Are the Dems about to cave on the wall and move to Wall Street

While we await the State Of The Union on Tuesday as well as Feb. 15th deadline on the House bill for border wall funding, it appears the Democrats are lining up their new target.

Wall Street appears to be in the cross hairs of more than the Sen. Elizabeth Warren, Sen. Bernie Sanders and Rep. Alexandria Ocasio-Cortez.

On Sunday  Sen. Chuck Schumer and Sanders penned an Op-Ed in the NY Times suggesting that corporate stock buybacks need to curtailed as firms have changed to be solely focused on shareholder value at the detriment of workers.

The opinion piece cited this statistic without any attribution.

Between 2008 and 2017, 466 of the S&P 500 companies spent around $4 trillion on stock buybacks, equal to 53 percent of profits. Another 30 percent of corporate profits went to dividends. When more than 80 percent of corporate profits go to buybacks and dividends, there is reason to be concerned.

I believe this is significant that Schumer, who has bankers as his top supporters, comes out against the hands that feed him. It appears the democrats are searching for a new cause that can resonate with American people.

This marks an important change with the liberal left. Of course it has more gravitas than Ocasio-Cortez slamming Wall Street with uninformed rhetoric.

I’m more interested to see if this gets any traction with the Limousine Liberals in New York, Chicago and Los Angeles, who have profited from these share buybacks in their portfolios.

So looking into my crystal ball, are the Democrats about to cave on the wall and will move to Wall Street as its next cause?


Is Wall St. behind the border wall stonewalling?

Let’s look at an alternative view of why the Democrats are fighting so hard to not fund the Mexican border wall.

As I have written before $5-$6 billion in funding is equivalent to running an aircraft carrier¬† group for a week, so it’s not about the money.

Let’s look at the principals behind this stonewalling (pun intended). Sen. Chuck Schumer is the voice of Wall Street banking in the Senate. Rep. Nancy Pelosi has Silicon Valley just to her south. In this matter it’s the newer financial products, which allow digital transfers, that have a vested interest in cross-border payments.

What would a wall do to the money flows over the border? How would the wall change cash inflows to the US banking system?

President Trump in his Oval Office address last week said: “The border wall would very quickly pay for itself. The cost of illegal drugs exceeds $500 billion a year. Vastly more than the $5.7 billion we have requested from Congress.”

Well all that cash winds up in the US banking system eventually.

So between legal and illegal trading profits moving over the border and US banking firms counting on that additional liquidity to fund other revenue streams, you could make a case that larger forces are at play over the funding of the wall to keep the status quo.

This explanation makes more sense from the point of view of the protracted stalemate going on right now.

What’s that old expression? Follow the money.

US market’s Chinese take out fueled by globalists

US stock futures are suffering a continuing hangover after Monday’s 265 Dow point rise. Dow futures are looking at a 300-point decline at the open.

Pundits cite China’s slowing economy. How can these analysts not understand that China’s economy is slowing because of the Trump’s Administration’s tough stance on trade.

The Chinese have for decades relied on such favorable pricing on goods sold in the US there was never a reason to employ proper business processes. Merely loading a ship with iPhones or steel guaranteed big profits. This is the new normal when it comes to Chinese economic growth.

So the tariff crackdown to level the trade playing field will have to run through a few quarters to get year-over-year numbers showing slowing growth to get Wall Street’s attention. The Street is not looking at US firms, which are benefiting from the more balanced trade situation.

The globalists are also playing up a slowing China as being catastrophic for the US economy to get Trump to back off from punishing their investments in Chinese firms.

Playing hardball with China on trade, on stealing technology, on Taiwan are all good tactics to benefit US firms and Americans in general. Don’t tell me China’s economy is more important than the US for world economic growth.

The US drives the world economy and the sooner Wall Street eschews the globalist’s sky is falling narrative, the better for all Americans and US stocks.

Markets losses were a Democratic election tactic

Despite a national tax cut and record low unemployment with marginal wage gains, stocks had their worst year since 2008.

The Dow Jones industrial average lost 5.6 percent from the beginning of October to year’s end.The index hit 26,951.81, on Oct. 3 before crashing 3,624.35 to close out 2018 at 23327.46.

I’ll get to the other numbers down below, since you can read them in any stock story today. What I want to tell you is that there was no economic or monetary policies that precipitated such a fall one month prior to the midterm elections.

You see how I tied those two together. I believe part of the Democratic Party’s plan was to take away from President Trump his ability to ballyhoo the market gains under his administration. Remember in 2016 and 2017 the S&P 500 soared 9.5 percent and 19.4 percent.

Make the American people question his tariffs and other trade dealings with China and Europe. This makes sense from the left, since most have a globalist view as witnessed by their actions on the border wall. Open borders for immigration and unfair trade pacts for America are their bread and butter.

I have touched on this last week as it was going on. But the volatility in the markets in the last quarter of the year shows that this was a battle for votes. The hundreds of points moves in the market on almost a daily basis as some institutional investors tried to move the market higher based on fundamentals, only to be licking their wounds at the end of the session as big liberal left money managers booked gains and then sat on the sidelines.

Federal chief Jerome Powell’s actions seems to be working in cahoots with the left. Where was/is the inflation that the Fed appears to be fighting? It’s not there with crude falling and wages only moving up marginally.

Only if you take stock market gains as an inflationary bubble, do you have a modicum of intent. But those profits are only realized when you sell, not when they are paper profits.

The second mandate of the central bank is to achieve full employment, which we basically have now. But if you continue to raise rates — four times last year — you will curtail new hirings as the cost to bring new employees outweight the benefit of staffing up.

In the broader markets, the S&P 500 index fell more on a percentage basis to close the year off down 6.2 percent. The Nasdaq fell 3.9 percent as the high-flying tech giants fell from grace as hedge funds were forced to sell the good to pay for the bad bets made in 2018.

Have a wonderful New Year’s Day and a better 2019. Please like and retweet if this post is informative to you.

Dark forces in the stock market

What we are witnessing in the stock market is unprecedented with moves mostly lower, but with a record-breaking break out to the upside on Wednesday.

The 1,086 point move on the Dow was the highest point move ever. The question Tuesday morning is why will we give back more than 400 points to the downside?

These moves and the huge slide before Christmas feel like a tug of war between two factions.

One with a need to damage the economy along with President Trump’s claims that he is succeeding where his predecessor failed.

The other side is somewhat muted in its response to this highjacking of the markets.

How else do you describe the latest moves?

Fed chief Jay Powell appears to be in with the first camp. How else to categorize four rate rises this year while enjoying full unemployment without finding inflation in the couch cushions.

In all my years of market watching I have no other idea of what we are witnessing in the markets. The moves are unprecedented, so therefore a new thought n the cause is needed.

The dark forces in the market are attempting to take the economy into recession through cratering consumer confidence by taking the wealth effect away from Americans. Next will be to repeal the tax cut in the House in 2019.

With these initiatives the Democrats feel they have a better shot of gaining the White House in 2020. It’s a nefarious plan backed by Democratic money in the markets.

Let’s see who will ultimately will win the war for hearts, minds and wallets.