January 14, 2015 - Every year since the end of the financial crisis it seems like economic pundits have proclaimed that “this is the year rates will rise.” We are now six years past the crisis, and the Federal Reserve still hasn’t raised overnight rates. Equally interesting is that longer-term US Treasury yields have fallen precipitously of late, with the 10-year falling below 2% and the 30-year at ~2.50%.
November 14, 2013 - While it may be a surprise to some in the startup community, the last few years have seen record high profit margins for the largest U.S. corporations. In fact, over the last few years, corporate after tax profits accounted for the largest ever share of gross domestic product (GDP). As encouraging as this may seem, a major reason for this stems from the low wages that employees are now earning. In fact, as of 4Q 2012, total wages fell to a record low of 43.5% of GDP. Historically, wages typically account for roughly 50% of GDP. So, in short, corporations have never been more profitable and employees are getting an increasingly smaller share of the pie.