Finance

The Hubris Of Tariffs

At the core of President Trump’s Tariff Policy are the multiple goals of reducing the nation’s trade imbalance, re-industrializing the country, and raising funds for the government budget. Almost no one would argue with these objectives. Trump’s campaign slogan, Make America Great Again, encapsulates these goals. Today,

Think Your Credit Card Bill Is Too High? Here's Why

With all the talk about a slowing economy and President Trump's push for lower interest rates, you may believe that banks and other lenders are making loans more affordable. Regrettably, that's not the case. In fact, the country's commercial banks have recently raised their

Who Pays For Tariffs? Jeep's Answer

It's been the burning question since President Donald Trump stepped out in the White House Rose Garden and announced that he was ordering tariffs on virtually all countries, worldwide. Everyone wanted to know "who would pay for these tariffs?" After all, for a country like the

There Is A Cancer Eating At Our Economy, But Does Washington Get It?

Imagine a situation where nearly four cents of every dollar you earn is taken away, charged as a tax, yet contributes nothing. As a citizen, this charge provides no services, no schools, no national defense, no social services; in the words of economist Lacy Hunt, it is simply a "

Does Anything Good Come From International Trade?

On April 2, 2025, “Liberation Day,” President Donald J. Trump presented the world with his list of tariffs to be applied to virtually all nations. This was the climax of a process that he had begun a couple of weeks before. He aimed to reduce the annual trade deficit that

Reading The Financial Markets: Q2, 2025

Relatively few investors are day traders, yet most of the technical market indicators are computed daily. This leads to a very myopic perspective — it’s like driving a car with a microscope. You’ll eventually see the oncoming traffic, but it may be after you crash. Today, we’ll look

Why Wall Street Was Bound To Hate Trump's Tariffs

It’s easy for Investment outsiders to underestimate the pressure to perform on Wall Street. From the largest Mutual or Hedge Fund Manager (with the greatest AUM) to the lowest regional Stock Broker, the demand to produce solid returns year after year is intense. It’s the reason many financial

American Tariffs, The Good, The Bad, And The Unknown

On April 2, 2025, from the White House Rose Garden, President Donald Trump announced the third era of American Tariffs. It was a much-anticipated event, with the global financial world holding its collective breath. Seemingly, no one knew the details of these new taxes on imports. Bloomberg reported that Trump

"Your Banker's Calling" Reflections On The Nation's Debt

For anyone who's ever had a bank loan, from a credit card to a home mortgage, you know the chill that runs up your spine at the mention of a phone call from your favorite bank lender. The thought that you've missed a payment, or even

What Did The Federal Reserve See That We Missed?

On Wednesday, March 19, the Federal Reserve Open Market Committee made its latest decision on interest rates: "Steady as she goes," said the Fed, a succinct decision that led to one of the shortest Fed statements in recent memory. Fed Chairman Jerome Powell reported the committee's

How To Manage Your Cash: The Warren Buffett Model

We started following Warren Buffett’s cash position a year ago. At the time (the end of 2023), he had accumulated $163 Billion, an unheard-of sum. Many felt that the “Oracle from Omaha” had reached his limit, that he’d gone as far as he would. However, it turned out

Why It's Time To Watch Your Banker Like A Hawk

A growing number of analysts on Wall Street are calling for a slowing economy — perhaps not an outright recession, but enough of a slowdown to cause headaches for the bankers. With as much debt as we have in the financial system, read “loans” from banks, even a tiny increase in

The Great Financial Deception Is Ending, What Comes Next May Be Painful But Much Needed

Imagine that I stole $100 and gave it to you. What would economists call this? To answer the question, one must remember that economists are not moralists. They don’t care where the money came from; they only record what happens with it. In this case, economists would note that

Concerned About A Stock Market Crash? Listen To The Timeless Wisdom Of Bernard Baruch

Current financial technology is simply outstanding. We rely on our ability to place an order on our smartphone, move cash from our bank to our brokerage account and back again, and sell anytime we're hesitant about the markets. Instant electronic communication puts Wall Street at our fingertips, and

How Trump's Tariffs Will Likely Affect Your Wallet

In a world where technology and capital are highly transferable, there is a real risk that comparative advantage comes to be defined as whose labor force will work for the lowest wage. Robert Kuttner At the height of last year’s Presidential Campaign, then-Senate Majority Leader Chuck Schumer wrote to

President Trump's Challenge: How To Return The Economy To Normal After Unrelenting Stimulus

Can President Trump manage the economy if it begins to slow? It’s an important question that will likely determine the success or failure of his second term in office. Historically, the federal government has boosted the economy anytime they project a recession ahead. However, President Trump is removing much

Closing the Books On Bidenomics, Our Experiment In Central Planning

Imagine a world where everyone was guaranteed an annual salary, not-for-profits, hospitals, schools, and universities didn't have to worry about their budget, and even corporations would receive income. This has been the dream of collectivists for generations. In their thinking, it would eliminate some of the basic limitations

The Banker, the Seer, and the Indicator - Unraveling the Yield Curve

If you follow the financial markets, you've no doubt heard about the "Yield Curve"—that mysterious market indicator credited with foretelling future economic conditions. Just what is this "Yield Curve?" And why is it deemed to be clairvoyant? I'm afraid if you

Los Angeles Fire Department - The Financial Story

There is much more to a financial report than just debits and credits. If you know how to look, you will find an organization’s collective aspirations over time, the goals and directives that shape an entity’s success or failure — all there in dollars and sense. ** The financial story

The 2025 Macro Outlook, Three Things To Watch Out For

In 2024, the overall Economy took a negative turn in three areas critical for investors: Corporate Profits, the country's financial condition, and retail sales. Although each sector remains positive, it has taken on a decidedly negative direction. I'll be utilizing the data from the Bureau of

Timing History, The Long-Range Thinking of Buffett and Munger

Today, we’ll look at two gentlemen who’ve invested not for weeks or years but for decades. Warren Buffett and Charlie Munger built one of the most successful investment vehicles ever, the Berkshire Hathaway Company. And they did it by understanding the historic times they were in. Today, we’

Corporate Profits Were Flat Last Quarter

Wall Street Analysts are scrambling to revise this quarter’s Corporate Profit projections, as the Bureau of Economic Analysis (the Government’s chief economic data keeper) announced that Profits were unchanged last quarter. This was a complete surprise, as most analysts thought US Corporations would increase their profits by 3%

BRICS - The Emergence Of A Global Super Alliance

Like any business conference, BRICS presents an opportunity to showcase projects that have been in the development stage for some time.

The Strange Ritual of the Federal Reserve

I encourage the rest of us to linger a moment on these 14 words because they hold the key to understanding not only the Federal Reserve but also the exercise of power in our federal system.

The Continuing Cost Of Covid - How The Pandemic Affects Our Finances Today

Reading today’s financial press is like watching a debate between pessimists and optimists. To the pessimist, the glass is half empty, and the US Economy is about ready to fail. To the optimist, the glass is not only half full but nearly overflowing, with nothing but good times ahead.

The PetroDollar R.I.P.

The assumption was that by removing Russia from SWIFT, it would not be able to sell its oil overseas. Biden would have cut off the chief source of Russian international trade and finance. However, ultimately, Biden shot at the Russian oil trade and hit the PetroDollar instead.