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The government’s reaction to the coronavirus has caused financial problems of monumental proportions. With the shutdown of businesses and massive layoffs, states and municipalities suffered huge losses in revenue. Two-thirds of state revenues come from income taxes or sales taxes.
Back on March 16, a report by Imperial College London forecast 2.2 million Americans would die from the coronavirus and that 81% of the U.S. population would be infected. Consequently, Trump and his team of experts, namely Dr. Anthony Fauci and Dr. Deborah Birx, began holding daily press conferences and quickly scared the daylights out
1) Covid-19 is a severe supply side shock, but main street will bounce back once the public health separation orders are relaxed in the months ahead. The idea of a Depression is nonsense because main street capitalism does not have a death wish. Households and businesses will creatively find ways to cope, repair, replenish and
A recent newsletter noted that there has not been a “Black Swan” in a while, a “Black Swan” being an event that comes as a surprise and has a major effect on mankind’s affairs. The coronavirus, now named COVID-19, just rendered that observation invalid.
Since Nixon closed the gold window August 15, 1971, three massive bull market have rewarded precious metals believers handsomely. Each of these bull market runs have been preceded by reckless financial policies.
Opposition to publicly-traded corporations buying back their stock is developing into a hot political issue that may sink the stock market. The amount of money used in buybacks is astounding.
Congress needed to raise the debt ceiling by March 2 but failed to do so. Now, the Treasury cannot sell bonds to pay government bills, such as payments to bond holders and federal benefit recipients.
For decades, politicians have lied to the American people about the status of the Social Security Trust Fund, asserting that incoming taxes are more than adequate to pay benefits for years to come. Now, the latest Trust Report shows that the Fund will be exhausted three years earlier than last year’s projection and more that
It is not decided whether the housing industry is a coincident indicator of economic activity or a leading indicator. Yet when the housing industry slows, it is not a good sign.
Over the last two weeks, the Dow Industrials rose eight of the ten sessions, tacking on more than 800 points for a 3.2% increase and spreading optimism that the bull market is back on track. The Dow hit two records highs this week. According to the Wall Street Journal, investors seems less concerned about the
