According to a new Gallup poll, 72 percent of Americans say that big government is a greater threat to the U.S. in the future than big business or big labor, a record high in the half century that Gallup has been asking the question. The previous high for big government was 65 percent in 1999 and 2000:
Ben Bernanke, in his final press conference as chairman of the Federal Reserve, announced today that the central bank would be tapering asset purchases to $75 billion a month, down from $85 billion, which has been widely seen as a modest first step toward reducing the Fed’s outsized role in financial markets and the economy.
The move caught many economists by surprise — a USA Today survey found that most economists polled said the Fed would maintain its current levels of quantitative easing, as the policy is known, before trimming down in January.
After the financial crisis in 2008, spooked investors started piling into low-risk assets like Treasuries, driving prices dramatically higher. The Fed’s aim in buying these assets was to take safe investments like Treasuries off the market, in order to encourage investors to take more risk and invest in higher-yielding and more productive ventures like stocks, equipment, and new employees.
The ultimate objective was more jobs, and more economic activity.
Renewables will be the fastest growing source of energy between now and 2040, according to new projections from the Energy Information Administration.
The EIA forecasts that from 2012 to 2040, solar, wind, and geothermal production will nearly double, rising 97 percent. The next closest projection is for natural gas, which is expected to grow 56 percent.
Of course, renewables make up a small proportion of global power generation. So even after all that growth, renewables are estimated to account for a measly 3.8 percent of total energy production in 2040, compared with 38 percent for natural gas.
But this is actually an extremely conservative estimate. Renewables — and especially solar — aren’t really like other energy sources. Non-renewables are energy-rich fuels, but there is only a finite supply in the ground. This means that prices are unpredictable and subject to large spikes that badly damage the economy, as occurred in the 1970s and the 2000s.
J.P. Morgan Chase is nearing a settlement with federal regulators over the bank’s ties to convicted fraudster Bernie Madoff, reports The New York Times. The deal would involve penalties of up to $2 billion dollars and a rare criminal action. The government intends to use the money to compensate Madoff’s victims.
For two decades before his arrest, Madoff had banked with J.P. Morgan — and apparently laundered up to $76 billion through the bank. Employees at the bank had raised concerns about Madoff’s business. In 2006, a J.P. Morgan employee wrote after studying some of Mr. Madoff’s trading records that “I do have a few concerns and questions,” and expressed worry that Madoff would not disclose exactly which trades he had made. Madoff’s company turned out to be an elaborate ponzi scheme that stole an estimated $18 billion from clients; it collapsed in 2008.
Is it fair to blame J.P. Morgan for the activities of Madoff? Do banks have a responsibility to know if their clients are involved in criminal activities? I think so — banks should have strong checks and balances to prevent fraud and money laundering, because if they don’t then criminals like Madoff can get away with it for years and years. According to Robert Lenzner of Forbes, “J.P. Morgan never reported to the Treasury or the Federal Reserve a huge cache of checks going back and forth for seven years between Madoff’s Investment Account 703 and Bank Customer Number One, belonging to real estate developer Norman Levy, who died in 2005.”
By agreeing to pay the fine and the government’s rebuke, J.P. Morgan is admitting a failure of oversight. But it’s not as if J.P. Morgan is the only one to blame. Others on Wall Street had expressed concern about Madoff’s business much earlier.
Increased gender and racial diversity in the labor market since the 1960s has been a key factor in America’s booming growth in productivity, suggests a new study by the National Bureau of Economic Research.
In 1960, 94 percent of doctors and lawyers were white men. By 2008, this was just 62 percent. Similar changes have occurred across professions throughout the U.S. economy during the last 50 years.
A half century ago, being a white man was clearly considered an advantage (if not a requirement) for employment in certain professions. Things have obviously changed since, though subconscious attitudes in this vein surely still persist.
Unfortunately — or perhaps fortunately — we’re not anticipating flying saucers on the White House lawn anytime soon. Instead, scientists discovered a (relatively) easily-accessible source of hydrogen and oxygen — which together make water, one of the most basic ingredients for life — on one of Jupiter’s moons.
There is already lots and lots of evidence for the existence of both liquid and frozen water in other parts of our solar system. Frozen water is abundant in asteroids. In 2009, huge amounts of frozen water were found on Earth’s moon. Some scientists suggest that Mars’ surface has been shaped by the flow of liquid water, and NASA’s Curiosity rover found frozen water in soil samples on Mars just this year. And back in 2000, the Galileo probe found evidence of water on Jupiter’s moons Ganymede and Europa — and scientists believe that liquid oceans of water are trapped beneath the the moons’ frozen surfaces.
The Volcker Rule was originally proposed to end the problem of banks needing taxpayer bailouts. Paul Volcker, the former chairman of the Federal Reserve, proposed that commercial banks using customer deposits to trade — a practice known as proprietary trading — played a key role in the financial crisis that began in 2007.
Five former Secretaries of the Treasury — W. Michael Blumenthal, Nicholas Brady, Paul O’Neill, George Shultz, and John Snow — endorsed the Volcker Rule in an open letter to the Wall Street Journal, writing that banks “should not engage in essentially speculative activity unrelated to essential bank services.”
The Volcker Rule was signed into law as part of the Dodd–Frank Wall Street Reform and Consumer Protection Act in July of 2010, but its implementation has been delayed until yesterday when it finally received approval from the five (!) regulatory agencies that will enforce it — the Federal Reserve, the Federal Deposit Insurance Corporation, the Office of the Comptroller of the Currency, the Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC).