What we’re reading (8/1)
“FTC’s Economics Witness Out, In New Blow To Court Fight With Facebook” (Politico). “The lead economics expert in the Federal Trade Commission’s antitrust suit against Facebook has parted ways with the agency, two individuals familiar with the case said — adding yet another impediment to the regulator’s largest court fight…[t]he expert, University of California-Berkeley economist Carl Shapiro, didn’t respond to multiple phone calls and an email asking the reasons for his departure. But he has criticized new FTC Chair Lina Khan’s aggressive approach to antitrust enforcement, and she in turn has faulted the agency’s traditional reliance on economists’ analyses in its fights against alleged monopolists.”
“Fed’s Brainard Says Labor Market Hasn’t Satisfied Goals For Reducing Bond Purchases” (Wall Street Journal). “The U.S. labor market hasn’t achieved enough progress to justify a pullback in the Federal Reserve’s stimulus program but is on track to reach a key threshold around the end of the year, a top central bank official said in a speech prepared for delivery Friday night. The Fed cut its benchmark interest rate to near zero in March 2020 and has been purchasing at least $120 billion a month in Treasurys and mortgage bonds to provide extra stimulus to the economy.”
“Interest Rates Haven’t Been This Low In 5,000 Years” (MarketWatch). “How is this for a historical comparison — interest rates are at a 5,000-year low. That’s a finding in the latest Bank of America flow show report, which, in fairness, is a number that’s been trotted out before. It’s based on a 2005 book about the history of interest rates, but the chart is still incredible to examine. ‘In the next 5,000 years, rates will rise, but no fear on Wall Street this happens anytime soon,’ said David Jones, director of global investment strategy at Bank of America.”
“Hedge Fund Buys Paper. Hedge Fund Closes Paper.” (New York Times). “Over the last 15 years, more than one quarter of newspapers, mostly weeklies like The Blade-News, have gone out of business, according to a University of North Carolina study. Alden and other hedge funds have bought struggling papers, seeing them as undervalued assets that can be made profitable after further cutbacks.”
“Lumber Prices Have Fallen, But The Stage Is Set For A Potential 65% Rally Through The End Of The Year, An Expert Says” (Business Insider). “[W]ith the $1.2 trillion bipartisan infrastructure deal moving through Congress, a continued rise of housing prices thanks to near-zero interest rates, and seasonal historic trends, there is a good chance lumber prices will rise again, to as high as $1,000 per thousand board feet, according to Joshua Mahony, senior market analyst at trading platform IG.”
