Author Archives: John Thomas

Trump, Auto Unions not Happy with GM Downsizing

There are two sides to every coin. In this case, you find General Motors and Wall Street in general on one side, and President Trump and the unions on the other. Strange partnerships perhaps, but each will do what is in their best interests. Let’s begin by looking at what happened. General Motors said Monday it will cut up to ...

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General Electric’s Woes Ripple through Corporate Bond Market

New CEO of GE Larry Cup

A feeling of angst is in the air in the credit markets on Wall Street. The venerable blue chip General Electric Co. will sell assets with “urgency” to reduce its high debt, Chief Executive Officer Larry Culp (just appointed 1 October) said on Monday, as GE shares tumbled as much as 10 percent and the cost of insuring its debt ...

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Russia Dismissing Dollar after U.S. Imposed Sanctions

Recent U.S. sanctions against Russia for, among other things, its actions in the Ukraine, have led President Putin to attempt to downplay the role of the dollar in the domestic Russian economy. While on the surface it may not seem significant that the Treasury Department announced sanctions against two individuals and one entity for “serious human rights abuses” and sanctions ...

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Federal Reserve Criticized by Wall Street on Balance Sheet Unwind

Federal Reserve

Whether it is President Trump or the powers that be on Wall Street, the Federal Reserve is taking constant heat over interest rates, its balance sheet, and just about everything else it does. Trump has tweeted many times of his disdain for the Fed’s desire to raise rates and potentially cool the economic growth. He has also questioned Chairman Powell ...

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Japan Opening Immigration Doors to Confront Labor Shortage

The Japanese economy is a microcosm of immigration and labor shortages that are hindering our own economic growth in the United States. With U.S. unemployment at a point that is believed to be normalized, the ability to obtain skilled labor is difficult to find, especially for small businesses. This is a moderation of epic proportions for the Japanese, who possess ...

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Corporate Bonds are becoming harder to come by

Individuals have debt cycles that coincide with macroeconomic issues and monetary policy. While these are the drivers, the average American really only focuses or knows one thing; interest rates. Life choices are made more difficult as rates rise. That new car or house that was on the horizon has become more difficult to afford. This premise is also true in ...

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Warren Buffett and Berkshire Hathaway move into Fintech

The “Oracle of Omaha” who made his fortune from the ideology of Graham and Dodd, is moving past Coca-Cola, Bank of America and Kraft Heinz to fintech investments made by his two lieutenants, Todd Combs and Ted Weschler. If you are interested, Berkshire Hathaway’s latest 13F filing with the SEC for Q2 2018 looks as follows. Berkshire has invested about ...

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Is there a Slump in Start-Up Companies?

Say it isn’t so. The little engines that could, which are small businesses across America, may be on a slight demise. Economists say big businesses like Amazon, Google, and Facebook are hurting entrepreneurship and creating a startup slump in America, according to a report in The New York Times. Let’s look at the numbers. In 2015, some 414,000 new businesses were ...

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The Future of Bitcoin Futures

The mad frenzy that was Bitcoin at the turn of the calendar year has not evolved quite as expected. The cryptocurrency enthusiasts sat glued to their computer screens anticipating the start of trading on the Chicago Board of Options Exchange (Cboe) at 5:00 o’clock central on December 10th. This was the climax of nirvana pursuant to the Cboe’s statement in ...

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