• RT @NPRinskeep: It's the general view of historians that Jackson's practices degraded the quality of government service and damaged the rul…
    David Wessel Fri 15 Nov 2019 15:36
  • Dec 5. Hutchins Center @BrookingsInst: #RepoMarket disruption: What happened, why, and should something be done? Link Nellie Liang, Trish Mosser, Jerome Schneider, Dan Tarullo, Bill English, Bill Nelson, Sean Campbell, Sandie O'Connor, Tim Clark, Jim Wigand
    David Wessel Fri 15 Nov 2019 15:16

    In September, a disruption in the market in which banks and others lend and borrow for very short periods of time, the repo market, led to a sharp spike in short-term interest rates and prompted the Federal Reserve to inject tens of billions of dollars of reserves into the markets. The episode has given rise to questions about the Fed’s new operating framework for influencing interest rates and about possible unintended consequences of regulations imposed after the global financial crisis to make sure banks have enough liquidity to handle another crisis. JP Morgan Chase CEO Jamie Dimon suggests that resolution-and-recovery liquidity stress tests may need to be re-calibrated. U.S. Treasury Secretary Steve Mnuchin says it may make sense for regulators to examine intra-day liquidity rules. Senator Elizabeth Warren (D-Mass.) says she suspects that banks are using the episode to ease liquidity requirements they have long disliked.

    On Thursday, December 5, the Hutchins Center...

  • Capital Gains Tax Options: Behavioral Responses and Revenues Link
    David Wessel Fri 15 Nov 2019 15:06
  • RT @davidfrum: The @pagesix story makes clear Don Jr. didn't bulk-purchase his book to push it up the NYT list. The Republican National Com…
    David Wessel Fri 15 Nov 2019 14:51
  • Jane Gravelle of CRS says mark-to-market may be the only way to increase taxes on people at the top. Link #TaxingCapital
    David Wessel Fri 15 Nov 2019 14:41

    Given increased income and wealth inequality, much recent attention has been devoted to proposals to increase taxes on the wealthy (such as imposing a tax on accumulated wealth). Since capital income is highly skewed toward the ultra-wealthy, methods of increasing taxes on capital income provide alternative approaches for addressing inequality through the tax system. Marking the value of assets to their market prices is a way of taxing asset appreciation annually instead of waiting until the assets are sold and the gain is realized. Other capital income taxation proposals are being developed and discussed, and they share key features.

    All proposals seeking to increase and accelerate the tax imposed on capital income raise a number of design and implementation questions. A keynote address and two panel discussions will deepen the conversation by addressing the following:

  • RT @Aarondklein: TFW you realize the @federalreserve chair in 1933 called for high income and inheritance taxes “not to soak the rich but t…
    David Wessel Fri 15 Nov 2019 14:30
  • UK Labour Party ad that just might work for US Democrats (without the British accents) Link
    David Wessel Thu 14 Nov 2019 22:25

    You can add location information to your Tweets, such as your city or precise location, from the web and via third-party applications. You always have the option to delete your Tweet location history. Learn more

  • RT @florianederer: 1) Yale has a large indoor tennis facility with low prices. 2) Local competitors don't like Yale's low prices. 3) They f…
    David Wessel Thu 14 Nov 2019 22:15
  • Here's the weekly Hutchins Roundup: How many House seats Trump's trade war cost Republicans, how Fed should set interest rates given risk of hitting lower bound, what's driving (or not driving) inflation. Link via @BrookingsInst
    David Wessel Thu 14 Nov 2019 21:30
  • RT @davidjoachim: The Dow closed at: 27691.4854488934 on Monday and 27691.4854488934 on Tuesday What are the odds? https://t.co/g6spWw…
    David Wessel Thu 14 Nov 2019 21:20
  • @WSJ OCC wants to count number of $ in CRA loans as part of a new formula. Fed thinks that would have uintended negative consequences.
    David Wessel Thu 14 Nov 2019 17:00
  • Comptroller of the Currency Joseph Otting prepares to move on CRA rewrite without striking a deal with Federal Reserve (which is working on its own proposal) for a joint OCC-FDIC-Fed proposal. Link via @WSJ
    David Wessel Thu 14 Nov 2019 17:00

    WASHINGTON—A top bank regulator is poised to propose changes to bank lending requirements that could potentially transform the way lenders make billions of dollars in loans, investments and donations to customers in lower-income areas.

    The proposal from the Office of the Comptroller of the Currency to regulations of the Community Reinvestment Act, which requires banks to serve borrowers of all income levels who reside near their branches, could also make it easier for banks to meet certain lending requirements, particularly in poorer neighborhoods. The agency is planning to release its overhaul sometime in December.

  • Mark your calendar for Dec. 5: The repo market disruption: What happened, why, and should something be done about it? Link @BrookingsInst Hutchins Center
    David Wessel Thu 14 Nov 2019 15:00

    In September, a disruption in the market in which banks and others lend and borrow for very short periods of time, the repo market, led to a sharp spike in short-term interest rates and prompted the Federal Reserve to inject tens of billions of dollars of reserves into the markets. The episode has given rise to questions about the Fed’s new operating framework for influencing interest rates and about possible unintended consequences of regulations imposed after the global financial crisis to make sure banks have enough liquidity to handle another crisis. JP Morgan Chase CEO Jamie Dimon suggests that resolution-and-recovery liquidity stress tests may need to be re-calibrated. U.S. Treasury Secretary Steve Mnuchin says it may make sense for regulators to examine intra-day liquidity rules. Senator Elizabeth Warren (D-Mass.) says she suspects that banks are using the episode to ease liquidity requirements they have long disliked.

    On Thursday, December 5, the Hutchins Center...

  • Welcome! Link
    David Wessel Thu 14 Nov 2019 14:09

    You can add location information to your Tweets, such as your city or precise location, from the web and via third-party applications. You always have the option to delete your Tweet location history. Learn more

  • RT @mcnienaber: The German economy escaped a recession in the third quarter as consumers, state spending and construction drove a 0.1% quar…
    David Wessel Thu 14 Nov 2019 11:19
  • RT @IWPResearch: IWPR is pleased to welcome @CNicoleMason as our new president and CEO! Dr. Mason's research on economic security, racial e…
    David Wessel Thu 14 Nov 2019 02:09
  • RT @colinwilhelm: It sort of blows my mind that this exists https://t.co/a5emgcDACE
    David Wessel Wed 13 Nov 2019 13:58
  • @BrookingsInst Link
    David Wessel Wed 13 Nov 2019 01:43

    Ascertaining the size of the undocumented population is difficult. Estimates vary according to the methodology used. While anti-immigrant groups maintain that the flow of undocumented immigrants has increased, estimates show that over a longer period the number has declined. An often-overlooked fact is that many illegal immigrants pay payroll taxes and sales taxes.

  • Estimates of the number of undocumented immigrants living in the U.S. range from 10.5 million to 12 million, or approximately 3.2%–3.6% of the population. Link #policy2020 @BrookingsInst
    David Wessel Tue 12 Nov 2019 22:38

    Ascertaining the size of the undocumented population is difficult. Estimates vary according to the methodology used. While anti-immigrant groups maintain that the flow of undocumented immigrants has increased, estimates show that over a longer period the number has declined. An often-overlooked fact is that many illegal immigrants pay payroll taxes and sales taxes.

  • Elaine Kamarck and Christine Stenglein: How many undocumented immigrants are in the United States and who are they? #Policy2020 @BrookingsInst
    David Wessel Tue 12 Nov 2019 22:38
  • @WSJ I used the beer business as an example in this piece: Is lack of competition strangling the US economy? Link
    David Wessel Tue 12 Nov 2019 21:08

    There’s no question that most American industries have become more concentrated. Economists are trying to understand whether this is necessarily a bad thing for competition.

    The short answer: It’s complicated. Innovation superstars like Google have created winner-take-most markets largely by exploiting network effects, not through predatory behavior. However, research from the wider economy (including the tech sector) uncovers classic signs of unhealthy concentration: rising profits, weak investment, and low business dynamism.

    The government’s approach to antitrust violations is due for an overhaul. And regulators need to pay more attention to protecting economic vitality and consumer well-being — and less to industry lobbyists.

  • More concentration: Anheuser-Busch agrees to buy the 68.8% of Portland's Crew Brew Alliance (Kona, Omission, Reehook, Cisco) that it doesn't already own. Link via @WSJ
    David Wessel Tue 12 Nov 2019 18:48

    Anheuser-Busch InBev SA has agreed to buy out the remaining shares of Craft Brew Alliance Inc. that it doesn’t own, placing the value of the Portland, Ore.-based company at roughly $321 million.

    With the proposed merger, the Budweiser, Stella Artois and Beck’s parent will bring into the fold such brands as Kona Brewing Co., Omission Brewing Co., Redhook Brewery and Cisco Brewers.

  • @BrookingsInst Fact No. 5: Even when grants cover the whole cost of tuition (e.g. Pell Grants at community colleges, many students still borrow...to pay living costs. For those at public schools who pay no net tuition, 22% borrow $30k or more.
    David Wessel Tue 12 Nov 2019 18:43
  • @BrookingsInst Fact No. 4: Most bachelor's degree recipients graduate with little to no debt. Few than 20% owe more than $40,000.
    David Wessel Tue 12 Nov 2019 18:43
  • @BrookingsInst Fact No. 3: individuals who owe the most aren't the ones who are most likely to default. Highest default rates: People who went to two-year for-profit schools.
    David Wessel Tue 12 Nov 2019 18:38
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