UK economy lost out on ‘4.5 trillion because of ‘too much finance’, study finds

‘Finance curse’ sucks talent and investment from other industries, costing ‘67,500 per person over the course of two decades, say researchers 

The UK has lost out on a ‘staggering’ ‘4.5 trillion over the course of two decades because of an oversized financial sector, a new study has found.

The ‘gravitational pull’ of the City of London has damaged economic growth by sucking talent and investment from other productive uses such as manufacturing and research while inflating asset prices, particularly property, a paper from The Sheffield Political Economy Research Institute concluded.

  • Publisher: The Independent
  • Date: 2018-10-05T18:51:10+01:00
  • Author: Ben Chapman
  • Twitter: @independent
  • Citation: Web link

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In case you are keeping track:

A decade of U.S. economic sluggishness may have just snapped back to normal

WASHINGTON (Reuters) – For a solid decade after the collapse of Lehman Brothers touched off a global financial crisis, there was good reason to think the U.S. economy remained broken, from skepticism about the health of the labor market to tepid economic growth and the moribund rate of interest paid on U.S. Treasury bonds.

In a heartbeat, that seemed to change this week, adding facts on the ground to Federal Reserve Chairman Jerome Powell’s glowing portrait of a historically rosy and extended period of super-low unemployment, modest inflation and steady growth.

It came through Inc’s (AMZN.O) move to a $15 minimum wage, possibly setting the bar for companies nationwide. It came through a jump in long-term bond yields that signaled faith the gears of growth will remain engaged for a record-long recovery.

  • Publisher: U.K.
  • Date: 2018-10-06T00:08:32+0000
  • Author: Howard Schneider
  • Twitter: @ReutersUK
  • Citation: Web link

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A trillion-dollar blunder

I have spent some two to three decades railing against faulty budgetary scoring of tax bills, but the latest charade from the Congressioanl Budget Office (CBO) and Joint Tax Committee takes the cake. The story of fiscal phony math is so indefensible when it comes to the Trump tax cut that you may not believe it could be true. Alas, it is.

The story starts with the CBO forecast in 2017 that over the next decade the national debt will double to 150 percent of GDP in about 20 years. Those are debt numbers that don’t have a happy ending — just ask the citizens of Puerto Rico, Detroit and Greece.

  • Publisher: The Washington Times
  • Author: The Washington Times http www washingtontimes com
  • Twitter: @washtimes
  • Citation: Web link

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When Fed Chair Powell speaks, the stock market drops, costing investors a total of $1.5 trillion

‘ Provided by CNBC Jerome Powell When Federal Reserve Chairman Jerome Powell starts talking, the market starts worrying.

Since the central bank chief took over in February, his public remarks have cost the market dearly ‘ specifically about a $1.5 trillion loss in market cap, according to a J.P. Morgan analysis.

Moving on.

The bank’s strategists specifically found that when Powell gives a news conference after a Federal Open Market Committee meeting, the S&P 500 typically drops 0.44 percentage points and has fallen each of the three times he has spoken to the media.

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