Category Archives: Stimulus

Trump’s Animal Spirits

161205animal spirits

James Fallows, in the October Atlantic, says Jane Goodall told him that Donald Trump reminds her of a chimp:

In many ways the performances of Donald Trump remind me of male chimpanzees and their dominance rituals,” Jane Goodall, the anthropologist, told me shortly before Trump won the GOP nomination. “In order to impress rivals, males seeking to rise in the dominance hierarchy perform spectacular displays: stamping, slapping the ground, dragging branches, throwing rocks. The more vigorous and imaginative the display, the faster the individual is likely to rise in the hierarchy, and the longer he is likely to maintain that position.”

Animal Spirits

The elite made a monkey of Trump before the election. But since then he’s released the stock market’s animal spirits. Oil and the dollar dig The Donald too.

Many 401-k investors are bullish because stocks have hit record highs. But Clinton Foundation investors – not so much.

Well, at least one Clinton supporter has done ok. Warren Buffett’s Berkshire Hathaway is up 8% since the election.

 

Thrill Of Victory, Agony of Debate

161020agony of debate

The thrill of victory was followed by the agony of debate last night.

Thrill of Victory

The Cleveland Indians won the American league pennant, shutting out the Toronto Blue Jays 3-0. Rookie Ryan Merritt went 4 1/3 scoreless innings in his second major league start.

Merritt got the nod because starting pitcher Trevor Bauer was the victim of a drone strike. A strike of his own drone. Bauer has always done things his own way, and this came as no surprise to anyone around here. So they sewed up his finger and sent him out to the mound for game three.

Bauer’s a gamer, but his sutured pinkie opened up like the elevator doors in The Shining. He never made it out of the first inning. No problem. Mad Manager Tito Franco stitched together a bullpen game and the Tribe won 4-2.

Back to Ryan Merritt, hero of Northeast Ohio. Someone found out he’s getting married, so fans bought everything on his wedding registry. But you could still get him a pillow last I checked.

Agony of Debate

Unfortunately all good things come to an an end and the final presidential debate was about to begin.

Moderator Mike Wallace asked about Supreme Court nominees. Hillary Clinton said the court should stand up for women and transgender bathrooms but not late term babies about to be aborted. She also said the court should overturn  Citizen’s United (a Supreme Court case that said it’s okay for a company to make a movie critical of Hillary).

Trump said, “The Supreme Court – it’s what it’s all about.”

The clear winner … Chris Wallace.

Yellen Takes Off Training Wheels

151218-YellenJanet Yellen took the training wheels off the economy on Wednesday. After seven years of near zero percent interest rates, the Fed hiked rates a quarter percent.

Meanwhile, Congress passed a 2,000 page,  1.2 trillion dollar budget. That tacked another 157 billion onto the 18.5 trillion dollar national debt.

Yellen

On Friday the Dow dropped 370 points.

David Stockman says, “sell the bonds, sell the stocks, sell the house”. IBD wonders if the markets know something the Fed doesn’t.

Greatest National Security Threat

151207-greates-national-security-threat

Not only is climate change our greatest national security threat. It causes terrorism. Trust me.

Fed Up

150824fed-c

The Fed has kept the stock market and, so it claims, the U.S. economy afloat with low interest rates. The Dow lost 1500 points in the past week. World economic growth is stuck in the mud.

And with interest rates near zero, the Fed is low on flotation devices.

If income inequality is your thing, cheer up. Jeff Bezos lost $2.6 billion on Monday. Bloomberg has the fat cat score card here.