What we’re reading (7/22)
“Fed Chief Powell Enjoys Support For Reappointment, But He’s Not a Lock” (Wall Street Journal). “President Biden’s selection of the next Federal Reserve chair is likely to be a choice between keeping the current chief, who enjoys broad support in markets and among lawmakers from both parties, or replacing him with one of his well-regarded colleagues. Chairman Jerome Powell, whose term expires in February, is viewed by some inside and many outside the administration as the front-runner for the job.”
“The Bond Market Is Torn Over The Potential For Higher Inflation And Lower Growth” (CNBC). “A volatile environment for government bonds is reflecting a highly uncertain future for the U.S. economy, pointing to both slower growth and stubborn inflation. After a burst higher earlier this year that scared markets, Treasury yields have fallen back sharply as investors have switched their focus from worries about price increases to the potential that the rapid burst in post-pandemic activity could start to slow down.”
“AMC And Other Meme Stocks Flipped The Way Markets Usually Work” (MSNBC). “[W]hile most market observers, including me, thought that the meme-stock bubble would quickly burst, leaving many retail investors holding the bag, it has proved shockingly resilient. GameStop's stock, for instance, is still up by almost 1,000 percent in 2021, while AMC's stock is up by more than 1,800 percent. Now meme-stock traders are doing something even more surprising: using their power to reshape corporate decision-making.”
“JPMorgan Awards Jamie Dimon Surprise Retention Bonus” (Wall Street Journal). Present value? $50 million. And with “one exit strategy open for Mr. Dimon: He can exercise them if he leaves the bank for an elected or unelected government job, according to the regulatory filing.” SPC’s view: seen him in person, wasn’t impressed. And his return-to-office commentary has been embarrassing and totally out-of-touch.
“Why Should They Call Us ‘Professors’?” (Marginal Revolution). “Some of the strongest norms are around the title ‘Doctor.’ Just about everyone calls their physician ‘Doctor,’ though the esteemed profession of lawyer does not receive similar treatment. As a Ph.D.-toting academic, I’ve even had people say to me — correctly — ‘You’re not a real doctor.’ I fear that by ceding this unique authority status to doctors we are making it easier for them to oversell us medical care, a major problem in the U.S. If your doctor suggests that you need a procedure done, it can be hard to say no, especially if you have been deferring to that person for years through the use of an honorific title.”
