Water is one of our most vital resources, and several recent publications explore the ongoing water crises and potential solutions for conservation. Below are three notable titles:
- Running Out of Water: The Looming Crisis and Solutions to Conserve Our Most Precious Resource
by Peter Rogers and Susan Leal
- Water: The Epic Struggle for Wealth, Power, and Civilization
by Steven Solomon
- Bottled and Sold: The Story Behind Our Obsession with Bottled Water
by Peter H. Gleick
As highlighted in a review from Foreign Affairs, these publications agree on the seriousness of the global water crisis yet propose different strategies for addressing it. They especially differ in their views regarding the roles that the public and private sectors should play in the solutions.
The Census Bureau reported this morning that new orders for durable goods fell by 1.3% in August. This decline effectively negates the previous month’s 0.7% increase, which had been the first rise since April. However, the situation may not be as dire as the headline indicates. The majority of the decrease arose from dramatic downturns in the volatile transportation sector. When excluding this sector, we actually see a rise of 2% in new orders. Additionally, new orders for capital equipment—excluding aircraft—soared by 4.1%, rebounding from July’s 5.3% decline. Overall, corporate investments showed signs of recovery last month.
A thought-provoking article in The Wall Street Journal emphasizes the growing belief that macroeconomic forces are increasingly driving investment decisions. James Bianco from Bianco Research noted, “Stock picking is a dead art form. Macro themes dominate the market now more than ever.” This raises important questions about the future of investment strategies.
David Rosenberg, chief economist at Gluskin Sheff & Associates, stated, “What makes the gold story so captivating is that bullion correlates with various factors—such as inflation, the dollar, interest rates, and political uncertainty.” He further mentioned that, “This year, gold has transitioned from merely a commodity to a form of currency—the classic role of a monetary metal that bears no government liability.”
–Bloomberg News
Last week’s update on jobless claims serves as a stark reminder that the labor market continues to face significant challenges. After a month of decreasing new claims for unemployment benefits, there was a reversal last week, with new claims rising by 12,000 for the week ending September 18, as reported by the government. While this news is disheartening, it doesn’t fundamentally alter the overall trajectory we’ve seen this year; the labor market remains sluggish.
Although unemployment remains high at 9.6% as of last month, the question arises: is it structurally high? This pertains to whether the increase in joblessness is due to underlying shifts in the economy or if it primarily stems from the recession’s aftermath. The distinction is crucial; if structural unemployment is prevalent, the justification for further monetary or fiscal stimulus diminishes. For instance, a fresh round of quantitative easing would likely yield little benefit if systemic issues are driving joblessness.
The Federal Reserve recently announced that it would maintain the target federal funds rate at 0 to 0.25%. This decision, while expected, underscores the ongoing weakness in the economy and suggests that rates will remain at this exceptionally low level for the foreseeable future. The central bank’s strategy of introducing more quantitative easing (QE), such as purchasing Treasuries, remains an open question. As QE is one of the few policy tools left at the zero interest rate boundary, the Fed seems to be preparing for the potential rollout of additional monetary stimulus in the future.
►Recession officially ended in June 2009
Megan Woolhouse/Boston Globe
“The Great Recession officially commenced in December 2007 and concluded in June 2009, marking an 18-month decline—the longest since World War II, according to the National Bureau of Economic Research, the organization that officially determines the beginning and end of economic cycles.”
►Lack of Joy Over the Recession’s Conclusion
Rick Newman/US News & World Report blog
“Perhaps it’s time for a redefinition of what a recession means.”
The National Bureau of Economic Research has officially declared the end of the Great Recession, stating that “a trough in business activity occurred in the U.S. economy in June 2009.” According to their announcement, the recession lasted for 18 months—making it the longest recession post-World War II. The previous records were set at 16 months during 1973-75 and again in 1981-82.
Last week, two ETFs were liquidated, and understandably so. One targeted Texas stocks while the other focused on Oklahoma companies. It raises the question: what was Geary Advisors LLC thinking when they designed these state-focused ETFs? Regardless of any potential investment merits—which appear minimal—it seems the market has deemed these products unsuitable for consumers.
