What we’re reading (10/20)
“The Wealthiest 10% Of Americans Own A Record 89% Of All U.S. Stocks” (CNBC). “The top 1% gained more than $6.5 trillion in corporate equities and mutual fund wealth during the Covid-19 pandemic, while the bottom 90% added $1.2 trillion, according to the latest data from the Federal Reserve. The share of corporate equities and mutual funds owned by the top 10% reached the record high in the second quarter, while the bottom 90% of Americans held about 11% of individually held stocks, down from 12% before the pandemic.”
“Credit Suisse To Pay $475 Million, Admits Defrauding Investors To Settle Mozambique Charges” (Wall Street Journal). “A subsidiary of the Swiss bank pleaded guilty to wire fraud conspiracy charges in New York federal court Tuesday. Credit Suisse, which previously had maintained it was a victim of rogue employees, admitted to defrauding investors who bought some of the debt and agreed to pay $275 million to resolve both a criminal probe by the Justice Department and a civil investigation by the Securities and Exchange Commission.”
“The $5 Trillion Insurance Industry Faces A Reckoning. Blame Climate Change.” (Vox). “The water has receded and the embers have died down from many of the disasters in the United States this year — leaving insurance companies that cover floods, fires, hail, and extreme cold on the hook for staggering losses. If current trends continue, they could suffer one of the costliest years in recent memory.”
“For Uber And Lyft, The Rideshare Bubble Bursts” (New York Times). “Underwritten by venture capital, Uber and Lyft hooked users by offering artificially cheap rides that often undercut traditional yellow cabs. But labor shortages and a desperate need to find some path to a profitable future have caused rideshare prices to skyrocket, perhaps to a more rational level. After burning through billions of venture capital dollars, Uber said it was on a path to profitability last year, using an accounting metric that ignores many of the costs that actually make it unprofitable. By the same measure, chief executive Dara Khosrowshahi is projecting this quarter could be profitable. That remains to be seen.”
“Long-Term NAEP Scores For 13-Year-Olds Drop For First Time Since Testing Began In 1970s — ‘A Matter for National Concern,’ Experts Say” (The 74). “Thirteen-year-olds saw unprecedented declines in both reading and math between 2012 and 2020, according to scores released this morning from the National Assessment of Educational Progress (NAEP). Consistent with several years of previous data, the results point to a clear and widening cleavage between America’s highest- and lowest-performing students and raise urgent questions about how to reverse prolonged academic stagnation.”
