The last time Private and State & Local Government Pensions were fully funded was at the end of the stock market bubble in 2000. However, even with stocks making new highs, these pensions remain $2.33 trillion, or 27 percent of their assets, underfunded at the end of 2016.
"Trump voters felt like they were voting for an anti-establishment candidate — and they're terrified, they're losing faith. This could be the most elaborate reality show. I'm wondering, was this all an illusion for us, using our movement so he could get in there?"
"Trump doesn’t want to preside over a major decline in our standard of living, but ultimately that has to happen. Because this is the consequence of all this excess consumption that went on before he was president. You know, we sacrificed our future to indulge our past. The future is now the present. We’re here, and it’s time to pay the piper."
"It is a wonder to behold because it shows the utter incapacity for learning, let alone scientific principles. The models are the models no matter how much empirical refutation they have been subjected to time and again."
"The most amusing part of yesterday’s market move is that anyone was surprised by Trump’s comments. The United States has a President that made his fortune on the back of debt, yet somehow the market thinks Trump will govern in a tea-party-hard-money fashion. Nothing could be further from the truth. He says Yellen is 'not toast'. Well, I disagree."
If the Federal Reserve follows the path it is communicating, if the 10yr performs as it has for the last 4 decades, and the inverted spread indicates what it has for the last 7 decades, we will be in recession in 2018. Why the Fed is undertaking this course is beyond us...
S&P futures extended their Wednesday decline, dropping in the overnight session with banking shares in focus ahead of results from JPMorgan and Citigroup. European stocks likewise retreated along with the dollar, while Asian shares were mixed.
It is now increasingly clear that the Trump administration is going to be at least four years of endless war, budget-busting spending, massive deficits, and more big government in general. His demonstrated preference is not for addressing the issues that won him the Rust Belt states. He's a war president now, and has better things to do.
In an effort to keep its stake below 10%, Berkshire Hathaway has dumped 7.13 million shares of Wells Fargo in the last 2 days and intends to sell 1.86 million more shortly. The after-hours reaction in the stock is negative, dropping the bank's share price to its lowest since Nov 2016, despite reassurances from Buffett that this is a more technical sale.
“I do like a low-interest rate policy, I must be honest with you. I think our dollar is getting too strong, and partially that’s my fault because people have confidence in me. But that’s hurting—that will hurt ultimately.”
"We have a dual economy: There are the ones who are angry and are falling behind and there are the ones who are doing very well. The financial markets are largely about those who are doing very well...So it’s quite a one-sided hope and we will see how it plays out."