WASHINGTON | By Jeff Madrick via The Next New Deal | This latest outrage is just another symptom of an extreme anti-government ideology with roots dating back to the 1970s, the author believes. And sequestration is undermining what could have been a strong recovery by now.
NEW YORK | By Ana Fuentes | A game of political chicken between Republicans and Democrats ended in failure on Monday. The U.S. government is partially shutdown, which may cost the economy as much as 1 billion a week. Check out who is affected and who isn’t. And bear in mind this is just an appetizer for the real havoc: the debt crush is announced for October 17.
MADRID | By Luis Arroyo |The clock is ticking: if Congress can’t agree to budget terms, parts of the federal government will shut down by Monday midnight. But markets have reacted differently than expected to this political pulse between Democrats and Republicans.
SAO PAULO | By Marcus Nunes | The ‘peddlers’ of fiscal stimulus who say monetary policy (the Fed) is powerless at the ZLB-LT, and the inflation “nutters” have both done a grave disservice.
LONDON | By Michael Gavin at Barclays | Today, we mainly remember the ‘Greenspan conundrum’ as a puzzle about the level of US interest rates in the several years leading up to the 2007-08 financial crisis. But the original conundrum was as much about the insensitivity of long-term interest rates to the tightening of monetary that began in mid-2004 as it was about the level of interest rates.
WASHINGTON | By Jeff Madrick via The Next New Deal | Wall Street has responded well to Summers’s withdrawal, but Main Street would also be better off without an inflation hawk leading the Federal Reserve.
By Johannes Müller (Deutsche Asset & Wealth Management) | Fed’s tapering will be the beginning of a normalization of financial markets. The U.S. central bank is beginning to lift the foot off the accelerator, but it is unlikely that Bernanke and company will imminently step on the brake.
NEW YORK | By Ana Fuentes | America’s economy is recovering at a slow but firm pace: mortgages, the car industry, consumption, all show better figures than last year. However, the last jobs report brings a huge problem on the table: teen unemployment is still too high. More than 10 million youth are unable to find full-time work, and that’s a ticking bomb, experts warn.
NEW YORK | By Ana Fuentes | Barack Obama will give six interviews to U.S. media this Monday to build public support about an intervention in Syria. The White House is using its lobbying skills to make a case for an action that for some analysts could compromise the last good economic data.
WASHINGTON | By PABLO PARDO | With Barack Obama’s popularity decline, those who are taking the lead are prosecutors. The Justice Department is using techniques that had usually been the domain of criminal investigations to pursue crimes on Wall Street.