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- From Fox Business. https://t.co/WTYYhztbNg
- Legendary investor Jim Rogers said "The debt at the central bank has gone up 5 or 6 times in just 9 years. This has never happened before in recorded history. Interest rates have never been this low and yet they say it’s all going to be OK” http://bit.ly/2HZQyIc
- Fairway Holdings, a NY grocer that enjoyed a 33% pop on its 1st day of trading in 2013, filed for bankruptcy 3 years later. Food for thought
- #JanetYellen claims Fed policy helps the poor by pushing up house prices. But the poor don't own their homes, they pay rapidly rising rents!
- From Canada's Business News Network. http://bit.ly/1Rpc6xx
- Investors are way too optimistic that Pres. Trump and the GOP will fix the US economy. http://bit.ly/2hisdRX
- Excellent Comic Strip Explains Our Situation
- Stockman believes Reagan and Trump are in “diametrically different positions,” to create economic change: https://t.co/tpJGkY6hyC
- #Gold spiked above 1,000 pounds per ounce on Brexit vote. Too bad the BOE sold most of Britain's gold below 200 pounds back in 1999!
- Consumer sentiment unexpectedly fell in July to 93.1 from 93.3 in June. Analysts had expected the index to rise to 94.1.
Wednesday, January 6, 2016
I've heard sticky wages mentioned as a reason that markets don't adjust quickly, but aren't all prices sticky in the short term?
Wages are fundamentally a price of labor, and in the long run all prices adjust to the market. It would seem to me that any lag in wages falling due to worker discontent would also be seen in a lag in pay raises for inflation. Similarly adjusting the prices of finished goods up or down also has incentives for some delay, in consumer satisfaction and maximizing profits respectively. What is your view on this, and would you recommend anything to read on how markets adjust to inflation and deflation?