Go Read
Articles you should read today.
There's more volatility underneath the surface in markets right now then you might expect from just looking at the major averages as bond yields have backed up. That also means that the prices of the bonds have declined. Go read over at Zerohedge.com, "Volatility Explodes: China Crashes Then Soars, Bund Tumble Continues With Yield Touching 0.99%". Also see Bloombergbusiness.com, "Bond Rout Wipes out 2015 Gains."
Consensus has been over the years that the Wall Street bailouts and all the stimulus we've done mostly benefited the wealthy. Over at the Washington Post, Robert Samuelson has a different view. Go read the article "The Fed: Welfare for the Wealthy?" Here's a synopsis of the three reasons why all that stimulus also helped the middle class:
1. First, the bond-buying strengthened the economic recovery by lowering interest rates and creating jobs in interest-sensitive sectors such as housing and manufacturing.
2. Back-of-the-envelope estimates exaggerate the Fed's {Federal Reserve's} effects on stock prices.
3. Lower interest rates also boosted the wealth of the middle class, with the largest effects on home prices.
Problems around the World:
The Guardian: "How the US Fueled the Rise of ISIS in Syria and Iraq."
posted by CR English at 8:17 AM
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