Investors should be worried that stocks are being supported by record amounts of margin debt. These kinds of loans secured against stocks have often proved dangerous in a downturn because when share prices fall borrowers are forced to sell. Source
American International Group poses less of a threat to financial stability because it shrank its assets by more than $500 billion, Federal Reserve Chair Janet Yellen said on Monday in explaining why she voted in favor of releasing the company from stricter oversight. Her comments...
Lack of volatility helped drive valuations higher but when the dip-buying strategy fails, there could be a wipeout. Source
The Federal Reserve's point-person on Wall Street appealed to Congress on Monday to "do no harm" as it considers slicing back regulations put in place to protect the U.S. economy in the wake of the financial crisis. New York Fed President William Dudley, who announced...
Supply was down 6.4 percent from a year ago. Housing inventory has declined on a year-on-year basis for more than two years. The median house price was $245,100 in September, a 4.2 percent rise from a year ago, reflecting the shortage of homes on the...
China has the world’s largest market for electric cars and wants its companies to dominate globally when it comes to the batteries that power these vehicles. That makes the initial public offering of a turbocharged player at the center of that effort well worth watching. Source
The economy would have no problem weathering a temporary government shutdown. That doesn’t mean investors should be complacent about one. With congressional Republican leaders struggling to round up the support they need for a stopgap funding bill and Democrats preparing to withhold support...
Disruptions from a pair of hurricanes could prove to be a drag on job growth data for last month, the chief U.S. economist at Barclays told CNBC on Wednesday. "The average hurricane since the 1980s takes about 50,000 off of employment growth," Michael Gapen said...
One state is trying to do something about rising drug costs. In a little-noticed request last week, the Massachusetts Medicaid system said it wanted the right to refuse to reimburse for some drugs that have “limited or inadequate clinical efficacy.” And it gives...