt.
Read moreIn Looking at Stocks, Valuation Is Overvalued
Barely a day goes by of late without someone in the financial media announcing that equities are overvalued and primed for a fall. The most popular article on one of the most popular financial websites recently blared "U.S. stocks will be very disappointing for 10 years." The argument? That on multiple gauges, the current valuation of the market is higher than it was during the vast majority of market peaks in the past.
Read morePunitive Damages
ast week Citigroup finally reached a settlement with the U.S. Department of Justice over shoddy mortgage securities transactions in the years immediately before the 2008–2009 financial crisis. The bank agreed to pay $7 billion. That follows a $13 billion settlement paid last year by JPMorgan Chase & Co., and comes just as Bank of America is negotiating a settlement with the Justice Department sure to top $12 billion.
Read moreDon’t Kill the Export-Import Bank
ashington politics may be considerably calmer than in recent summers (remember the crisis and credit downgrade of 2011?). But there remain simmering tensions looking only for an appropriate outlet. Over the past few weeks, the normally quiet Export-Import Bank, whose existence is likely a mystery to the vast majority of citizens, has become that outlet.
Read moreHow India’s Economic Rise Could Bolster America’s Economy
In the coming weeks, the new government of Indian Prime Minister Narendra Modi—elected with a huge mandate and parliamentary majority in May—will release its first budget. Modi campaigned on a program of radically reforming the Indian economy, and this budget—and indeed his entire economic program—is hotly anticipated.
Read moreAdvice For Retail Investor
Zachary Karabell, Envestnet, gives his best advice to individual investors sitting on the sidelines. Kenny Polcari, O'Neil Securities; and CNBC's Bob Pisani and Dominic Chu provide insight.
Read moreThe Envestnet Edge - June, 2014
The Envestnet Edge from June, 2014
Read moreNo Sex, Please, We’re French
The government of France has just made what on the face of it appears to be a nonannouncement announcement: It will not include illegal drugs and prostitution in its official calculation of the country’s gross domestic product.
Read moreDon't Fear Risky Assets
We live in a world that emphasizes risk. That is true in general, but is especially so in the financial world. Since the financial crisis of 2008–2009, financial professionals have been acutely attuned to risk—and for good reason. Too many felt they were caught off-guard and unprepared by the near-implosion of five years ago. That in turn followed volatile periods from the Internet bubble of 1999 into early 2000, through the events of 9/11, and then a sharp market contraction until October 2002. After nearly 15 years of drama, it is hardly surprising that the financial world is primed for risk.
Read moreEasy Money
In the past few months, stock markets around the world have continued to rally modestly while bond yields around the world have continued their quiet decline. This is not what most expected, especially after December, when the Federal Reserve began paring back its hypereasy money policy of “quantitative easing.”
Read moreIn the Context of No Context
Twenty-five years ago, China made a choice. Rather than embrace the demands for greater political openness emanating from the students and protesters camped in Beijing’s Tiananmen Square, the leadership of the Communist Party decided to crush the protests with lethal force on June 4, 1989, leading to hundreds and perhaps thousands of deaths.
Read moreJunk Bonds Are Back!
Interest rates have been falling once again. The yield on the 10-year U.S. Treasury, which acts as a global benchmark of sorts, dipped as low as 2.44 percent last week, which is well below where rates began the year—and lower than at most points throughout the 20th century and into the first decade of the 21st.* At no point between 1961 and 2011 were rates as low as they are now, and for most of that time, the yield on the 10-year was above 6 percent.
Read moreSimon NYC 2014 Conference: Zachary Karabell
Zachary Karabell, Economic Analyst, Political Historian, and Award-Winning Author, on how important it is to take risks in order to grow and achieve success in any industry, and the surplus of capital versus income inequality.
Read moreDeflating Expectations
n a Reuters poll out this week, most economists say they are expecting more robust inflation this year, to the tune of 2 percent. The poll accurately reflects the plethora of emails from research firms in my inbox—a slowly building chorus predicting rising prices along with an uptick in overall economic activity.
Read moreAirbnb Will Hand Over “Anonymized” Records to New York Attorney General
Airbnb and the New York Attorney General's Office announced Wednesday that they had reached an agreement on a months-long conflict over Airbnb hosts in the state. Under the terms of the agreement, Airbnb will hand over "anonymized" data stripped of names, email addresses, apartment numbers, and other personally identifiable information. New York State Attorney General Eric Schneiderman will have a year to weed out hosts in violation of local laws and can require Airbnb to disclose the identities of those with suspicious activity.
Read moreEconomists Think That Wages Are Going to Rise This Year
The Opportunity in Flat Stock Markets
One obvious consequence of the information technology revolution has been an explosion of news and noise. We are bombarded daily with information and commentary that comes at us online, in print, and over various airwaves. This information overload is especially acute in the world of finance and financial markets.
Read moreAmerica, Meet Alibaba
The largest company you’ve never heard of is about to become a publicly traded U.S. company. After months of heated speculation within the financial world, Alibaba filed papers to list its shares in the United States. Its possible size? Somewhere between $150 billion and $200 billion dollars.
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