Wells Fargo's pressure-cooker sales culture comes at a cost - LA Times: "Wells Fargo branch manager Rita Murillo came to dread the phone calls.
Regional bosses required hourly conferences on her Florida branch's progress toward daily quotas for opening accounts and selling customers extras such as overdraft protection. Employees who lagged behind had to stay late and work weekends to meet goals, Murillo said.
Then came the threats: Anyone falling short after two months would be fired.
"We were constantly told we would end up working for McDonald's," said Murillo, who later resigned. "If we did not make the sales quotas … we had to stay for what felt like after-school detention, or report to a call session on Saturdays."
Wells Fargo & Co. is the nation's leader in selling add-on services to its customers. The giant San Francisco bank brags in earnings reports of its prowess in "cross-selling" financial products such as checking and savings accounts, credit cards, mortgages and wealth management. In addition to generating fees and profits, those services keep customers tied to the bank and less likely to jump to competitors."
'via Blog this'
Thursday, September 29, 2016
Wednesday, September 28, 2016
Sucker Punch On Main Street - Disturbing Facts About The Fed's Phony Housing "Recovery" | Zero Hedge
Sucker Punch On Main Street - Disturbing Facts About The Fed's Phony Housing "Recovery" | Zero Hedge: "The Fed’s claim of trying to help the typical consumer is hogwash. The benefits of the low interest rate policy have flowed only to the upper income strata. In our monthly updates of our “Thanks Fed For Helping the Average Guy” we see that the chance of the “average guy” to buy a new home remains virtually nil. Not only has there been no recovery in homes priced under $200,000, sales in that price range have essentially disappeared in spite of the world’s major central banks pushing mortgage rates down. Builders no longer have any interest in producing product in that price range because demand has weakened so much at that level. People at the reported median US household income simply can’t afford to buy houses regardless of the fact that they may be borderline qualified.
Prior to the housing crash, most new homes sold were in the under $200,000 price range. Since 2007, mortgage rates have been cut nearly in half. Yet production and sales of homes in the under $200,000 range have continued falling, now down 61% since 2007."
'via Blog this'
Prior to the housing crash, most new homes sold were in the under $200,000 price range. Since 2007, mortgage rates have been cut nearly in half. Yet production and sales of homes in the under $200,000 range have continued falling, now down 61% since 2007."
If monetary policy were helping the housing market, the rate of homeownership should be at least stable. Instead, as mortgage rates have been consistently suppressed since 2007, homeownership has fallen concurrently.
The problem is that as the Fed and its cohort central banks have been busy pushing down long term interest rates, that has pushed house prices up so fast that there has been no increase in affordability.
'via Blog this'
Bridgewater Calculates How Much Time Central Banks Have Left | Zero Hedge
Bridgewater Calculates How Much Time Central Banks Have Left | Zero Hedge: "
'via Blog this'
How much longer can this charade continue?
While many would be quick to answer "indefinitely" that is not true, because with every bond, ETF or stock, purchased by central bankers they come to the point where they either monetize the entire lot, or they increasingly impair the functioning of the capital markets (just ask the dozens of marquee hedge funds that have shuttered in recent years).
Luckily, in a recent analysis, Ray Dalio's Bridgewater asked precisely this question, and even better, provided the answer to how much time is left until both the ECB and BOJ hit the limits on their existing programs.
As the chart below shows, assuming no changes to existing programs, the ECB and the BOJ, the two central banks most actively monetizing debt currently, have 8 and 26 months respectively, if they do no changes to their programs.
However, if incremental easing is layered on, like expanding the scope of their bond buying programs or purchasing equities even more aggressively, the total rises substantially. The final answer: 68 months, or just above 5 and a half years, in the case of the ECB, were it to steamroll all political opposition and monetize virtually every possible bond (and 20% of the equity market), and 48 months, or 4 years, in the case of the BOJ.
Which means for those market participants who have already torn most of their hair out from participating in a centrally planned "market" where nothing makes sense, get ready because, the insanity may last another 4 or 5 years longer...
'via Blog this'
Sunday, September 25, 2016
Former Wells Fargo employees file $2.6 billion suit over scam - NY Daily News
Former Wells Fargo employees file $2.6 billion suit over scam - NY Daily News: "Wells Fargo’s spiraling “sandbagging” scam might get a lot more expensive for the nation’s biggest bank.
Two former employees filed a $2.6 billion class action lawsuit last week accusing the bank of demoting or ousting workers who failed to meet “unrealistic quotas” that drove other employees to rip off customers.
“Wells Fargo knew that their unreasonable quotas were driving these unethical behaviors that were used to fraudulently increase their stock price and benefit the CEO at the expense of the low level employees,” the suit says.
The lawsuit, filed Thursday in California Superior Court in Los Angeles County, says the bank pressured workers to open 10 accounts daily and punished those who fell short. It accuses Wells Fargo of wrongful termination, unlawful business practice and failure to pay wages and overtime."
'via Blog this'
Two former employees filed a $2.6 billion class action lawsuit last week accusing the bank of demoting or ousting workers who failed to meet “unrealistic quotas” that drove other employees to rip off customers.
“Wells Fargo knew that their unreasonable quotas were driving these unethical behaviors that were used to fraudulently increase their stock price and benefit the CEO at the expense of the low level employees,” the suit says.
The lawsuit, filed Thursday in California Superior Court in Los Angeles County, says the bank pressured workers to open 10 accounts daily and punished those who fell short. It accuses Wells Fargo of wrongful termination, unlawful business practice and failure to pay wages and overtime."
'via Blog this'
Wednesday, September 21, 2016
Cramer on the Fed raising rates: Expect a strong signal for a hike in December
Cramer on the Fed raising rates: Expect a strong signal for a hike in December: "Ahead of the Federal Reserve policy meeting on Wednesday, CNBC's Jim Cramer said he believes the Fed will signal it plans to raise interest rates at its next meeting in December.
"I expect a very strong statement that says, 'Listen, guys, this is what we're gonna do ... we did it last year at this time. We're gonna do it again,'" Cramer said on "Squawk on the Street.
He added, "We've got to raise rates by December, unless there is some calamity.""
'via Blog this'
"I expect a very strong statement that says, 'Listen, guys, this is what we're gonna do ... we did it last year at this time. We're gonna do it again,'" Cramer said on "Squawk on the Street.
He added, "We've got to raise rates by December, unless there is some calamity.""
'via Blog this'
BOJ overhauls policy focus, sets target for government bond yields | Reuters
BOJ overhauls policy focus, sets target for government bond yields | Reuters: "The Bank of Japan made an abrupt shift on Wednesday to targeting interest rates on government bonds to achieve its elusive inflation target, after years of massive money printing failed to jolt the economy out of decades-long stagnation.
While the BOJ reassured markets it would continue to buy large amounts of bonds and riskier assets, the policy reboot appeared to open the door for an eventual winding down of its huge asset purchases, and tried to repair some of the damage caused by its shock move to negative rates early this year.
"The impression is that the BOJ is starting to pull back some of its troops from the battlefront," said Katsutoshi Inadome, senior fixed-income strategist at Mitsubishi UFJ Morgan Stanley Securities.
The BOJ's increasingly radical stimulus efforts are being closed watched by other global central banks which are also struggling to revive growth, such as the European Central Bank. Many investors fear central banks have nearly exhausted the limits of what monetary policy can do, putting pressure back on governments to step up spending.
In setting rate targets for financial institutions' excess cash deposits and 10-year government bonds, the BOJ looked set to exert unprecedented control over bond market rates to try to spark life into the world's third-largest economy.
Japanese stocks rose nearly 2 percent after the move, which could ease profit pressure on banks and insurers from ultra-low interest rates, though analysts doubted the impact would trickle down much into the broader economy.
In a bid to reassure nervous markets, the BOJ maintained its 0.1 percent negative rate and said it would continue buying government bonds at the current pace for the time being.
But it dropped its explicit target of increasing base money, the amount of money it prints, by an annual 80 trillion yen ($788 billion), in what some analysts said was a tacit admission its aggressive asset-buying was becoming unsustainable.
Under its new framework, the BOJ will buy long-term government bonds as necessary to keep 10-year bond yields at current levels of around zero percent.
If it succeeds, economists believe that would open the door to scaling back its bond purchases, but still leave it the option to buy more bonds or cut rates deeper into negative territory if economic conditions deteriorate.
The BOJ says that by directly targeting short- and long-term rates, it can more efficiently reduce borrowing costs while allowing for a rise in super-long yields, which would help firms like insurers give pensioners better investment returns."
'via Blog this'
While the BOJ reassured markets it would continue to buy large amounts of bonds and riskier assets, the policy reboot appeared to open the door for an eventual winding down of its huge asset purchases, and tried to repair some of the damage caused by its shock move to negative rates early this year.
"The impression is that the BOJ is starting to pull back some of its troops from the battlefront," said Katsutoshi Inadome, senior fixed-income strategist at Mitsubishi UFJ Morgan Stanley Securities.
The BOJ's increasingly radical stimulus efforts are being closed watched by other global central banks which are also struggling to revive growth, such as the European Central Bank. Many investors fear central banks have nearly exhausted the limits of what monetary policy can do, putting pressure back on governments to step up spending.
In setting rate targets for financial institutions' excess cash deposits and 10-year government bonds, the BOJ looked set to exert unprecedented control over bond market rates to try to spark life into the world's third-largest economy.
Japanese stocks rose nearly 2 percent after the move, which could ease profit pressure on banks and insurers from ultra-low interest rates, though analysts doubted the impact would trickle down much into the broader economy.
In a bid to reassure nervous markets, the BOJ maintained its 0.1 percent negative rate and said it would continue buying government bonds at the current pace for the time being.
But it dropped its explicit target of increasing base money, the amount of money it prints, by an annual 80 trillion yen ($788 billion), in what some analysts said was a tacit admission its aggressive asset-buying was becoming unsustainable.
Under its new framework, the BOJ will buy long-term government bonds as necessary to keep 10-year bond yields at current levels of around zero percent.
If it succeeds, economists believe that would open the door to scaling back its bond purchases, but still leave it the option to buy more bonds or cut rates deeper into negative territory if economic conditions deteriorate.
The BOJ says that by directly targeting short- and long-term rates, it can more efficiently reduce borrowing costs while allowing for a rise in super-long yields, which would help firms like insurers give pensioners better investment returns."
'via Blog this'
Saturday, September 17, 2016
California added 63,000 jobs in August, 42% of U.S. total - LA Times
California added 63,000 jobs in August, 42% of U.S. total - LA Times: "California’s strongest industries were government, professional services and trade, transportation and utilities, which together recorded a net hiring gain of 51,300 positions.
Manufacturing, long the bulwark of California’s economy, shrank again in August as 3,400 net jobs were cut. Since the depths of the recession in 2009, the state’s manufacturers added jobs at a rate of 2.5%. The country as a whole has seen the sector grow twice as fast.
The loss of factory jobs is particularly harsh for the state’s poorer regions, such as the Inland Empire, that depend more on blue-collar jobs.
In San Bernardino and Riverside counties, unemployment stood above 6% in August. In Imperial County, unemployment reached 23% — the highest rate in the state. "
'via Blog this'
Manufacturing, long the bulwark of California’s economy, shrank again in August as 3,400 net jobs were cut. Since the depths of the recession in 2009, the state’s manufacturers added jobs at a rate of 2.5%. The country as a whole has seen the sector grow twice as fast.
The loss of factory jobs is particularly harsh for the state’s poorer regions, such as the Inland Empire, that depend more on blue-collar jobs.
In San Bernardino and Riverside counties, unemployment stood above 6% in August. In Imperial County, unemployment reached 23% — the highest rate in the state. "
'via Blog this'
Thursday, September 15, 2016
US weekly jobless claims total 260,000 vs 265,000 estimate
US weekly jobless claims total 260,000 vs 265,000 estimate: "Initial claims for state unemployment benefits edged up 1,000 to a seasonally adjusted 260,000 for the week ended Sept. 10, the Labor Department said on Thursday. Claims for the prior week were unrevised.
Economists polled by Reuters had forecast first-time applications for jobless benefits rising to 265,000 in the latest week.
It was the 80th straight week that claims remained below the 300,000 threshold, which is associated with robust labor market conditions. That is the longest stretch since 1970, when the labor market was much smaller."
2 Questions-
1. How many times have Economists been correct? And how many times have they created jobs?
Man, they'll spin this crap any way they can. You gotta love the "since 1970" statement.
Hey, dumbass, this country had it significantly better even during the gasoline crisis. At least the only thing starving was their gas guzzler!
'via Blog this'
Economists polled by Reuters had forecast first-time applications for jobless benefits rising to 265,000 in the latest week.
It was the 80th straight week that claims remained below the 300,000 threshold, which is associated with robust labor market conditions. That is the longest stretch since 1970, when the labor market was much smaller."
2 Questions-
1. How many times have Economists been correct? And how many times have they created jobs?
Man, they'll spin this crap any way they can. You gotta love the "since 1970" statement.
Hey, dumbass, this country had it significantly better even during the gasoline crisis. At least the only thing starving was their gas guzzler!
'via Blog this'
US retail sales fell 0.3% in Aug vs. 0.1% drop expected
US retail sales fell 0.3% in Aug vs. 0.1% drop expected: "U.S. retail sales fell more than expected in August amid weak purchases of automobiles and a range of other goods, pointing to cooling domestic demand that could further diminish expectations of a Federal Reserve interest rate increase next week.
The Commerce Department said on Thursday retail sales declined 0.3 percent after an upwardly revised 0.1 percent gain in July. Retail sales in July were previously reported to have been unchanged."
They can't even give the shit away anymore, perhaps that's the real upshot. The Idiot US consumer has eaten his fill from the Govt. trough of chachkis, and what remains are the ones who aren't buying the "new car", "new house", "new reaming" story!
Here comes helicopter money! Let the good times roll with just throwing cash at us! All aboard for the final stage of Fedonomics !
'via Blog this'
The Commerce Department said on Thursday retail sales declined 0.3 percent after an upwardly revised 0.1 percent gain in July. Retail sales in July were previously reported to have been unchanged."
They can't even give the shit away anymore, perhaps that's the real upshot. The Idiot US consumer has eaten his fill from the Govt. trough of chachkis, and what remains are the ones who aren't buying the "new car", "new house", "new reaming" story!
Here comes helicopter money! Let the good times roll with just throwing cash at us! All aboard for the final stage of Fedonomics !
'via Blog this'
Wednesday, September 14, 2016
Bond Markets Hit Another 'Ukrainian Chicken Moment' - Bloomberg View
Bond Markets Hit Another 'Ukrainian Chicken Moment' - Bloomberg View: "The mood music currently playing in the bond market is eerily reminiscent of what preceded the bankruptcy of Lehman Brothers and the financial destruction that followed. Back then, the financial community was sleepwalking into disaster, with few investors sounding the alarm bells until it was too late. Now, though, there's a chorus of smart investors pointing to the risks of complacency; as recently as Aug. 31, bond guru Bill Gross warned that investors were "treading on thin ice." It may turn out that paying for the privilege of lending to a European drug company makes about as much sense as handing your money to a Ukrainian chicken farmer."
'via Blog this'
'via Blog this'
US economy could lose up to 5 pct if Donald Trump beats Hillary Clinton in presidential election
US economy could lose up to 5 pct if Donald Trump beats Hillary Clinton in presidential election: "A win for U.S. presidential candidate Donald Trump could have grave implications for the world's largest economy, according to Oxford Economics.
If Trump were able to implement all of his proposed policies, that would undermine global economic growth and knock 5 percent off where U.S. gross domestic product (GDP) would otherwise be in 2021, U.K.-based economists Jamie Thompson and Sarah Maxwell said in a note Tuesday. That would erase as much as $1 trillion off the forecast size of the U.S. economy in 2021, Thompson said via email.
"The consequences are far-reaching," the economists said. Oxford Economics is an independent advisory firm, originally founded in 1981 as a commercial venture with Oxford University's business college.
In what the economists call their "adverse Trump scenario" of substantially all of the Republican candidate's stated policies being enacted, the slowdown would be far deeper than in a scenario of partial policy enactment and growth would remain subdued longer. Oxford Economics' baseline forecasts were for the U.S. economy to grow 1.5 percent to 2.3 percent a year for 2016-2021."
'via Blog this'
If Trump were able to implement all of his proposed policies, that would undermine global economic growth and knock 5 percent off where U.S. gross domestic product (GDP) would otherwise be in 2021, U.K.-based economists Jamie Thompson and Sarah Maxwell said in a note Tuesday. That would erase as much as $1 trillion off the forecast size of the U.S. economy in 2021, Thompson said via email.
"The consequences are far-reaching," the economists said. Oxford Economics is an independent advisory firm, originally founded in 1981 as a commercial venture with Oxford University's business college.
In what the economists call their "adverse Trump scenario" of substantially all of the Republican candidate's stated policies being enacted, the slowdown would be far deeper than in a scenario of partial policy enactment and growth would remain subdued longer. Oxford Economics' baseline forecasts were for the U.S. economy to grow 1.5 percent to 2.3 percent a year for 2016-2021."
'via Blog this'
Chanos: Trump was my easiest short, like 'ocean liners hitting icebergs'
Chanos: Trump was my easiest short, like 'ocean liners hitting icebergs': "It was unclear exactly which companies from Trump's empire Chanos shorted. But Trump companies have filed for bankruptcy multiple times, and stock and bondholders for his Atlantic City casinos lost more than $1.5 billion in the 1990s, according to The New York Times."
'via Blog this'
'via Blog this'
State pension funds are awash in red ink: Here's your share
State pension funds are awash in red ink: Here's your share: "State pension funds are awash in red ink: Here's your share"
'via Blog this'
Tuesday, September 13, 2016
Wells Fargo CEO pledges to stamp out bad behavior. ‘I feel accountable.’ - The Washington Post
Wells Fargo CEO pledges to stamp out bad behavior. ‘I feel accountable.’ - The Washington Post: "Stumpf said Wells Fargo has already taken several steps to strengthening its compliance programs in the wake of the scandal, which resulted in $185 million in fines last week. The bank also dismissed 5,300 employees, including some managers, who were accused of creating sham accounts.
“On average 1 percent [of employees] have not done the right thing and we terminated them. I don’t want them here if they don’t represent the culture of the company,” Stumpf said.
“We’re not sitting idly by,” he said, “we are investing in controls and training. . .We’re making big investments and my goal is perfection.”"
What a complete crock of shit! I can personally attest to the anvil-like pressure for fear of termination that Personal Bankers, their Supervisors and related mortgage reps were put under to cross sell or else! Not just here but also at Bank of America! So they're up next on the law suit list, and it wouldn't surprise me a bit if a class action evolved out of this for people that were terminated unfairly to save upper management and the bank's "reputation" !
So classic!
'via Blog this'
“On average 1 percent [of employees] have not done the right thing and we terminated them. I don’t want them here if they don’t represent the culture of the company,” Stumpf said.
“We’re not sitting idly by,” he said, “we are investing in controls and training. . .We’re making big investments and my goal is perfection.”"
What a complete crock of shit! I can personally attest to the anvil-like pressure for fear of termination that Personal Bankers, their Supervisors and related mortgage reps were put under to cross sell or else! Not just here but also at Bank of America! So they're up next on the law suit list, and it wouldn't surprise me a bit if a class action evolved out of this for people that were terminated unfairly to save upper management and the bank's "reputation" !
So classic!
'via Blog this'
U.S. household income posts record surge in 2015, poverty falls | Reuters
U.S. household income posts record surge in 2015, poverty falls | Reuters: "Chris Christopher, head of consumer economics for IHS Global Insight, said he expected incomes to continue to gain ground through 2017 with higher employment and modest inflation. The unemployment rate has declined from a peak of 10 percent in October 2009 to 4.9 percent last month.
With incomes rising, the number of people living in poverty fell 3.5 million to 43.1 million last year. That pushed the 2015 poverty rate down to 13.5 percent from 14.8 percent in 2014.
The poverty rate has continued to edge down since hitting a 17-year high in 2010. The latest drop is the largest percentage point decline since 1999, Census officials said.
In another encouraging sign, the number of residents without health insurance dropped to 29 million last year from 33 million in 2014. Nearly 91 percent of people in the United States had health coverage, up from 89.6 percent the previous year.
"The three key indicators of well-being ... all moved decisively in the right direction in 2015 - the first time that has occurred in nearly two decades," said Robert Greenstein, president of the left-leaning Center on Budget and Policy Priorities.
An alternative measure of poverty that takes into account non-cash benefits, including food stamps and refundable tax credits, fell one-tenth of a percentage point to 14.3 percent.
Analysts cautioned against reading too much into this still-high supplemental poverty rate because it reflects the withdrawal of generous benefits put in place during and immediately after the recession to cushion families.
Women working full-time saw a boost in earnings last year, with the median income rising 2.7 percent to $40,742. The median income for men working full-time increased 1.5 percent to $51,212. The gains for both genders were the biggest since 2009.
Despite the broad-based gains, there was little progress in reducing income inequality.
"Economic recovery finally started arriving for tens of millions of American families over the past year. We should make sure the economy is nurtured going forward, and not subverted by bad policy decisions," said Elise Gould, a senior economist at the Economic Policy Institute in Washington."
So, in essence America got it's first raise in 9 years and it amounted to $40/month +/-. Now, how about doing the fuzzy math on C level officers, the U6 population, Seniors on fixed income, healthcare costs, inflation data using things like milk and bread....and while your about it, change the calculator back to the earlier interpolated calculation. Hmmmmm...guess we didn't get a raise and can't live on $3,000/month after taxes, but wait a minute, stock market hit all time highs! and the median price for a home hit all time highs! Things must be great!
What's wrong with this picture!
'via Blog this'
With incomes rising, the number of people living in poverty fell 3.5 million to 43.1 million last year. That pushed the 2015 poverty rate down to 13.5 percent from 14.8 percent in 2014.
The poverty rate has continued to edge down since hitting a 17-year high in 2010. The latest drop is the largest percentage point decline since 1999, Census officials said.
In another encouraging sign, the number of residents without health insurance dropped to 29 million last year from 33 million in 2014. Nearly 91 percent of people in the United States had health coverage, up from 89.6 percent the previous year.
"The three key indicators of well-being ... all moved decisively in the right direction in 2015 - the first time that has occurred in nearly two decades," said Robert Greenstein, president of the left-leaning Center on Budget and Policy Priorities.
An alternative measure of poverty that takes into account non-cash benefits, including food stamps and refundable tax credits, fell one-tenth of a percentage point to 14.3 percent.
Analysts cautioned against reading too much into this still-high supplemental poverty rate because it reflects the withdrawal of generous benefits put in place during and immediately after the recession to cushion families.
Women working full-time saw a boost in earnings last year, with the median income rising 2.7 percent to $40,742. The median income for men working full-time increased 1.5 percent to $51,212. The gains for both genders were the biggest since 2009.
Despite the broad-based gains, there was little progress in reducing income inequality.
"Economic recovery finally started arriving for tens of millions of American families over the past year. We should make sure the economy is nurtured going forward, and not subverted by bad policy decisions," said Elise Gould, a senior economist at the Economic Policy Institute in Washington."
So, in essence America got it's first raise in 9 years and it amounted to $40/month +/-. Now, how about doing the fuzzy math on C level officers, the U6 population, Seniors on fixed income, healthcare costs, inflation data using things like milk and bread....and while your about it, change the calculator back to the earlier interpolated calculation. Hmmmmm...guess we didn't get a raise and can't live on $3,000/month after taxes, but wait a minute, stock market hit all time highs! and the median price for a home hit all time highs! Things must be great!
What's wrong with this picture!
'via Blog this'
Monday, September 12, 2016
Donald Trump $30 trillion dilemma: Campaigning against debt, but promising more debt- OR - SPHINCTER SAYS WHAT ! "
Donald Trump $30 trillion dilemma: Campaigning against debt, but promising more debt: "The trouble with Trump's debt position, though, is that his own proposals, according to virtually every analysis that's been done of his plans should he become president, would increase U.S. debt dramatically.
Among the analyses: the left-leaning Brookings Institution figures debt to increase by $10 trillion, the Committee for a Responsible Federal Budget puts the figure at $11.5 trillion, and Moody's Analytics chief economist Mark Zandi said a $11 trillion Trump increase would accompany a "lengthy recession."
Should Trump get elected, then, and be allowed to implement his agenda, U.S. debt would swell past $30 trillion.
The debt would be generated by a combination of increased infrastructure spending and tax cuts both for individuals and businesses. Trump wants to cut the number of tax brackets from seven to three, reducing rates particularly for middle-income payers, and he would slash business taxes to 15 percent from 35 percent now.
He has said the growth the plan will generate will offset the rise in debt, though many analyses doubt that will happen.
In the CNBC interview, Trump seemed to acknowledge the disparity between being anti-debt and pro-fiscal stimulus."
This guy is a SERIOUS TOOL !!
'via Blog this'
Among the analyses: the left-leaning Brookings Institution figures debt to increase by $10 trillion, the Committee for a Responsible Federal Budget puts the figure at $11.5 trillion, and Moody's Analytics chief economist Mark Zandi said a $11 trillion Trump increase would accompany a "lengthy recession."
Should Trump get elected, then, and be allowed to implement his agenda, U.S. debt would swell past $30 trillion.
The debt would be generated by a combination of increased infrastructure spending and tax cuts both for individuals and businesses. Trump wants to cut the number of tax brackets from seven to three, reducing rates particularly for middle-income payers, and he would slash business taxes to 15 percent from 35 percent now.
He has said the growth the plan will generate will offset the rise in debt, though many analyses doubt that will happen.
In the CNBC interview, Trump seemed to acknowledge the disparity between being anti-debt and pro-fiscal stimulus."
This guy is a SERIOUS TOOL !!
'via Blog this'
Sunday, September 4, 2016
US-China diplomacy: Spy agency tweet adds to protocol spat - BBC News
US-China diplomacy: Spy agency tweet adds to protocol spat - BBC News: "Mr Obama earlier insisted the quarrel had no bearing on broader Sino-US relations.
He said that part of the reason for the tension on his arrival in China was because the US had a different attitude towards the press than other countries.
"We think it's important that the press have access to the work that we're doing, that they have the ability to ask questions," he said.
"We don't leave our values and ideals behind when we take these trips. [But] it can cause some friction."
"
What a load of shit! The press is gagged selectively everywhere including in the US and it's becoming more prevalent here faster than anywhere else
'via Blog this'
He said that part of the reason for the tension on his arrival in China was because the US had a different attitude towards the press than other countries.
"We think it's important that the press have access to the work that we're doing, that they have the ability to ask questions," he said.
"We don't leave our values and ideals behind when we take these trips. [But] it can cause some friction."
"
What a load of shit! The press is gagged selectively everywhere including in the US and it's becoming more prevalent here faster than anywhere else
'via Blog this'
Friday, September 2, 2016
Indicator with 100% success rate predicts huge rally for stocks
Indicator with 100% success rate predicts huge rally for stocks: "The report goes on to state that when the indicator, which dates to 1985, "has been this low or lower, total returns over the subsequent 12 months have been positive 100 percent of the time, with median 12-month returns of +27 percent."
At this point, the indicator "implies a 12-month price return of 20 percent, and a 12-month value of 2,604"; for a 22 percent return after the S&P's 2 percent dividend yield is added in
To be sure, this is not BofAML's S&P 500 target. Indeed, the slightly ironic subtext to the report is that BofAML's own head strategist, Savita Subramanian, has a year-end price target of 2,000, which implies a big market drop into the end of the year.
She is concerned about the market's valuation and about high expectations for growth, and while Subramanian acknowledges the sell side indicator's sign, she also says that real-world positioning has become more bullish.
So should you follow the strategists, or sprint in the opposite direction?
It depends on how contrarian you feel, but one thing is for sure: stocks have tended to rise over time, and maintaining a substantial position in stocks over long time frames has proven a winning strategy no matter what Wall Street's prognosticators say.
Indeed, a December BofAML report finds it "worth noting that Wall Street recommended underweighting equities through the entire bull market of the 1980s and the 1990s," with an allocation to stocks below 55 percent being the dominant recommendation among strategists during that time period."
'via Blog this'
At this point, the indicator "implies a 12-month price return of 20 percent, and a 12-month value of 2,604"; for a 22 percent return after the S&P's 2 percent dividend yield is added in
To be sure, this is not BofAML's S&P 500 target. Indeed, the slightly ironic subtext to the report is that BofAML's own head strategist, Savita Subramanian, has a year-end price target of 2,000, which implies a big market drop into the end of the year.
She is concerned about the market's valuation and about high expectations for growth, and while Subramanian acknowledges the sell side indicator's sign, she also says that real-world positioning has become more bullish.
So should you follow the strategists, or sprint in the opposite direction?
It depends on how contrarian you feel, but one thing is for sure: stocks have tended to rise over time, and maintaining a substantial position in stocks over long time frames has proven a winning strategy no matter what Wall Street's prognosticators say.
Indeed, a December BofAML report finds it "worth noting that Wall Street recommended underweighting equities through the entire bull market of the 1980s and the 1990s," with an allocation to stocks below 55 percent being the dominant recommendation among strategists during that time period."
'via Blog this'
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