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Will the real financial bubble please stand up?

  As Congress begins to reconcile the different versions of financial stimulus passed by the House and Senate to relieve the devastation of the COVID-19 pandemic, we can only hope that someone brings a rigorous sense of financial reality to the table. There is a lot at stake beyond the immediacy of the devastating effects of the pandemic. Congress may once again be paving the path to the next financial crisis. Financial collapses typically follow the creation of economic bubbles, so it is useful to understand when bubbles are forming. Most bubbles are characterized by too much credit chasing overvalued assets. Many financial bubbles often masquerade for some time as strong economic growth, shedding their disguises only when it is too late to stop them from bursting. Just like the contestants in the popular 1960’s TV game show “To Tell the Truth,” which climaxed when the real baseball player or plumber was asked to stand up and surprise the audience

Japan Stocks falls on third straight session

Read more about Japan Stocks falls on third straight session on Business Standard. At closing bell, the 225-issue Nikkei Stock Average fell 121.07 points, or 0.42%, to 28,743.25. The broader Topix index of all First Section issues on the Tokyo Stock Exchange decreased 2.60 points, or 0.14%, to 1,893.58.

Wall Street surges on US jobs data, global equity markets regain ground

By Suzanne Barlyn NEW YORK (Reuters) - Wall Street and a gauge of global equity markets rose on Friday as investors cheered signs of economic strength in a report that showed faster-than-expected U.S. jobs growth, data that initially stoked inflation concerns. The session was marked by frantic trading across the globe. Asian markets dropped overnight. MSCI s all-country index was on its longest losing streak in six months before clawing back. All Wall Street s main indexes closed higher, bouncing back from early losses. Investors were spooked this week by rising interest rates, which offset optimism about an economic rebound. Microsoft rallied 2.2%, the biggest boost for the S&P 500.

Will excessive monetary and budget policy experimentation end in tears?

© Washington Post/Pool All economists agree that in the wake of the COVID-19 pandemic, the United States is engaged in a period of extraordinary monetary and budget policy experimentation. They also all agree that this experimentation is taking place at a time of a global “everything” equity price and credit market bubble of epic proportions. Where there is legitimate room for disagreement is in how the current economic policy experiment ends. While the Biden administration believes that this experiment will usher in a period of prolonged and stable economic growth, an influential group of distinguished economists, including former Treasury Secretary Larry Summers and former International Monetary Fund (IMF) chief economist Olivier Blanchard, believes that it will result in an unwelcome inflationary burst and another leg down in the economy. 

US Stocks surge on vaccines, stimulus optimism

The US stocks climbed up on Monday, 01 March 2021, with the S&P 500, the Dow index, and the broader Nasdaq all to settling higher, as encouraging updates on COVID-19 vaccines and fiscal stimulus bolstered bets over a swift economic recovery. At the close of trade, the Dow Jones Industrial Average index advanced 603.14 points, or 1.95%, to 31,535.51. The S&P500 index dropped 90.67 points, or 2.38%, to 3,901.82. The tech-heavy Nasdaq Composite Index added 396.48 points, or 3.01%, to 13,588.83. Major indices leapt at the open and remained in positive territory the entire day, as investors cheered the emergency use approval of Johnson & Johnson s single-dose Covid-19 vaccine by US regulators over the weekend, giving the nation a third shot to battle the world s worst outbreak.

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