What we’re reading (5/7)
“Warren Buffett ‘Broke’ Nasdaq: System Is Unable To Record High Berkshire Hathaway Share Price” (Entrepreneur). “Berkshire Hathaway shares, an investment group led by Warren Buffett , have reached such a high price that Nasdaq computers are unable to record their price. The entity stopped transmitting the quote from Tuesday and today there is no information about them on its official website.”
“From Dutch Tulips To Internet Stocks, How to Spot A Financial Bubble” (Wall Street Journal). “History shows that investment crazes are often associated with financial innovation, new instruments created by Wall Street middlemen, surrounded by mystery and fueled by expectations of big future profits. Sometimes they go very badly.”
“Fed Concerned About The Risks That Accompany Soaring Markets” (Washington Post). “A soaring stock market and fanfare around “meme-stocks” are drawing the attention of the Federal Reserve, as the economic recovery casts some shadows on a party that could eventually wind to an end. Rising asset prices, plus riskier investor appetites, were noted in the Fed’s latest Financial Stability Report, with fears that a significant drop-off in asset prices could ripple through the broader financial system.”
“Nobel Prize-Winning Economist Paul Krugman Details The Indicators He's Watching For The First Signs Of An Inflation Shock” (Business Insider). “Krugman said he's watching a handful of indicators to determine whether inflation poses a significant risk to the recovery. Core inflation isn't enough, since various bottlenecks could elude the benchmark, he said. Instead, the inflation-metric dashboard maintained by the Federal Reserve Bank of Atlanta gives a more holistic view of nationwide price growth. Sticky inflation indices, which track a subset of goods and services that change price somewhat rarely, are also worth monitoring, he said.”
“Nearly 1 In 3 New Stores Opening In The US Is A Dollar General” (CNN Business). “These openings are a continuation of dollar stores' rapid growth even before the pandemic. Economists and retail analysts say dollar stores are expanding in part because of growing wealth inequality in the United States and the hollowing out of the middle class. The share of American adults who live in middle-income households decreased from 61% in 1971 to 51% in 2019, according to Pew Research Center.”
