Tuesday morning news drop
Lower interest rates encourage people to take more risks, in general. There is little question about this. By taking short-term interest rates to zero, the Bank of Canada and Federal Reserve have “forced” most investors to find better ways to allocate cash. Take a look at most “high-yield” savings accounts. At a yield of 2% it is enough for people to still keep a material cash position. At 0.5%, people will often look for other options. Riskier options. Lower interest rates are definitely pushing up the value of stocks. Although people were doing crazy things with their money in the 90’s when the 10-year was around 6%. While their is truth to this statement, people have different goals, risk tolerances, and time frames that are not impacted by macroeconomic forces.
One Number to Gauge Where the Economy Is Headed The yield on the 10-year Treasury note is often a reliable indicator of how Wall Street views the prospects of economic growth — especially when other data points send confusing signals. (New York Times)
People Now Spend More at Amazon Than at Walmart Proof that the online future has arrived: The biggest e-commerce company outside China has unseated the biggest brick-and-mortar seller. (New York Times)
A Massive Landslide Sends a Wake-Up to BC’s Mining Sector Melting glaciers in the ‘Golden Triangle’ expose new deposits. And pose huge risks. (Tyee)
Congress’s Financial Conflicts Go Beyond Rand Paul’s Wife A simple fix: Politicians, their staffers and their spouses shouldn’t trade stocks. (Bloomberg)
Delta Is Bad News for Kids More children are falling ill because more are being infected. More children are falling ill because more are being infected. (The Atlantic)
Taliban seize power amid chaos in Afghanistan All U.S. Embassy staff in Kabul, including the mission’s top diplomat, were being evacuated. (Politico)
The Runaway General: The Profile That Brought Down McChrystal The Rolling Stone profile of Stanley McChrystal that changed history (Rolling Stone)
‘South Park’ Co-Creator Matt Stone on his $900 Million Deal Moments after Stone signed his new deal with ViacomCBS, we spoke for about an hour about his plans for “South Park,” his disdain for “Space Jam 2” and what it means to have his biggest payday yet. (Bloomberg)
Will climate change lead to an island population explosion? This year’s fire season has been particularly destructive and may be on pace for another record as well as destroying the entire town of Lytton and many other homes around the interior. The increase in fire severity is not solely due to climate change of course, with our misguided forest management also sharing the blame. The combination of causes aside, it’s not a situation that will likely change for the foreseeable future. For those lucky enough to not be near those fires, the secondary effect has been the smoke. Endless choking smoke. (House Hunt Victoria)
