阅后即焚(七)

John Taylor: Fed policy is a drag on Economy

  • kept extending the near-zero federal funds rate and it will remain in the place for several more years.
  • search for higher yields: take on questionable investments; bank roll over rather than write off bad loans;
  • foreign central banks follow the easy money policy — global increase in money risks commodity booms and busts;
  • (respond) increase aggregate demand; but micro analysis shows not.
  • Fed is imposing an interest-rate ceiling on the long-term market by saying it will keep the short rate unusually low —  reduce the supply of credit, reduce aggregate demand and increase unemployment;

The web-deprived study on McDonald’s

  • McDonald’s, Starbucks, free access to wi-fi, for students who cannot access internet connection at home to do assignment;
  • “21-century skills”. but school close at 5, public library close at 6.
  • high speed internet and advanced wireless network aren’t subject to rules such as the ones that required carriers to make traditional telephone service available to everyone;
  • “No one disagrees with the concept of 100% connectivity, the rub is how do you get there in a way that doesn’t distort the market.”

Adviser Optimism Raises Cautionary Signal

  • Investors Intelligence Advisory Sentiment Index: determine market risks by measuring the level of optimism or pessimism;
  • Currently, the index is showing a strong level of optimism among advisers.
  • has to be cautious — too many people are ignoring the short-term risks inherent in stocks.

How the digital age is turning the financial planning industry upside down

  • the past: large firm their own proprietary solutions; independent firms and advisers struggles; 
  • changes: increase in bandwidth; the emergence of Application Programming Interfaces (APIs), software packages able to “talk” to one another;
  • impact: no longer good to build their own proprietary software; advisers now have more flexibility to change which firms they affiliate with; 
  • the rise of the “middleware” programmers and integrators specialized in the software that is built for advisory firms. like designing “Apps”;

Home Prices Help Advance Economy’s Slow Recovery

  • rose 5.5% from November a year ago;
  • Case-Shiller report track 20 metropolitan cities, only NYC shows decline; Phoenix 22.8%, San Francisco 12.7%;
  • in 2013, rising taxes and dysfunction in Washington make less optimistic;
  • Home ownership rate 65.4% from 65.5% last year; but 69.2% in 2005.

CNN makes flurry of changes

  • Managing director Mark Whitaker stepping down, replaced by Jeff Zucker;
  • past: focus on hard news, while other rivals more opinionated;
  • now pull back international reporting and focus more on stories of people talk about on any given day;
  • (Zucker) “News is more than just about politics and war.”

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