(1) The So-Called Great Times: Many Millennial Men Unemployed. Jeanna Smialek writes an article for Bloomberg to examine why 500,000 millennial men are missing from the workforce. Perhaps they want to avoid the reduced pay with increasing (and undercompensated) demands.
The excuses that the economists offer in the article border on the nonsensical. Someone is going to incur debts to play video games? People have to live with their parents because the wages paid for work is insufficient to pay for first and last month rent and a security deposit for an apartment.
Other social changes could be exacerbating the trend. Better video games might make leisure time more attractive, some economists hypothesize, and opioid use might make many less employable. Young adults increasingly live with their parents, and cohabitation might be providing a “different form of insurance,” said Erik Hurst, an economist at the University of Chicago.
(2) Globalization and the U.S. Worker. (Note: This item is from a previous post. Still it is relevant here.) An investment professional wrote a book on the glut of labor that globalization caused. The United States did not prepare any programs to compensate for the job losses and decreases in income.
Daniel Alpert, “The Age of Oversupply.”
The Federal Reserve Board (Board) publishes a weekly digest of its activities on its website. The digest is called the H.2 Release and is published every Thursday. The release for the week ending November 3, 2018, is below.
H.2 Release–Actions of the Board, Its Staff, and the Federal Reserve Banks; Applications and Reports Received
|Change in Bank Control||CapStar Financial Holdings, Inc., Nashville, Tennessee — change in bank control of CapStar Financial Holdings, Inc., and its subsidiary, CapStar Bank, Nashville.
-Permitted, November 2, 2018
|Forms||Forms — initial Board review to extend with revision the Consolidated Holding Company Report of Equity Investments in Nonfinancial Companies (FR Y-12) and Annual Report of Merchant Banking Investments Held for an Extended Period (FR Y-12A).
-Proposed, October 29, 2018
Forms — initial Board review to extend without revision the Notice Requirements Associated with Regulation W (FR W).
-Proposed, November 1, 2018
|Personnel||Division of Financial Management — appointment of Karen Vassallo as associate director.
-Announced, November 2, 2018
|Regulations and Policies||Derivatives Contracts — publication for comment of an interagency proposal that would implement a new method for calculating the exposure amount of derivative contracts under the agencies’ regulatory capital rules.
-Approved, October 30, 2018
Reduced Reporting for Depository Institutions — publication for comment of an interagency proposal to streamline regulatory reporting for qualifying small institutions, in accordance with the Economic Growth, Regulatory Relief, and Consumer Protection Act.
-Approved, October 29, 2018
Regulations and Policies — (1) two proposed rules to establish a revised framework for tailoring prudential standards to the risk profiles of large U.S. banking organizations; and (2) initial Board review to amend the Consolidated Financial Statements for Holding Companies (FR Y-9C), Parent Company Only Financial Statements for Large Holding Companies (FR Y-9LP), Capital Assessments and Stress Testing (FR Y-14), Complex Institution Liquidity Monitoring Report (FR 2052a), and Banking Organization Systemic Risk Report (FR Y-15) information collections.
-Approved, October 31, 2018
Supervisory Rating Systems — (1) final rule adopting a new rating system for large financial institutions and (2) notice to apply the Board’s existing supervisory rating system to certain savings and loan holding companies.
-Approved, November 1, 2018
Federal Reserve Board: Balance Sheet (H.4.1 Release)
The Board publishes data of factors affecting reserve balances. The digest is called the H.4.1 Release, and they are published every Thursday (or the next business day if the publication date falls on a federal holiday). The release for November 8, 2018, is below.
[Note: The blog will cover the line titled “Total Factors Supplying Reserve Funds.”]
H.4.1 Release–Factors Affecting Reserve Balances
Total factors supplying reserve funds (as of November 7, 2018): $4,189,782 (in millions of dollars). (On September 26, 2007, this amount was $900,473 (in millions of dollars)).
(See the release for further information.)