1 in 5 rely on food stamps - (money.cnn.com) Nearly one in five people are on food stamps in
five states, a stark reminder that the Great Recession continues to be a drag
on the nation's poorest. In Mississippi, Oregon, Tennessee, New Mexico and
Louisiana, food stamp use ranges around 20% of the population or more,
according to January government data recently analyzed by nonprofit Food
Research and Action Center. Nationally, about 15% of Americans are on food
stamps. And as the economy has improved, nationwide use of the safety-net
program for the most vulnerable has edged down to 46.5 million in January,
about 1.2 million fewer than a year earlier, according to the U.S. Department
of Agriculture. However, food stamp use in the five hungriest states has barely
budged since the height of the post-recession period in 2012, when food stamp
use was between 20 and 23% of the population in those states. The historic norm
is far lower. During the 1990's recession, when food stamp usage spiked in
1994, just 10% of the population was on food stamps.
If Russia goes over the cliff, it won’t go
alone - (www.cnbc.com) Secretary
of State John Kerry last month tried to explain the complexity of the
decision-making process surrounding sanctions on Russia. The U.S. and E.U. have
already announced very targeted sanctions against Russia as a penalty for its
takeover of Ukraine's Crimean peninsula and it's threatening posture toward
eastern Ukraine. However, what's been implemented so far is only a taste of what
a full-on sanctions regime, such as the one imposed against Iran, might mean
for the Russian economy. But in testimony before Congress last month, Kerry
noted that Russia is a major player in the world economy, and said that
damaging the Russian economy will also have effects on U.S. businesses
operating in Russia and on U.S. exports.
Junket
Figure's Disappearance Shakes Macau's Gambling Industry - (online.wsj.com) The
disappearance of a Macau junket figure believed to owe up to 10 billion Hong
Kong dollars ($1.3 billion) is roiling the world's largest casino market and
putting a spotlight on the opaque network of middle men who drive nearly
two-thirds of the Chinese territory's gambling revenue. Unlike other gambling
hubs like Las Vegas, Macau depends on junkets for many of its customers. These
companies bring high-spending gamblers to the casinos from mainland China,
issue them credit and collect players' debts in exchange for commissions. The
system took root there because the Chinese government imposes restrictions on
how much cash its citizens can take out of the mainland and because gambling
debts aren't considered valid inside China. Huang Shan, a junket operator
active in Macau's gambling industry for around four years, disappeared sometime
last month, according to several senior casino and junket industry executives
investigating the matter. Mr. Huang's disappearance leaves investors struggling
to recoup up to $1.3 billion, they said.
LABOR FORCE PARTICIPATION RATE PLUNGES - (www.businessinsider.com) The April jobs report beat expectations today.
U.S. companies added 288,000 nonfarm payrolls, which was much stronger than the 218,000
expected by economists. The unemployment rate tumbled to 6.3% from 6.7% a month
ago. But much of the change in the unemployment rate is due to labor force
participation rate, which fell to 62.8% in April from 63.2% in March. Bloomberg
reports this matches the lowest level since 1978. The LFPR has been falling for
a number of reasons including an aging workforce consisting of retiring baby boomers and growing numbers of young folks
heading to school.
The
Last Two Times This Happened, The Stock Market Crashed - (www.testosteronepit.com) The
last two times when margin debt reversed and fell after a record-breaking
spike, all hell broke loose. In 2000, it was simultaneous. In 2007, it was
delayed by a few months. Today, on the surface, everything is still hunky-dory.
The Dow is just fractions below its all-time high that it set on Wednesday. But
beneath the surface, parts of the stock market are already coming unglued, and
holders of momentum stocks have been eviscerated. The Nasdaq Biotech Index had
beautifully shot up along an exponential curve. Then the hot air hissed out of
it, and it swooned 21% in six weeks. The index includes big players, like
Biogen, not just startups with big dreams and no drugs. After some buying on
the dip, the index closed on Thursday down "only" 15%. But that hasn’t
saved smaller momentum stocks: Exelixis is down 58% from its 52-week high and
92% from its all-time high shortly after its IPO in early 2000; Halozyme is
down 60% from its high in early January. And so on. In the social media space,
the bloodletting has been ugly. The Social Media ETF SOCL is down 23%, but
stronger stocks like Facebook (down 16% from its high a month ago) paper over
individual fiascos, like Twitter, which has plummeted 48% from its peak last
year to below its IPO price.
LinkedIn
Sales Forecast Trails Estimates as Growth Slows - (www.bloomberg.com)
Shale Revolution Lures Trading Houses to U.S. Energy Assets - (www.bloomberg.com)
Shale Revolution Lures Trading Houses to U.S. Energy Assets - (www.bloomberg.com)
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