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The United States: With mortgage rates remaining relatively low, more Americans think that now is a good time to buy a house.
Also, household assets as a percentage of disposable income are at record highs, boosted in part by low interest rates.
The Eurozone: According to a BIS study, the European repo market has, in recent years, been driven by investors seeking specific collateral rather than funding.
China: Here is one of Beijing’s attempts to address inequality. (Gini Coefficient is a measure of how much economic inequality there is from wealth distribution)
Equites: Microbursts of volatility have become more prevalent in recent years, with the S&P 500 drawdowns more frequent and severe.
In addition, index funds have been driving up trading volumes at the end-of-day auctions.
Rates: The Fed is limited in what it can accomplish with rate cuts in the next recession.
And the federal government is limited in its ability to boost fiscal stimulus because it’s already running a recession-level deficit.
Food for Thought: What if the US were a multi-party democracy?
Edited by Devon Lall
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