Those who are baffled by productivity never bothered to put their theories to rudimentary tests. Greenspan is correct that social benefits crowd out genuine investment; thus, those proposing some sort of guaranteed minimum living wage are totally off base. Entitlements are already a massive problem, let’s not make them worse. Massive handouts have never solved any economic problems, and never will.
Apple stock is lower in the premarket, bucking the overall futures trend, following a report from Digitimes according to which Apple may delay the launch of its next-generation iPhone to October or even November, instead of September as usual, citing a Chinese-language Economic Daily News (EDN) report.
"...in real capitalism, overcapacity and too much debt could have been prevented by periodic cleanups - what Austrian economist Joseph Schumpeter called “creative destruction." ...The problem is that, since the early 1930s, nobody ever tried to do this because the political and social impact of that scenario would have been devastating."
"...on a quarterly basis, the market is currently more overbought than at just about any other point in history... Combined with record levels of margin debt, the current conditions HAVE NEVER lasted indefinitely. "
The gap between the happy-story fantasies of easy fixes to institutionalized corruption and systemic stagnation and the fraying-rope reality is widening, straining the bonds holding the whole contraption together to the breaking point.
Great news - US factory orders grew 7.3% YoY, the highest since July 2014, surely showing the Trumpian hope translating into economic reality? However, adjusted for non-defense and aircraft orders, year-over-year growth was just 0.3% - not exactly what the record high levels of sentiment would have hoped for.
In 1845, the French government levied protective tariffs on scores of items, from sewing needles to locomotives. The intent was to protect French industries from companies outside France that could produce the goods more cheaply. The reaction from Mister Bastiat was to publish “The Candlemakers’ Petition,” a satirical proposal to the government that was intended to help them see the nonsense of protective tariffs.
We knew cheap money would be too much for auto executives to refuse and oversupply was a sure bet! So will be the industry's return to the Washington "substance abuse center". Expect the industry to be back at the government feeding trough asking for help.