Corporate America

Nomi Prins' Political-Financial Road Map For 2017

Today, the only thing keeping a lid on financial calamity is epic amounts of artisanal money. Deregulating an inherently corrupt and coddled banking industry, already floating on said capital assistance, would inevitably cause another crisis during Trump’s first term.

The Titanic Sails At Dawn: Warning Signs Point To Danger Ahead In 2017

James Madison, the father of the Constitution, put it best when he warned: “Take alarm at the first experiment with liberties.” Anyone with even a casual knowledge about current events knows that the first experiment on our freedoms happened long ago. We are fast moving past the point of no return when it comes to restoring our freedoms.

2016 Year-End Bull/Bear Debate

As we head into 2017, trying to predict the markets is often quite pointless. The risk for investors is “willful blindness” that builds when complacency reaches extremes. It is worth remembering that the bullish mantra we hear today is much the same as it was in both 1999 and 2007. We don’t need to remind you what happened next.

2016 Year In Review

We started this year with the economy deteriorating and finished it with the second interest rate increase in ten years. There were a lot of ups and downs along the way, but ultimately 2016 was defined by three key story-lines:  1) Brexit 2) The Presidential Election 3) Fed Policy. The first two events were votes that shocked the world. The stock market’s reaction to each was arguably even more shocking. 

Markets Award Trump Nobel Prize In Economics

It took only nine days in office for President Obama to be nominated for the Nobel Peace Prize. Likewise, the markets seem to have prematurely greeted Trumponomics as an outstanding success. There’s just one thing: Trump hasn’t done anything yet. We’re still weeks away from his inauguration, and details of his economic plans remain scarce.

Earnings 'Magic' Exposed

At best one can accuse Wall Street analysts and the companies that feed them information of incompetence. At worst this is another pure and simple case of institutions gaming the system through a fraud designed to prop up stock prices.

Cisco CEO Chuck Robbins: An Idiot Or A Liar, You Decide...

"...these are the type of moronic and asinine thought processes coming out of corporate America that are killing the American middle class... If Chuck truly believes what he says, well he is an idiot. If he has even a shred of economic acumen then he is a liar. I’ll leave it to you to decide."

Carrier & The Slippery Slope

Time will tell whether this Carrier deal was just a symbolic line in the sand, or whether it is a sign of future government interventionist policies which will ultimately backfire. In the long run, the less government, the better.

The Political Triumph Of The Empty Gesture

Politics is the art of the symbolic gesture. The successful symbolic gesture gains gravitas by crystallizing a narrative that attracts a consensus that then powers policies of substance. The politics-as-usual gesture is empty of substance, serving only to mask collusion and failure.

Death Threats & Other Market Signals

Prior to the election, investors didn’t believe there was much operating leverage available in corporate America.  Slow revenue growth, slow inflation, slow wage growth, slow earnings growth.  That was the recipe for next year. Now, expectations for better economic growth have markets scrambling to find companies with the operating leverage (read high fixed costs and high incremental margins) to show outsized earnings growth as a result.