5 Things To Ponder: Salmagundi Introspections

5-Things-ExtraThis past week has been a virtual tennis match watching the evolution of the Greek bailout negotiations. No Deal, Deal, No Deal, Deal.

However, despite the fallout that would likely come from a Greek “exit,” the markets have largely managed to ignore the risk and hit an all-time high this week. Market valuations, bullish sentiment and complacency are all pushing higher as the focus remains on the ignition of the ECB’s QE program as a stimulus for the markets. In fact, this is so much the case that the net percentage of managers overweight Eurozone equities is at the highest level on record.


What could possibly go wrong?

This weekend’s reading list is a selection of articles discussing a variety of topics I found of interest this past week. However, I highly suggest that you read this week’s post on “No Economy Is An Island” which discusses the very important feedback loop of global deflation onto the US economy.

1) Fed Destroys Mainstream Meme by Tyler Durden via ZeroHedge

This past week the Federal Reserve released their latest FOMC minutes which supported my recent writings which discuss the negative effects of falling oil prices on the economy. Tyler picked the following gem out of the released minutes.

“Several participants noted that there were signs of layoffs in the oil and gas industries, and that persistently low energy prices might prompt a larger retrenchment of employment in these industries.

In addition, it was observed that if capital investment in energy-producing industries slowed significantly, it could damp the overall expansion of economic activity for a period, especially if the slowing took place after most of the positive effects of lower energy prices on growth in household spending had occurred.

Read Also: Falling Energy Costs And Economic Impacts

Read Also: Get Ready For $10 Oil by A. Gary Shilling via Bloomberg View

2) Lenders Step Up Financing To Subprime Borrowers by Alan Zibel and Annamaria Andriotis via WSJ

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Author: Travis Esquivel

Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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