April 15, 2020
Wall Street Feasts…Bezos Gains $24 Billion…and Jim Cramer inadvertently shows “everything that is wrong with America”.
He doesn’t know what he’s talking about. Like many Americans Trump views a sitting president as a “National Daddy” with dictatorial-like powers. In reality the President is constrained by Congress, the federal courts, the media, and most of all the Constitution.
The Founders intended a “duel sovereignty” where state and federal government would constantly debate power. Their purpose was to ensure a strong central government unifying the nation, while at the same time preventing too much power to accumulate in a distant and insulated capital – a major lesson of the Revolution.
Maybe this is a good time for state government to re-assert their power.
Americans are squeezing money out of their assets…
Home refinancing increased 10%, while home sales fell by about 2% compared to last year. Like yesterday’s news about a glut of used cars and depressed new car sales, this is a sign of financial desperation for millions of Americans.
The Daily Beast is running a long read by Joel Kotkin, a geo-economist, about the future of big cities, and the consequences of an exodus to smaller cities and towns. Check it out:
Say goodbye to used car lots in addition to theaters, stadiums and malls. Real estate is too expensive and margins too narrow. Dealerships are moving online to survive.
A new Gallup poll shows that Americans are cautious about restarting the economy. So is the International Monetary Fund (IMF), the central banker of the world, warning,
“The risks for even more severe outcomes, however, are substantial. Effective policies are essential to forestall the possibility of worse outcomes.”
The IMF says the world economy will contact about 3% this year, instead of the 3% expansion is predicted in January. That’s a global decline of 6% in wealth, health and well-being.
Former President Obama finally gave Joe Biden a lukewarm endorsement on Tuesday, a day after Bernie Sanders did. However, Sanders overshadowed Obama on Tuesday when he called on his Progressive followers to move the party to the Left. Look for plenty more bailouts and maybe Universal Basic Income and Universal Health Care if the Democrats win Congress and the Presidency. At the expense of our health, wealth and happiness, of course.
Finally, President Trumps name will be printed on every paper stimulus check mailed out by the IRS. I don’t know if it’s just another manifestation of Trumps narcissism, a brilliant move to attach his name to much needed funds going to desperate Americans just before the election or both.
Links may lead to sites where the author has an affiliate relationship.