The reason I gave Apple example is they are not re-investing, they are giving back. That money goes to those who own assets.
If you have followed me on the other board, you would have seen my thesis of buyback for banks for the last 2/ 3 years. Very few industries have the need and ability to re-invest. It is best reflected in bank loans… banks are loaning money to US, i.e., buying treasuries or to consumer loans. Their industrial loans are pretty flat.
That is mostly true. But conglomerates would venture into heavy industry in the US as a result of higher corporate taxes. Some would buy small manufacturers and expand them.
80% of our economy is the service sectors. They at first glance have no use for higher corporate taxes but it is a must. We need to produce our way to wealth.
In a great depression things will be clearer that we need to build wealth.
1% will keep the top 10% VERY HAPPY as they own 89% of stocks. A return to the good old days. We are in an Neo Gilden age where income inequality is at its height.
NOt at all. What do you think autonomous vehicles, robots, and AI have in common? They will remove a significant, read it as millions, of blue collar, entry level jobs.
US have over 3.6 million truck drivers, and 2 million people who fill the shelves in warehouses. What are the chances that these people are going to find alternate jobs, that will provide liveable wages??
Future is rosy for the rich, those who own certain type of skills. But always, always someone else pays the price for that.
There is a good chance that it will be Scott Bessent
If trump elevates someone who is already a governor, that encourages Jay Powell to leave, remember he still has 2 years after his term as chair ends, then trump gets to nominate 3 people.
Trump packed SCOTUS, he can pack Fed. What are the chances that Trump will not take that?
This guy has higher chance.
I think it would keep a lot of other people happy. Interest rates on car and home purchases would be lower, definitely helping the median income person.
Speaking of median income, between 2010 and 2019 (a period of very low interest rates) the US median income rose significantly.
$35.98K/$$26.18K = 1.37
DB2
On the other hand, several OEMs seem to think that the road to rising bonus checks is continuous price escalation. So what does 1% APR matter, if they jump the price 20%?
Steve
That’s a good point. Trump’s second term has not been like the first, Trump has gone out of his way to not follow conventional appointments. Appointing outsiders is the general rule with Trump 47.
Dream on. JCs will keep those new jobs with low pay & little health benefits. There are very few jobs protected by unions now.
I have already addressed this. Unless Fed prints money like crazy, just FED reducing rates alone may not bring the long-term rates down.
If people are smart they will look past that, because easy money will accelerate AI adoption, and retrofitting many industrial systems with robots. That is a long-term threat for them. But I am not counting them to be that smart..
When you are ready to wake up and read economic data… Have you looked at the unemployment details for fresh college graduates? entry level jobs? Have you read what Andy jasse wrote?
When the physical AI is deployed it will obliterate many low skill jobs. It is like slowly quick serve restaurants reducing people who take orders, and instead make you enter the order… slowly but surely. Now image, If McDonalds gets to 100% depreciate those machines and get 1% loan to buy the equipments… how fast it will be?
LOL that’s because the top 5-10 percent were raking in the loot.
Since 1980 the working class & lower middle class have been losing ground on income.
https://www.rand.org/pubs/working_papers/WRA516-1.html
The three decades following the Second World War saw a period of economic growth that was shared across the income distribution, but inequality in taxable income has increased substantially over the last four decades.
Your assumption of the dynamics would be true with or without low interest rates. However, with a 20% price increase the financing costs also go up (probably more than 20% as the down payment becomes a smaller percentage. With more being financed lower rates become even more significant.
DB2
He mentioned “median” not average. Median will not move if only the top 5-10% raking in. Here is the federal reserve data..
Wendy already reported that no one is applying for factory jobs.
AI & automation will throw 24% of the population out of work with no where to go.
An important measure of a nation, IMO, is how they treat the less fortunate.
This is not about me. Also, you speak on all sides…
Cheers have a wonderful weekend.
However, what I pointed out is that those of median incomes also did well in the low interest rate environment – certainly better than they did in the high interest environment of the early 2020s.
DB2
Likely because neither political party address critical issues. Rather they use knee jerk issue to distract the public from their do nothing agenda & self enrichment. Issue such as birth control, gun control or illegal immigration to name a couple.
So, what’s up with this table? I’ve always read that IQ results form a bell curve. Shouldn’t the numbers be symmetric?
130 and above – 2.1%
Under 70 – 4.1%
DB2
