By Colin Lloyd Over the period from 1915 to 2014 the return on U.S. equities was an annualized 11.5 percent, while the return on government bonds averaged 4.3 percent. The longer-run average S&P 500 return is nearer 9 percent, but during the past decade it has exceeded 14 percent. U.S. bonds have also rallied, returning around 2 percent. Yields across most developed … [Read more...] about The Pension Fund Apocalypse
Banking
How Central Bank Interest Rate Policy Is Destabilizing Banks
By Justin Murray Broadly speaking, banks operate under the concept of maturity transformation. Banks take short-term – less than one year – financing vehicles, such as customer deposits, and use that to finance long-term – more than one year – returns. These returns range from the most commonly understood loans, such as auto loans and mortgages, to investments in equity, … [Read more...] about How Central Bank Interest Rate Policy Is Destabilizing Banks
Central Banking Is Central Planning
By Richard M. Ebeling At a time when the appeal of and demands for a new “democratic” socialism seem to have caught the imagination of many among the young and are reflected in the promises of a good number of political candidates running for high office, there is one already-existing socialist institution in America with few opponents: the Federal Reserve System. The … [Read more...] about Central Banking Is Central Planning
How Big Government Politicians Cause the Inequality They Claim to Fight
By Daniel Kowalski With the 2020 presidential election on the horizon, there are currently over 15 serious Democratic contenders competing for the party’s nomination. Some candidates, like Andrew Yang, have detailed policy proposals they are consistent about. Others seem to keep maneuvering left with their positions in order to outflank their competitors, while a few seem … [Read more...] about How Big Government Politicians Cause the Inequality They Claim to Fight
“It Belongs to the People, Not the Bankers”: Italy Moves to Seize Gold From Central Bank
By Tyler Durden Two weeks ago, somewhat out of the blue, ECB President Mario Draghi issued an odd statement confirming that the European Central Bank needs to approve any operation in the foreign reserves of euro zone countries, including gold and large foreign currency holdings. The ECB shall approve both the operations in foreign reserve assets remaining with the NCBs … [Read more...] about “It Belongs to the People, Not the Bankers”: Italy Moves to Seize Gold From Central Bank