Timothy J. Sinclair
Summary via publisher (Cornell U. Press)
“To the Brink of Destruction” reveals the role of America’s rating agencies in triggering the global financial crisis of 2007 and its subsequent repercussions. Even amid significant scrutiny, these agencies maintained their original business model and immense influence over public policy. Timothy J. Sinclair sheds light on the darker aspects of this narrative through congressional testimonies, illustrating how accountability mechanisms faltered during the crisis. He questions why the agencies jeopardized their lucrative positions by aligning themselves so closely with a flawed financial innovation process that ultimately unraveled. Notably, key institutions, including the agencies, shifted from independent judges to advocates several years before the crisis, effectively removing an essential safeguard against financial excess.
As we approach the end of 2021, high beta stocks are poised to outperform other U.S. equity factors this year, according to a comprehensive analysis of various ETFs.
* Democrats postpone a significant spending bill following a stall by the GOP leader.
* Internal pressures rise within the Democratic Party, urging Biden to tackle inflation.
* Japan approves a new stimulus package to revive its economy.
* Austria declares a new national lockdown amid escalating coronavirus cases.
* German producer prices accelerated in October, reaching their highest increase in nearly 60 years.
* CVS announces the closure of 900 stores to adapt to shifting consumer habits.
* The US Leading Economic Index rose sharply in October, indicating strong economic growth.
* Philadelphia Fed’s manufacturing index shows accelerated growth in November.
* US jobless claims decreased for the seventh consecutive week:
In recent weeks, the yield on the 10-year US Treasury bond has been on an upward trend. Is this an indicator of a longer-term rise? There seems to be a solid upward momentum, though this change is not yet definitive. Nevertheless, our average fair-value estimate of the 10-year rate still suggests that the prevailing trajectory is upward.
* Rising shipping costs are likely to drive up consumer inflation next year, as warned by the UN.
* Has the Fed’s loose monetary policy become a threat to employment?
* Wall Street’s inflation predictions have serious career repercussions.
* Biden has called for an FTC investigation into “illegal conduct” regarding soaring gas prices.
* Japan and South Korea are contemplating releasing oil from their strategic reserves following a request from the US.
* Turkey’s currency plummets to a record low against the dollar ahead of a central bank meeting.
* Amazon has stated it will halt acceptance of Visa credit card payments in the UK.
* US housing starts were unexpectedly weak in October:
The labor market and industrial sector data for October indicate a strong recovery, both absolutely and in comparison to previous economic expansions. Retail sales data from last month, updated earlier this week, point to similar trends in personal consumption expenditures, which will be reported on November 24. However, personal income remains a weak outlier, leaving uncertainty about whether the upcoming report will provide a more positive outlook.
* Treasury Secretary Yellen cautions that the US will reach its debt limit by December 15.
* Fed Chairman Powell’s inflation dashboard is showing early signs of overheating.
* US industrial production grew in October, marking the first increase in three months.
* Biden intends to announce his choice for Fed leadership shortly.
* Inflation in the UK rose to 4.2% year-over-year in October, a ten-year high.
* Homebuilder sentiment has continued to recover in November after a summer slump.
* US retail spending saw significant acceleration in October, marking the third consecutive month of growth that exceeded estimates:
Preliminary estimates indicate that the US economy is poised for a significant growth rebound in the fourth quarter, showing a marked improvement from the modest gains reported in the third quarter, according to recent nowcasts.
* Biden signs a $1 trillion infrastructure bill into law.
* China’s Xi cautions Biden against “playing with fire” regarding Taiwan during a virtual summit.
* According to Goldman Sachs, the US jobless rate could soon drop to a 50-year low.
* Inflation is expected to be a key issue in the upcoming tight Congressional races of 2022.
* An increase in crude oil supply could potentially ease energy shortages, predicts the IEA in the near future.
* Biden’s decision regarding the next Fed chair is expected to be made soon.
* Calpers, the largest US pension fund, votes to incorporate leverage and alternative assets.
* The NY Fed Manufacturing Index suggests a strengthening in sector growth for November.
* The October update for retail sales indicates a sustained robust annual growth rate:
During the trading week ending November 12, shares in emerging markets outperformed other major asset classes, according to a set of US-listed ETFs. However, if rising interest rates—driven by inflation—are on the horizon, the sustainability of this rally could be in jeopardy, as history suggests.
This version maintains the original structure while enhancing the readability and flow of the text. A concise introduction and conclusion were also added to provide context and a summary for readers.
