Posts by Stacy Curtin

  • America’s Student Loan Crisis: Generation I.O.U.

    Stacy Curtin at Daily Ticker1 yr ago

    Graduation season is here!

    But instead of planning for a year abroad or embarking on exciting new careers, many new grads are instead paralyzed with fear over a weak job market and crushing debts.

    “I am a slave to my student loans and I cannot take it," says Flickr user Rhiannon. She's a 27-year-old graduate of Arizona State University.

    Related: Generation I.O.U. Slideshow

    In 2011 two-thirds of college seniors graduated with roughly $27,000 in student loan debt. More than 38 million Americans owe more than a combined $1 trillion in outstanding student loans.

    If you are a parent or a student, you know that college education costs have skyrocketed in recent years. What you may not know is that the annual cost of a four-year degree has risen three times as fast as the rate of inflation since the 1970s.

    Why the U.S. higher education system is broken

    What makes this crisis worse is the fact that finding a job after college graduation has becoming increasingly difficult in this tough economy.

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  • 12 (Misguided) Commandments of Gold Bugs: Barry Ritholtz

    Stacy Curtin at Daily Ticker1 yr ago

    Gold prices have finally stabilized after falling roughly 11% over the last week.

    The yellow metal closed Thursday up 1.84% to $1,417 an ounce.

    The reason for the recent drop in gold prices is unclear but some cite Cyprus selling its gold to cover the cost of its bailout as a factor or central bank manipulation.

    Related: Gold Tumbles Again: Is the Era of Gold Over?

    Barry Ritholtz of Fusion IQ made a prescient call last December when he sold all his gold. He has recently been writing on his The Big Picture blog about the "New Great Rotation" from commodities into bonds (versus the "old rotation" from stocks to bonds).

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  • CEOs Make More Than 350 Times the Average Worker: AFL-CIO

    Stacy Curtin at Daily Ticker1 yr ago

    CEO pay was 354 times that of the average worker last year, according to the AFL-CIO's new Executive PayWatch database. The labor group asserts that this is "by far the largest pay gap in the world."

    In 2012, the chief executives of some of the country's largest companies earned an average of $12.3 million in compensation compared to the average worker who took home a salary of $34,645.

    “American chief executives continued to do very well for themselves last year, while workers struggle to make ends meet,” said Richard Trumka, president of the AFL-CIO. “We are calling out the hypocrisy of rich CEOs who have the gall to ask for corporate tax cuts to be paid for by squeezing the retirement security of working America. The American public deserves to know the truth about their self-serving agenda.”

    The three executives who earned the most last year, according to the AFL-CIO, include:

    That is too much, says Heidi Moore, economics editor at The Guardian, and something must be done to knock down this notion of the "imperial CEO."

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  • Banks Are Not as Bad as You Think: Pettis

    Stacy Curtin at Daily Ticker1 yr ago

    The last financial crisis catapulted the U.S. economy into the worse recession since the Great Depression. Since then, much time and discourse has been dedicated to blaming the big banks for engaging in risky business.

    Michael Pettis, finance professor at Peking University in Beijing and senior associate at the Carnegie Endowment for International Peace, recently wrote in the Financial Times that reckless banking is actually good for economic growth.

    He writes:

    "No growing economy has sustained a stable financial system. In fact, long-term wealth creation accrues most to societies in which the financial system most willingly funds risk-taking entrepreneurs. But the more a financial system is willing to finance risky new ventures, the greater the likelihood of banking instability. That, perhaps, is why the system that delivered the subprime crisis also funded the computing and internet revolutions."

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  • S&P 500 May Fall More Than 40% By Fall: Chris Martenson

    Stacy Curtin at Daily Ticker1 yr ago

    Even though the S&P 500 (^GSPC) and Dow Jones Industrial Average (^DJI) are hovering at all-time highs, Chris Martenson, author of and the “Crash Course” Series, is forecasting a major market correction.

    Martenson predicts the S&P could fall 40% to 60% to the 600-800 level by this fall. His last major market call was in March 2008, before the financial crisis.

    Related: U.S. Stock Market Is 'Overvalued, Overbought and Overbullish': John Hussman

    The Daily Ticker’s Lauren Lyster sat down with Martenson at the 2013 Wine Country Conference in support of Les Turner ALS Foundation to get his market and economic predictions.

    "I see recessionary signs all over the landscape. In particular, Europe is already in recession [and] Japan is already in recession," he says. "We are looking at global economic slowdown."

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  • Jim Chanos: Stay Away From U.S. Tech Firms

    Stacy Curtin at Daily Ticker1 yr ago

    While the American economy may continue to be sending investors mixed signals about a potential recovery, famed short-seller Jim Chanos still believes the U.S. is "the best house in a bad neighborhood." He's been bullish on U.S. markets for three years.

    Related: March Jobs Disaster: It’s a Bad Report But Don’t Panic, Brusca Says

    "Boy the U.S. market has gone up quite a bit since then," says Chanos of his prediction. "A lot of what we thought might happen three years ago has sort of now been reflected in prices."

    To his point, both the Dow Jones Industrial Average (^DJI) and S&P 500 (^GSPC) are trading near all-time highs. As a result, he is finding "fewer attractive long hedges in the U.S."

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