Tag Archives: Wealth Effect

China Obsessed With Wealth Effect

We discussed the increasing role of the “wealth effect” in U.S. monetary policy and a key driver of aggregate demand in out last post,  The Gold-Bond Correlation And Other Macro Observations. Nothing compared to China, however. Why are investments so … Continue reading

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America’s Bubble Dependent Economy

Interesting chart (which we marked up) from the JEC of the U.S. Congress illustrating household net worth as a percent personal income.   If that doesn’t look like a head and shoulders formation in the making, nothing does! The second chart … Continue reading

Posted in Economics, Employment, Politics, Wages | Tagged , , | 5 Comments

Jeremy Grantham CNBC Interview

Run don’t walk to CNBC’s extended interview with Jeremy Grantham, chief investment strategist at Grantham Mayo Van Otterloo (GMO).  Click here for the interview. He begins commenting on the Fed’s attempt to stimulate growth through the  “wealth effect,” noting that … Continue reading

Posted in BRICs, China, Commodities, Crude Oil, Currency, Equities, Gold, Monetary Policy, Policy, Whales | Tagged , , | 1 Comment