Tagged: Economy

Journalists have spent many days and millions of words hashing over the news that banking giant JPMorgan Chase lost billions of dollars trading "synthetic" derivatives.

I am one of those journalists who, more or less, can understand what the bank says it was trying to do, i.e., hedge against loan losses. But here's what I have a hard time explaining:

What does this kind of complex trading have to do with the price of eggs?

In the past, you could ask what big bankers on Wall Street did for a living and get an answer that made sense in terms of the "real" economy. Their job was to help investors buy and sell stocks, and those transactions could spur companies to grow.

Greece keeps cutting its budget to help pay debts and avoid default but then its economy keeps contracting, making the problem worse. The new French President Francois Hollande wants to find a way to stimulate Europe's economy.

In a classic example of "on the one hand, on the other hand" economic analysis, the word that Japan's economy grew at a strong 4.1 percent annual rate in the first quarter is being followed by cautionary talk of slower growth for the world's third-largest economy in coming quarters.

"Japan's economic growth probably peaked in the first quarter and analysts forecast the pace of expansion will halve by year-end as the boost from earthquake reconstruction fades," Bloomberg News says.

If you're already a kale and lentils kind of person (we know there are a lot of frugal foodies out there) — you won't be surprised by this finding: According to a new study from some economists at the USDA, eating a healthy diet isn't necessarily more expensive than a diet loaded with sugar and fat. In fact, fruits and vegetables are often cheaper when you calculate the cost in a smarter way.

There were 370,000 first-time claims for unemployment insurance filed last week, the same number as during the week before, according to the Employment and Training Administration.

So, after a spike to a range around 390,000 per week in April, claims have slowed again to a pace that's roughly the lowest since the spring of 2008.

According to The Wall Street Journal, that suggests "the recently volatile labor market is stabilizing."