Archives for Macro - Page 9
Selling Metal Concentrates: Payable Metal, Treatment Charges, Penalties, Terms of Sale An evergreen from 2013. It has information that is very difficult to obtain without fee. Therefore, it is reposted on numerous sites. The Investment Clock: Revisited An investment clock from Citi, one of the best I have seen. A…
In 2008 the New York Federal Reserve republished the comic book: “A Penny Saved – Why and how we save, and how savings helps the US economy”. The comic is worth a read, it concludes that the declining savings rate at the time was bad for the economy. That is,…
Economists spend a great deal of time developing concepts such as “market efficiency” and “rational behaviour”. Unfortunately, the models developed from such concepts only seem to work for economists. They don’t usually work for humans. Richard Thaler’s book, “The Winner’s Curse”, provides evidence that supports this dichotomy between economic thought…
The current economic debate in Australian political circles is “how to fix the deficit”. Australia’s deficit as a percentage of GDP is small compared with other OECD countries. But after years of reliance on overpriced commodity exports to China, the country should be in a better position than it is. Read…
Two weeks ago I wrote that Australia was “overbanked”, which poses a risk to the economy. Last week the Bank for International Settlement (“BIS”) released a research report entitled “Why does Financial Sector Growth Crowd out real Economic Growth?” This report references an earlier research paper “Reassessing the Impact of…
Last week I wrote about the unhealthy dominance of banks in the Australian economy. In fact, the financial sector is almost half of the market capitalisation of all listed companies. There are other issues in the Australian economy that could prove exceedingly risky on the downside. Australia’s deficit as a…