18/08/2019

The 2007 Style Credit Downgrades Have Begun

by John Galt August 18, 2019 22:30 ET The nightmare has returned. Despite the fact that it is “different this time” as housing is not the central reason for our economic issues, the story sounds eerily familiar. First and foremost this story from the Nikkei Asian Review which dropped earlier today: Credit downgrades accelerate on all sides in US-China trade war How bad is it per the article? Here is a brutal excerpt: Credit rating agencies have downgraded listed companies worldwide at rarely seen levels this year, underscoring the risks to the…


Trump’s August Stock Market Fake Out Bounce

by John Galt August 18, 2019 22:00 ET President Donald Regalus Postulus Magnanimous Renaldo Trumpus hereby declares that while the Congress is in recess, the American Stock Markets shall no longer be allowed wild swings or dramatic declines until after September 5, 2019. Or something like that. As one of my favorite economists said this past Friday: The White House is now delaying the tariffs and removing some items. Did some acronym called the SPX cause someone to blink?— David Rosenberg (@EconguyRosie) August 13, 2019 Ummm, yeah!!!!! So what has happened…


A Veiled Threat by China to Blockade Taiwan

by John Galt August 18, 2019 21:35 ET Just when one thinks are beginning to calm down between the United States and China, the U.S. decides to sell upgraded F-16 fighter planes to Taiwan. This brings back memories of something the Chinese military leadership hinted at and although it does take a bit of searching but fortunately RT has not been totally eradicated from the internet yet: Then today in The Global Times, an organ of the Chinese Communist Party, this beauty of an article appears: US F-16 sale to Taiwan…


Kudlow’s Ominous Interviews on Today’s Sunday Shows

by John Galt August 18, 2019 13:15 ET In what can only be called a weird twist of irony, Larry Kudlow, who just happens to be President Trump’s Director of the National Economic Council in the White House said this on December 6, 2007 (From the National Review): There ain’t no recession. Sadly for Mr. Kudlow, the NBER disagreed with home some 24 months later and pegged the start of the “Great Recession” as starting in December of 2007. Many of us proclaimed it started in October of 2007, but that’s…


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