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  • Finance 0

    The Truth About Bitcoin

    It’s been an interesting few weeks, watching bitcoin’s rollercoaster ride as it rises to valuations over $4,000 and then dives to almost $2,000 before rising again to near $6,000. This is for an asset that just a year ago you could have purchased for a few hundred dollars. The rise of cryptocurrency valuations is confusing and fuelled by everything from China and Russia trying to ban the asset, to forks that offer you free cash and coins. It is for these reasons that Jamie Dimon (CEO, JP Morgan) calls bitcoin a fraud … … and Gottfried Leibbrandt (CEO, SWIFT) gets a big laugh from bankers by talking about bitcoin whilst showing tulip...
    On October 18, 2017 / By
  • Finance 0

    A Housing Teaser

    Here is something I have been working on for the last month. As it happens, last week Kevin Drum posted some aspects of the same data. House prices have exceeded by a substantial margin median household income: But the monthly mortgage payments have not: This is because, while the prices of houses have increased, mortgage interest rates have decreased over the same period. So, saving for the down payment is considerably more difficult (unless, e.g., parents are helping out), but once the house is bought, the monthly carrying cost for living in the house really hasn’t gone up at all.  What’s missing in this discussion is comparing both h...
    On October 18, 2017 / By
  • Finance 0

    GBP/USD Daily Analysis – Wednesday, October 18

    GBP/USD broke below the rising trend line on its 4-hour chart, indicating that the short term uptrend from 1.3027 had completed at 1.3337 already. Deeper decline would likely be seen and next target would be at 1.3121. Below this level could trigger further bearish movement towards the bullish trend line on the daily chart. Near term resistance is at 1.3230, only break above this level could bring price back to test 1.3337 resistance. Above this level could signal resumption of the uptrend from 1.3027, then the following bullish move could take price to next resistance level at 1.3455.  ...
    On October 18, 2017 / By
  • Finance 0

    Trump Watch: President To Interview Janet Yellen As Final Decision Nears On Fed Chair

    U.S. President Donald Trump will interview Janet Yellen this week about potentially reprising her role as Federal Reserve Chair, various media outlets reported on Monday. Janet Yellen became the first woman to head the all-powerful Fed. Her first term is scheduled to end in February. Unlike her predecessor Ben Bernanke, Yellen’s second term is far from guaranteed under Trump. The president has been highly critical of both Yellen and the Fed’s policy-setting board. While campaigning, Trump accused the Fed of doing Barack Obama’s dirty work, with Yellen “doing political things” to keep interest rates artificially low. “When they rai...
    On October 18, 2017 / By
  • Finance 0

    Sensex Trades On A Volatile Note; Bank Stocks Top Losers

    After opening the day in red, Share markets in India have traded on a volatile note and are presently trading below the dotted line. Sectoral indices are trading on a mixed note, with stocks in the capital goods sector and stocks in the realty sector witnessing maximum buying interest, while stocks in the banking sector are leading the losses. The BSE Sensex is up by 14 points (up 0.1%) and the NSE Nifty is trading down by 16 points (down 0.1%). Meanwhile, the BSE Mid Cap index is trading up by 0.2%, while the BSE Small Cap index is trading up by 0.3%. The rupee is trading at 64.90 to the US$. In news from stocks in the IT se...
    On October 18, 2017 / By
  • Finance 0

    ECB Worried Who Will Buy Government Debt If They Stop?

    According to RELIABLE sources behind the curtain, the crisis in Spain led to a significant amount of selling Spanish debt to the European Central Bank (ECB) which has meanwhile swelled to 2.3 trillion euros. There are problems now emerging in Italy and the appetite for government debt at low rates is not as strong as being portrayed. The ECB’s expansive economic stimulus package of buying government debt is NOT going to be stopped so easily.  At the next ECB meeting on October 26th, the bond-buying program is most likely going to continue and at best they might claim to extend the bond purchase program with a modest reduction in volu...
    On October 18, 2017 / By
  • Finance 0

    UK Wages Rise To 2.2% – GBP/USD Follows

    Wages are up 2.2% y/y in the UK in August, better than expected and with an upwards revision for July which is now 2.2% instead of 2.1%. Excluding bonuses, wages are up 2.1%, also above 2% predicted. The unemployment rate remains at 4.3% as expected. A small disappointment comes from the Claimant Count Change for September: a rise of 1.7K, slightly above 1K predicted.  All in all, this is good news. Higher wages should lead to higher inflation and support higher interest rates. GBP/USD is a bit higher, hitting 1.32. It is important to note that the pound was ticking higher already ahead of the release and remains entrenched in a relatively ...
    On October 18, 2017 / By
  • Finance 0

    U.S. Poverty Rate Declined In 2016

    While you may not have noticed it in your home state or city, the official poverty rate in the United States has actually managed to recover back to pre-recession levels back in 2016. According to a report from Investopedia, using data from the US Census Bureau, the poverty rate in the United States fell for the second straight year in 2016 while median income rose to an all-time high of $59,000 as the economy made up ground lost during the 2007-2009 recession, federal government data released on Tuesday showed. Median household income rose 3.2% from $57,200 a year earlier, according to a U.S. Census Bureau report. It surpassed the previou...
    On October 18, 2017 / By
  • Finance 0

    Airbus Takes On Boeing By Striking Deal For Bombardier Ownership Stake

    Boeing’s battle to crush Bombardier has encountered an unexpected obstacle. Bloomberg reports that Airbus SE has agreed to acquire a majority stake in Bombardier Inc.’s C Series program, which the Commerce Department slapped with a 300% tariff it ruled in Boeing’s favor in a complaint alleging Bombardier had benefited from anti-competitive government subsidies. Under the terms of the deal, Airbus won’t pay a dime up front for the C-Series, but will begin assembling the technologically advanced by poor-selling jetliner in the US in what Bloomberg said could be an effort to circumvent the tariffs.Airbus is adding another final a...
    On October 18, 2017 / By
  • Finance 0

    Your Stake In The $22 Billion Dollar Cannabis Industry

    Is now the right time to invest in the Cannabis Industry? As of this year, cannabis is legal in 29 states plus the District of Columbia, and the number is rising. The Cannabis Stock Index is up 26.4% month-to-date. ~30,000 new cannabis companies have entered the space this year. There is a noticeable trend here that seems to be pointing towards, yes. The Spark Five years ago, Colorado and Washington legalized the adult use of marijuana, sparking what is now one of the fastest growing industries in the U.S. The industry has since been growing at a 16% compounded annual growth rate. By the end of 2020, it’s projected to double in size from $2...
    On October 18, 2017 / By