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The frames look similar to my Ray-Ban Wayfarers, except there’s a camera lens in the corner of the frames, a computer in the arms and tiny speakers that can play music and podcasts. Could These Ray-Bans Be 2023’s Biggest Tech Success?Įarlier this summer, I picked up a pair of Ray-Ban Stories smart glasses.(If you don’t know what that means, don’t worry! I cover it all in It’s an event I’ve been writing about for well over a year … and it’s almost here! In a little over a month, the Ethereum (ETH) network is upgrading from proof-of-work to proof-of-stake. Something big is coming in the crypto world.
The balance goldilocks economy upgrade#
Ethereum’s Upgrade Is Almost Here: What You Need to Know.Not too hot and not too cold.Īnd, more importantly, they keep the Fed and the bears on the sideline. In doing so, they prevent the economy from overheating. We know the Fed is concerned about an overheating economy, and these short episodes of COVID seem to tamp the brakes on hiring. In a weird twist, these short bursts of COVID might be doing the Fed’s work. There was a similar situation in December and January when the monthly payroll number dropped from its trend:Įventually, COVID cases started declining, and payroll growth picked up again. The seven-day average of 164,000 is nearing the peak reached in January. COVID cases have been on the rise since early July. It was also the weakest month since January.īut the weak jobs number should have been expected. There was a sharp slowdown in hiring from July, which was revised to 1.1 million from 943,000 added payrolls. However, these aren’t normal times, and this isn’t a normal market. In a normal environment, investors might be worried about a forthcoming economic slowdown. businesses created only one-third of the jobs expected. The S&P 500 closed the day flat while still up 0.5% for the week. If you read that, you might have dumped all your stocks. Of course, this was in large font and boldface type. One, in particular, proclaimed: “August jobs report badly missed expectations with 235,000 payroll gain as the Delta wave slams hiring.” I checked the financial news headlines after the report, and it looked bad on the surface. It would also keep the stock market bears at bay.įriday’s unemployment report, while less than economists expected, suggests Goldilocks might have found the perfect temperature for stocks… This Isn’t a Normal Market
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This ideal Goldilocks state would keep the Federal Reserve on the sidelines, allowing it to keep rates lower for longer.
The balance goldilocks economy software#
The stock market was in the middle of an unprecedented boom because new technology like PCs and software had rapidly increased economic productivity. The term was first used by an unnamed government official in 1996. Under these Goldilock’s conditions, the market tends to stay in a bullish uptrend.
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Not too hot to cause inflation and not too cold to cause a slowdown in growth. The term describes an ideal state for an economic system. This is stolen from the line in the popular children’s story where Goldilocks describes the best temperature of porridge. While an asset bubble is the most extreme manifestation of an overheated economy, generally speaking any time an economy overheats, it implies (at best) high inflation, as those dollars flooding into our economies "compete" with each other for goods and services - with such competition inevitably resulting in higher prices.A Goldilocks economy is not too hot and not too cold. What are the perils of an economy that overheats? Even the drones of the mainstream media can answer that question: bubbles. Just as the very wealthy tend to hoard the vast majority of every dollar they receive, the poor tend to do the opposite: They spend their money as fast as they receive it since (by definition) they have barely enough to survive. However, what is not intuitively obvious is why the opposite is also not desirable: economies that overheat and become "too hot." It's obvious to anyone (except everyone in the mainstream media, and their "experts") why it's an unmitigated evil to have too much wealth in the hands of the wealthy, since the economy becomes "too cold," shrivels and dies.