Why do corporations genuflect to the left wing screaming porkers? Many of them have experienced a significant amount of lost business after their announcements of this new policy. No reasonable director would vote to reduce his sales by 50%. The answer is the Wall Street set again. Many of these firms want to borrow significant amounts of money for various reasons during the year. The banks have begun requiring the ESG formula to be a ruling factor regarding their loan portfolios. If the corporations wish to receive a loan, they have to accept these conditions. This is the latest attempt for total domination of the society.
In this week’s installment of “how big of a lie can we sell to the American people” the Biden team and their propaganda ministry are redefining what a recession is. The threshold for declaring a recession has historically been accepted as two consecutive quarters in which the gross domestic product (GDP) has declined. Our GDP declined 1.6 percent in the 1st quarter and .9 percent in the 2nd quarter. Normally that would meet the criteria for a few bad news cycles.
Remember, markets are forward-looking to what might happen 6 to 18 months into the future. Most of the Fed’s rate hikes are already priced into the markets. The market is already thinking that the induced recession caused by the rate hikes will force the Fed to only lower them to fight the evident recession they created. More free money is coming – fuel for the markets. This is what the markets are digesting now.
Is this grandfatherly Boomer advice from Cramer, good advice? Yes in principle, but it won’t be nearly as effective for Gen Zers as it was for Boomers – something Cramer failed to address. What has worked in the past for Boomers may not work for Gen Z in the future. Consider the following that has been occurring for decades.
Everybody was thrilled to get stimulus checks in the mail during the COVID-19 pandemic. “It’s free money!” many exclaimed. But nothing in life is free. This includes “free” things handed out by the government. According to estimates by Bloomberg Economics, US households will spend $5,200 more this year than they did last year on the same consumption basket. That breaks down to $433 extra in expenditures every single month.
It would appear that the benchmark was recalculated based on changing the total labor force from 170 million to 146 million “based on deaths.” That would equate to 24 million people in the labor force who died or were permanently disabled. In addition, they revised the algorithm to include an estimate of those employees exempt from unemployment insurance claiming this data has lagged for two years.
The now-notorious Chinese real estate giant Evergrande missed the coupon payments on its bonds the other day. Evergrande builds sixty-story apartment towers made (mostly) of sand. Somehow, the bag-holders even in China, where buying real-estate has enjoyed the rush of novelty in recent years, begin to scent the odor of failure in that bloated corpus of fraud.
It’s important to remember that the year-over-year changes take the economic disaster that was 2020 into account. Consumers that were already worried about the economy due to the Covid lockdowns and/or massive government spending in 2020 not only didn’t change their minds, but also grew even more worried about the state of the economy.
By author Tom Williams One month after the dismal April 2021 jobs report, the subpar… Read More »Biden Dismal May Jobs Report, Another Bonanza for Waiters, Bartenders, and Short-order Cooks