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- Photo Gallery: 10 Malls with Largest Loan Exposures to Sears and J.C. Penney | National Real Estate Investor
You’ve got to feel for the mall owners whose centers feature both Sears and J.C. Penney as anchors. …
Research put together by Morningstar Credit Ratings LLC found that there are at least 108 malls around the country where Sears and J.C. Penney both serve as major tenants ….
- Wage rigidity and the economic wars in the United States (3 charts) | Real-World Economics Review Blog
This article is short and clear for such a topic.
The issue of the “upward real rigidity of wages” raises a whole set of different questions: about firms’ reluctance to increase real wages, workers’ inability to demand higher real wages, and thus workers’ declining share of the wealth they produce.
- Fed’s Fisher warns of potential U.S. housing bubble, MBS buys | Reuters
(Reuters) – A top Federal Reserve official said on Thursday he is seeing fresh signs of a U.S. “housing bubble” and warned about the central bank’s ongoing purchases of mortgage-based bonds.
“I’m beginning to see signs not just in my district but across the country that we are entering, once again, a housing bubble,” Dallas Fed President Richard Fisher told reporters after a speech in New York. “So that leads me … to be very cautious about our mortgage-backed securities purchase program.”
A mortgage-market bubble in part caused the 2007-2009 financial crisis and Great Recession from which the world’s largest economy is still recovering. In response, the Fed has depressed interest rates and is buying $85 billion in assets each month, including $40 billion in mortgage-backed securities (MBS).
Fisher, a vocal hawk on monetary policy, repeated he would not support a reduction in the quantitative easing (QE) program at a Fed meeting later this month in large part because of the fiscal “mess” in Washington.
“As long as inflationary expectations are held at bay, we can fully open the monetary throttle in an effort to deliver on the mandate Congress gave us to help achieve full employment,” Fisher said.
“But it is for naught as long as the fiscal authorities are slamming on the brakes and leaving everyone in the dark as to how they will cure the fiscal mess they have wrought,” he said at the end of three days of speeches in New York that focused on fiscal threats to the economy and too-big banks.
When Fisher talks about fiscal policy, he wants more austerity. In our view, that would be counter-productive during an agonizing recovery. In fact, fiscal spending should be increased to aid the Fed in stimulating the economy.
We think the Fed has been underdoing it and should not be paying interest on excess reserves but should be encouraging lending to small- and medium-sized firms in order to increase full-time employment at living wages and better. Once the economy is revved up and churning out such jobs and with inflation in check, the Fed could then taper as much or as little as necessary to keep employment and wages up and inflation at a safe rate, not destroying pensions, etc.
- Alarm bells ring over China’s debt problem – Oct. 17, 2013
Economists say that, for now, China’s local government debt remains lower than that of many other advanced economies, such as the U.S., U.K., France, Japan, Germany and Spain. What is scary is the startling pace at which debt has accumulated.
China’s increase in local government debt is part of a larger issue — the explosion of credit as the country sought to fuel growth.