Factory output increases and Summers withdraws nomination for Fed head. Both have positive outcomes for market opening.
US factory output up 0.7 percent led by autos
US factories increased output in August by the most in eight months, helped by a strong month in the auto industry. The Associated Press reports that manufacturing rose 0.7 percent last month from July, the largest increase since December. It followed a 0.4 percent decline in July. Automakers increased production by 5.2 percent, after a 4.5 percent decline in July. Overall industrial production rose 0.4 percent.
Summers withdraws name for Fed job, Dow soars
Lawrence Summers pulled out of the contest for head of the Federal Reserve, according to the Wall Street Journal. Summers apparently withdrew so the country would not have to face an acrimonious nomination process. Another leading contender, Janet Yellen, has received enormous support from Democrats in Congress and economists. President Obama, however, seems to be annoyed by the support for Yellen. Summers was expected to quickly wind down the quantitative easing program if he were selected. International markets responded positively to the withdrawal. The Dow was up 150 points at opening.
Bill Gates stays on top of list of America’s richest
Forbes released its annual list of the top 400 richest Americans, with most of the wealthy seeing their riches grow. According to the Associated Press, Microsoft Corp. co-founder, Bill Gates,remains America’s richest man with a net worth of $72 billion. Warren Buffett, the head of Berkshire Hathaway is second with $58.5 billion and the founder of Oracle, Larry Ellison is third with $41 billion. The 400 people on the list posted a combined net worth of $2 trillion, up from $1.7 trillion a year ago.
Germans export Grandma to Poland due to nursing home costs
One in five Germans is considering moving their elderly parents to nursing homes in Poland, according ti Bloomberg. The primary reason is the high cost of nursing home care in Germany, coupled with the poor quality. Despite the fact that the government pays for medical expenses in Germany, the quality of care in Poland exceeds what is available in Germany and those who can afford it have been taking their elderly parents to their neighboring country. The United Nations estimates that the world’s population of people older than age 60 will triple to almost 2 billion by 2050.
Countries with the most Millionaires
A new report by the Boston Consult Group indicates that global wealth grew by about 8 percent in 2010 to $121.8 trillion. USA Today reports that amount is expected to increase to $162 trillion by 2015. The countries with the most millionaires have high GDPs, with only a few falling outside of the top ten for all nations. Most have market driven economies and leads in at least one industry. The top ten include: 10. Hong Kong; 9. France; 8. Italy; 7. Taiwan; 6. Switzerland; 5. Germany; 4. United Kingdom; 3. China; 2. Japan; 1. USA.
Catherine S. McBreen is President of Millionaire Corner. McBreen plans and develops content for Millionaire Corner. Catherine balances editorial content to meet the informational needs of both new and seasoned investors. She designs special monthly surveys on topical issues affecting the economic environment.
McBreen has a B.S. in speech communications from Northwestern University and a J.D. from DePail University College of Law. She is a member of the American Bar Association, the Illinois Bar Association, and the Chicago Bar Association.
Well-known for her expertise in the affluent and retirement arenas, McBreen is a frequent speaker at industry conferences. She has been quoted widely by the financial media, including The Financial Times, The Wall Street Journal, Research, Private Asset Management, On Wall Street, Reuters, Bloomberg News, The Dow Jones Newswires and Worth. Cathy has appeared as a guest on CNBC Closing Bell, First Business Morning News, Neal Cavuto at Fox Business News, ABC and CBS radio.
McBreen is co-author with Spectrem President George H. Walper, Jr. of the book "Get Rich, Stay Rich, Pass It On: The Wealth-Accumulation Secrets of America's Richest Families" (Portfolio, January 2008)
Catherine is the mother of four and is involved in many school and community events.