Sluggish Economic Recovery Proves Resilient

According to the article, the U.S. economy began expanding in June 2009, and after 58 months, the recovery is one of the most sluggish, based on the high unemployment and low GDP growth rates.

Economists and politicians offer numerous explanations for the slow recovery. Republicans blamed Democrats for tax increases, debt and regulations, that have added uncertainty to the economy while Democrats blame Republicans for withholding support for stimulus spending when the economy needs a boost and brinkmanship during fiscal battles.

Some economists attribute the unusually weak growth to the continuing effects of the financial crisis as these crises historically generated long-lasting drags on financial conditions. Others say that that the labor force and productivity are growing slowly while consumption and savings are reduced compared to the past. At the same time, some policy makers are concerned about the instabilities of the Fed.

On the other hand, it is believed that a typical recession remains distant because if boom must precede bust, no bust is in sight since growth has been so slow.

At least, we should not be worried for now as it looks like the economy is still growing and another recession seems far away.

http://online.wsj.com/news/articles/SB10001424052702304626304579510070088630140?mg=reno64-wsj&url=http%3A%2F%2Fonline.wsj.com%2Farticle%2FSB10001424052702304626304579510070088630140.html

Anti-Corruption Group Finds Fault With European Union

Transparency International, a prominent anti-corruption group, is prepared to announce a 250 page report about corruption in the European Union.  Some of the findings included in this report are that the Parliament was accepting money for softening tobacco legislation and a form of lawmaking that is done behind closed doors called trilogues, which are not able to be subject to much public scrutiny.  Transparency International is calling for a "legislative footprint,"disclosing all input received from lobbyists when making legislation. It is also being recommended that they establish a European Public Prosecutor.

http://www.nytimes.com/2014/04/24/business/international/anti-corruption-group-finds-fault-with-european-union.html?ref=international&_r=0

Korea vs. U.S.: Executive salary gap

The companies recently reported on the annual salaries paid to these executives based on laws calling for disclosure for those who are registered on the corporate board and receiving 500 million won ($481,000) or more.
Most of the population seemed to think that these executives were getting paid too much. 
Out of the 200, the average pay package of the highest-paid 20 executives reached $22.71 million. 
Back in Korea, the highest-paid 20 executives out of the 640 who were obligated to reveal their salaries were found to be receiving an average 8.44 billion won. 
This shows that the U.S. executives were paid about three times the amount of their Korean counterparts.
Among the U.S. companies, 200 executives were paid more than $2 million annually. Their pay packages included not only monthly salaries, but bonuses and stock options as well.

 http://www.koreaherald.com/view.php?ud=20140414001165

Powdered Alcohol - Good or Ridiculous?

The federal government recently approved the sell of powdered alcohol by a company called Palcohol. The founder of Palcohol was inspired to come up with an alcohol pack during activities like hiking and camping without having to carry heavy bottles of wine, beer or spirits. One package weighs about an ounce and is small enough to fit into any pocket. When used as directed, the consumer adds five ounces of liquid to the powder, creating a beverage equal to a standard mixed drink. There are several versions to pick from such as distilled vodka, cosmopolitan, mojito, etc. 

The company expects Palcohol to be on sale this fall.

Note: snorting alcohol powder is bad idea...

New-home sales tumble in March; prices rise

(Article)

The spring home-buying season has not started out so well. Single family home sales dropped 14.5% from February to march, this came as a surprise as economist predicted an increase after February. Some economists blame this winter’s crazy weather but others noted the current high prices and high mortgage rates.  The economy is still recovering, so it will be interesting to see how this plays out in the future.

Judges May Overturn Decision on Two Former Traders

http://dealbook.nytimes.com/2014/04/22/appeals-court-raises-doubts-about-governments-insider-trading-case/?_php=true&_type=blogs&_r=0

This article discusses a trial in the United States Court of Appeals between two former hedge fund traders, Todd Newman and Anthony Chiasson, and the government. The Court of Appeals has said to be questioning "whether the judge in the trail erred she instructing jurors". There was an hourlong hearing, including a three judge panel, that hinted that the decision might be overturned. This article outlines the hearing and discusses whether the Wall Street crackdowns are truthful. Mr. Bharara has had a sweeping campaign as a United States attorney to eliminate insider trading on Wall Street. Mr. Bharara's perfect record (80 insider trading convictions without a single defeat) is now in jeopardy.

The article not only discusses what went on in the hearing with Mr. Bharara, but states that "a judicial chiding here or there will not slow his momentum, and legal experts said the appellate court could very well uphold the insider trading convictions, A reversal, however, might undercut one of his greatest achievements".

The outcome of this appeal will be very influential on Wall Street and for Mr. Bharara's reputation.

Money From Nothing

Chronic deflation may keep Bitcoin from displacing its fiat rivals

This article examines the bitcoin, its growth (from $490 million to $7.9 billion) over the last year, and its status as a "real" form of money. It views the success and allure of the bitcoin by looking at its capability to be: a unit of account, a medium of exchange, and a store of value--the three characteristics that define "money."

The article argues it is best used as a medium of exchange, as it can be quickly and cheaply transferred across the globe in exchange for goods, services, or other currencies. The author questions its stability as a store of value, considering a major recent heist of nearly 6% of outstanding bitcoins from the Mt. Gox exchange. Also, the author doubts the bitcoin's chances at being a unit of account, based on volatile values and people's tendencies to view bitcoins in terms of dollars or euros, instead of having its own intrinsic value. In conclusion, the article views the eventual capping at 21 million units as a method to deter constant central bank meddling with the currency. It also discusses that natural inflation is good for money and that the future of the bitcoin will undoubtedly be very interesting.

The fuel of the future, unfortunately

http://www.economist.com/news/business/21600987-cheap-ubiquitous-and-flexible-fuel-just-one-problem-fuel-future

Coal may be dirty and have numerous environmental costs such as increased emissions of Carbon Dioxide and sulfur dioxide. Coal mines are also known to be very dangerous places to work. Despite the numerous problems associated with coal, it is still a crucial source of energy and economic output in many nations and may prove to be beneficial for developing countries that less focused on the environment. The coal industry is one that is truly consumer friendly because its prices are not determined by cartels.

America's Shale-gas boom has had an effect on coal production in the U.S. Duke Energy and AEP have both shut down coal-fired plants. Still, The Federal Energy Information Administration predicts that the U.S. will still be generation 22% of its electricity from coal in 2040, which is only a 4% decrease from current output. Another effect on the coal industry from America's Shale-gas boom is that coal prices have significantly decreased, and much more coal is now being exported. Coal companies are becoming increasingly concerned that their decreasing revenue will soon not be able to cover the high cost of capital and production in the coal industry.

The Cost of Closure- Malaysian Flight 370

The ongoing search for answers in the case of the missing Malaysian flight 370 is far from over. The families of the 239 passengers are attempting to keep up hope, but searching at least for answers and closure. The search has been ongoing for 44 days and little concrete information has been offered up. Officials have decided to prolong the search and rescue efforts which could cost an estimated quarter of a billion dollars (US). This cost estimate includes the use of various underwater search drones, currently out on their eight mission for information.
With the month long battery lifespan of the black pinging boxes over, there are increased research and development efforts to create new black boxes whose batteries could last up to 3 months. No matter the cost, lives and answers are the primary concern.

Sub-Saharan Africans Pay Twice as Much to Send Money Home

Compared to Latin America and Southeast Asia, Africa pays twice as much to send money home.  Transactions fees cost $1.8 billion annually.  This is due to the decrease of transactions costs in Latin America and Southeast Asia but in Sub-Saharan Africa the costs have stayed the same.  It is ridiculous that the poorest people in the world are paying the highest price.  But the expatriates have no other choice, they must send money home.  The Oversees Development Institute calls for better regulation of money transfers and banks, blaming the high fees on the lack of competition. Western union, who makes up a high amount of the remittance transfers says there is not way around the fees.

http://america.aljazeera.com/articles/2014/4/17/african-remittanceseconomy.html