Finance Industry

"Google & Facebook Are 1984" - Tax Them 'Til They Bleed

"As Google, Facebook and the CIA are ever more entwined, these companies become so important to what ‘the spooks’ consider the interests of the nation that they will become mutually protective...The world has never seen such technologies. We are simply not prepared for any of this."

Frontrunning: July 31

  • HSBC, miners lift European shares as dollar holds near lows (Reuters)
  • Republicans Face Tough Choice: Repeal Obamacare or Cut Taxes (BBG)
  • Trump’s Decisions Deepen Divide Among Republicans (WSJ)
  • Koch Brothers Move to Back White House’s Tax-Cut Plan (BBG)
  • Maduro Waits for U.S. Response After Violent Venezuela Vote (BBG)

A Simple Method Of Risk Management

In hindsight, it is easy to see that investors should have been out of the market in 2001 and 2008. However, remember just prior to those two major market peaks the Wall Street mantra was the same then, as it is today: “This time is different.”

Frontrunning: May 9

  • Yates warned Trump over Flynn blackmail fears (Reuters)
  • Former Trump security aide was Russia blackmail risk: ex-U.S. official (Reuters)
  • Visiting the White House Can Boost Your Stock Price. So Who’s Visiting Trump? (BBG)
  • Investors Lighten Up on U.S. Stocks, Betting on Europe (WSJ)
  • Oil steadies but rattled by concern about OPEC's clout (Reuters)

Financialization & The Erosion Of Growth

"As fees go up by half-a-percent, we reach into the client’s balance sheet, snatch the half-a-percent, and turn it into income; it’s almost magic - capital into income... but we lower the savings rate of our clients (savings and investment rate) by half-a-percent as our fees go up, so we get short term GDP kick from our income, at the expense of lower long-term growth on the part of the system."