Scott Galloway
Review via Publishers Weekly
In this insightful examination, NYU business professor Scott Galloway (author of Post Corona) utilizes data to highlight the significant increases in economic inequality, political divisiveness, and social isolation since the 1980s. Galloway argues that while Ronald Reagan’s tax reductions and budget cuts stimulated the economy, they also constrained social mobility. He employs graphs, pie charts, and other visuals to depict the notable disparity in wage growth between the top 1% of American workers and the majority. Moreover, he reveals the alarming reduction in infrastructure spending, which has left 45% of Americans without access to public transportation, and notes that over half of corporate profits are now registered in foreign tax havens, a sharp increase from just 5%. Nonetheless, he also presents data showing how U.S.-led globalization in the past four decades has successfully reduced global poverty and infant mortality rates. Overall, Galloway paints a picture of rapidly escalating domestic decline, as Reagan’s philosophy of “rugged individualism” has evolved into an “idolatry of innovators,” fueling growing distrust and intolerance towards government.
The upcoming third-quarter GDP report for the U.S. is expected to show a rebound in economic activity, but the anticipated bounce has significantly diminished, as indicated by the median estimates from a set of nowcasts compiled by CapitalSpectator.com.
* Russia is poised to formally annex parts of Ukraine
* Hurricane Ian is heading towards the Carolinas after impacting Florida
* Eurozone inflation reaches a record high of 10% in September
* The U.S. GDP confirmed a 0.6% decline, according to revised data
* The gross domestic income (GDI) in the U.S. has been revised down for Q2
* Manufacturing activity in China declined for a second consecutive month in September
* The services sector in China slowed in September, underscoring economic struggles
* U.S. jobless claims dropped to a five-week low, indicating labor market strength:
* Real (inflation-adjusted) yields have surged in recent weeks, prompting discussions about whether it’s a good time to invest in inflation-indexed Treasuries (TIPS). While the opportunity is worth considering, it is essential to recognize that real Treasury yields present a unique blend of opportunity and risk when compared to standard Treasuries. Therefore, selecting the appropriate tool for your investment goals is vital.
* Over 2.5 million customers in Florida are without power due to Hurricane Ian
* The Fed’s Bostic supports a fourth consecutive 75-basis-point rate hike in November
* The Federal Reserve is exporting inflation to economies globally
* Growing deficits are increasingly dangerous now that inflation has surged
* China’s new fiscal stimulus surpasses the amount issued in 2020
* Economic sentiment in the Eurozone continues its significant decline in September
* UK Prime Minister Liz Truss continues with tax cuts despite public backlash
* Pending home sales in the U.S. dropped for the third consecutive month in August
* The 3mo/10yr Treasury yield curve increased for the fourth day, reaching its highest level since July:
In the U.S. stock market, risks are prevalent, yet high-dividend-yielding shares remain the primary defense against losses so far this year, as evidenced by a variety of proxy ETFs through the market close on September 27.
* UK Prime Minister Liz Truss’s economic strategy may threaten her government’s stability.
* The IMF advises the UK to reconsider tax cuts in light of inflation concerns.
* Hurricane Ian poses a threat to be one of the most expensive storms in U.S. history.
* Suspicions of sabotage arise concerning leaking Russian gas lines to Europe.
* China’s current falls to a record low against the U.S. dollar.
* Core durable goods orders in the U.S. saw a continued increase in August.
* U.S. home prices decreased at the fastest rate ever recorded in the S&P Case-Shiller Index for July.
* New home sales in the U.S. rebounded in August, soaring nearly 29% compared to July.
* The San Francisco Fed President states that the central bank aims to avoid a recession.
* The U.S. Consumer Confidence Index increased for the second consecutive month in September:
In recent weeks, inflation-adjusted interest rates have escalated dramatically. Not long ago, analysts and markets expressed concerns about the implications of negative real rates. This situation has swiftly changed as the Federal Reserve continues its aggressive policies to combat inflation.
* The U.S. government is facing a potential shutdown without a new funding deal.
* Hurricane Ian has hit Cuba hard; Florida’s west coast is next in line.
* The global economy is experiencing a more significant slowdown than anticipated, according to OECD advisories.
* China’s economic growth is expected to lag that of the rest of Asia for the first time since 1990.
* The Yuan has dropped to its lowest level against the U.S. dollar in almost 14 years.
* The Bank of England has affirmed it will ‘not hesitate’ to lift interest rates despite the pound’s decline.
* The new Boston Fed president has stated that additional rate hikes are necessary to temper inflation.
* Activity growth in Texas manufacturing rose in September.
* The Wall Street ‘fear gauge’ known as the VIX Index has reached a three-month peak.
* The Chicago Fed National Activity Index indicates a continuing growth slowdown for the U.S.:
For the second consecutive week, every major asset class experienced declines through the close on Friday, September 23, according to a range of ETF proxies. From bonds and stocks to real estate and commodities, red ink marked global markets.
In summary, recent economic and political developments illustrate a complex landscape marked by rising inflation, increasing interest rates, and varying market reactions. The situation demands careful observation and strategic planning as individuals and nations navigate these turbulent times. With challenges ahead, it remains essential to stay informed and responsive to shifts in the economic environment.
