SU Economics Prof on Bloomberg

[Roger N]

Had a few spare minutes and turned on Bloomberg and there was Mary Lovely, SU economics professor talking about the China deal. Great to see the Syracuse S in the background

 

[Rocco]

Hopefully it was a positive sentiment... because it should be. Phase 2 will be key.

 

[HtownOrange]

^%$#@#! Now Beijing will be a home game, too!



(Apologies to the football only posters)

 

[LeMoyneCuse]

^%$#@#! Now Beijing will be a home game, too!



(Apologies to the football only posters)

Just because I refuse to engage with basketball only posters doesn't mean I don't follow Syracuse basketball.

 

[Crusty]

Hopefully it was a positive sentiment... because it should be. Phase 2 will be key.

Hard to really know with these agreements. Academia has loved all trade agreements. Could it be they get grants from business either directly or indirectly?
Only time will tell.

 

[Rocco]

Hard to really know with these agreements. Academia has loved all trade agreements. Could it be they get grants from business either directly or indirectly?
Only time will tell.

Whether material or not, the perception alone has gone a long way to easing the risk markets. IF a Phase 2 deal can materialize, the markets and economy will take the next leg higher.

Also, low interest rates and constant Fed liquidity injections fuel investment in real estate, equity markets and business startups. Leaving cash idle in the bank guarantees a low rate of return. This (low interest rates) has been the unrelenting tailwind behind the markets' move higher since the Great Recession.

 

[Crusty]

Whether material or not, the perception alone has gone a long way to easing the risk markets. IF a Phase 2 deal can materialize, the markets and economy will take the next leg higher.

Also, low interest rates and constant Fed liquidity injections fuel investment in real estate, equity markets and business startups. Leaving cash idle in the bank guarantees a low rate of return. This (low interest rates) has been the unrelenting tailwind behind the markets' move higher since the Great Recession.

I would argue that the risk in the markets is the enormous debt burden found everywhere. Consumer debt is $14 trillion, more than a trillion more than 2008.
Corporate debt is $10 trillion a record 48% of the economy.
Public debt is totally out of control

These debt bubbles never end well and this one won't either.
The Fed is following an expansive policy in the midst of a strong economy just when it should be reducing its balance sheet.
I am afraid we have seen this movie several times before.