Economics and Investing:

Peter Schiff Exposes The Real Problem Facing The Fed – Link sent in by B.B.

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Millennials will not save the housing market: 50 percent of Millennials have less than $1,000 in savings. A large number are mired in student debt.

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Items from Professor Preponomics:

U.S. News

High Impact Market Possibilities After First Federal Reserve Rate Hike (24/7 Wall Street) Article Quote: “One very good thing about history is it is always there when you need to review how an economic event could play out against the existing landscape for investing.”

A Top JP Morgan Strategist Thinks the Fed “Misunderstood a Rate Hike’s Effect on Markets” (Business Insider) Hint: Although the U.S. economy may be able to adjust to a rate hike (and some will even benefit), the results of a rate hike may be non-linear. Article Quote: “If you hike rates, this slows the rate of lending and spending, helping to cool an economy that may be running too hot and approaching bubble territory. It’s not that simple…”

December 16th: When the End of the Bubble Begins (Contra Corner) Article Quote: “Yellen and her posse better pray for a monetary Tonto because they are riding headlong into an ambush in the canyons of Wall Street.”

Mises Institute’s Week in Review (Mises Institute) Article Quote: “Can the economy survive whatever small bump the Fed deals out? Perhaps, but any temporary stability doesn’t change the inherent instability of our current monetary regime.”

One Economist Thinks the Fed Shouldn’t Hike Rates (Business Insider) Commentary: Certainly among the myriad challenges in trying to understand “what comes next” are the following: 1) that the underlying assumptions of existing models may no longer apply (or may require adjustment); and 2) that the data on which decision makers rely has been corrupted by policies which result in market distortions for which there is no accounting. The bottom line is that no one knows for sure, but we’re all about to find out and there are likely to be a whole host of unintended consequences and market complications. Some of these effects may be felt immediately. Other effects may ripple through the system over the course of time. This is what happens when markets are engineered.

International News

Russia Plans $40 a Barrel Oil for the Next Seven Years as the Saudi Showdown Intensifies (The Telegraph) Article Quote: “Russia is battening down the hatches for a Biblical collapse in oil revenues, warning that crude prices could stay as low as $40 a barrel for another seven years.”

Personal Economics and Household Finance

Porch Pirates Stealing Holiday Deliveries (CNBC) Article Quote: “…a nasty practice that’s become common enough to warrant a new term: porch pirates.” …and a suggestion in follow up for SB readers: Consider a post office box for secured delivery of all your mail. Beyond Christmas deliveries, protection for your bank or other financial statements, bills, and other correspondence is important throughout the year.

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