Why free trade and globalization aren’t quite the same thing On what grounds can we, as free trade advocates, assert that globalization can harm the country? A straightforward explanation suffices: In standard analyses of trade, economists usually assign fixed values to a country’s productive capabilities and define trade as the exchange of the goods and services, with each country supplying those items in which its productive capabilities are relatively greatest. With this definition, trade can easily be shown to offer benefits to both parties. Economic analysis repeatedly bears this out. Hence, economists emphatically reject tariffs and other forms of protectionism as impediments to those benefits. We accept this conclusion for the assumed scenario. But when productive capabilities are changing, not fixed, the world enters a whole new ball game. As long shown by many economists – the latest being Nobel Prize winner Paul Samuelson – the end result of that productivity change, even after the period of adjustment, may be better for one’s country or it may be worse, depending on circumstances. More concretely, when the United States trades semiconductors for Asian t-shirts, for example, that is trade in the narrow sense. And we concur with the most basic theoretical conclusion that this exchange clearly benefits both countries. But when Intel properly pursues the interests of its shareholders by building a multi-billion dollar semiconductor plant in China rather than the United States, a shift in comparative productive capability suddenly occurs. Globalization is not simply free trade; it is trade plus shifting productivity. We have not sent China consumer goods, but the capability to produce more effectively. http://business.time.com/2008/07/02/why_free_trade_and_globalizati/
Greenspan says this the worse and said it was worse than the markets days of 1987.... Hmmmmm http://www.cnbc.com/2016/06/24/alan...k-from-eu-is-just-the-tip-of-the-iceberg.html
Right on...this is going to set the stage for more exits to come. Once 28...soon to be 27.....26.....25.....24....23...22.....21....20
What this British exit could do to the US: The United Kingdom shocked the world last night when it voted to leave the European Union, contrary to what polls leading up to the vote were predicting. The effect on the British economy will be widespread, but will the turmoil wash up on American shores? Here are some guidelines for how the American economy will weather this storm, according to Torsten Slok, Chief International Economist with Deustche Bank Securities, who points to the Federal Reserve’s model of the U.S. economy combined with predictions for how financial markets will continue to digest Brexit: A 10% appreciation in the dollar will cut U.S. GDP by 0.4% after one year; An increase in BBB yields of 1%—as investors move away from riskier corporate borrowers—will lower GDP by 0.2%; A sustained 20% decline in the S&P 500—which may be the result of increased volatility following the vote—lowers GDP by 0.2% and raises the unemployment rate by 0.1%; and A 100 basis-point decline in the 10-year rate U.S. Treasury rate—as investors flee to the safe government bonds—will increase GDP by 0.4%. Continued below https://www.yahoo.com/finance/news/brexit-hit-u-economy-155131514.html
Peter Schiff just said that BREXIT was a gift for yellen and fed friends and he is a 1000% right on that....as I said they now even have another excuse not to raise rates...nif anything the next move is taking back the quarter rate hike from December and bringing rates NEGATIVE .....go fed go hahaha http://www.cnbc.com/2016/06/25/peter-schiff-brexit-is-a-gift-for-janet-yellens-fed-policy.html
Markets still feel "on-edge". The Friday [night in the US] low in ES is somewhat arbitrary since it was a first percent down limit trigger. I would be careful to treat it as "support".
Ha-ha...they want to redo the votes over again....haha... http://www.cnbc.com/2016/06/26/uk-v...em-want-another-bite-at-the-brexit-apple.html
This guy at the NYSE is saying to himself: these brits just want to have sex with all the people from the other 27 countries they can't freely travel to anymore. I just want my stocks to stop going down. Here is what the youngsters are saying: A quick note on the first three tragedies. Firstly, it was the working classes who voted for us to leave because they were economically disregarded, and it is they who will suffer the most in the short term. They have merely swapped one distant and unreachable elite for another. Secondly, the younger generation has lost the right to live and work in 27 other countries. We will never know the full extent of the lost opportunities, friendships, marriages and experiences we will be denied. Freedom of movement was taken away by our parents, uncles, and grandparents in a parting blow to a generation that was already drowning in the debts of our predecessors. Thirdly and perhaps most significantly, we now live in a post-factual democracy. When the facts met the myths they were as useless as bullets bouncing off the bodies of aliens in a HG Wells novel. When Michael Gove said, 'The British people are sick of experts,' he was right. But can anybody tell me the last time a prevailing culture of anti-intellectualism has led to anything other than bigotry? http://www.cnbc.com/2016/06/24/this...left-the-uks-young-feeling-so-devastated.html
The instability is not to be underestimated going forward: Fallout From European Turmoil Over Brexit The Obama administration is rushing to help contain the political and economic turmoil roiling Europe in the aftermath of the U.K.’s surprise decision to leave the European Union, with top U.S. officials seeking to ease tensions between European and British leaders over the timing of the divorce. As the U.K.’s main political parties struggled to address a leadership crisis, U.S. Secretary of State John Kerry announced plans to visit Brussels and London from Rome on Monday, attempting to gauge, and potentially tamp down, reactions among leaders across the world’s largest trading bloc. The trip is an opportunity to understand how the transition will occur -- something U.K. officials are still figuring out --and stress U.S. commitments to the U.K. and EU, a senior administration official said. The blitz from U.S. officials come amid new uncertainty over the mechanics of Brexit, which has roiled global financial markets. European leaders this weekend sent new signals they’re eager to consummate the departure of the U.K. as a way to consolidate support for the union and ward off similar populist uprisings in their own countries. Among those working the phones have been Treasury Secretary Jacob J. Lew, who spoke with British Chancellor of the Exchequer George Osborne, Chinese Vice Premier Wang Yang, and other financial market participants, the administration official said. Secretary of Defense Ashton Carter spoke to his U.K. counterpart Michael Fallon, and Deputy National Security Advisor for International Economics, Wally Adeyemo, has been in contact with G7 and G20 officials. U.S. Trade Representative Michael Froman and Cecilia Malmstrom, the European Commissioner for Trade, will meet in Washington. Mass Resignations In London, leadership challenges in the Conservative and Labor parties have created new doubts about the capacity of the U.K. government to execute the departure in an orderly way, even as some European officials push for “divorce” proceedings to begin without delay. U.K. Prime Minister David Cameron said the process would begin with a new government in October.... http://www.bloomberg.com/politics/a...ain-fallout-from-european-turmoil-over-brexit