Sorry about yesterday. Went off to see the eye guy sand got back in time for the Fed announcement with dilated eyes which was just as well as Yellen et Cie. said nothing. Always trying to learn I decided to say nothing as well and wait until today for the full reaction with a night of rest and thinking behind us. There is still nothing to say, but say something I must.
Well I'm going to need more surgery...oh, never mind, do one cares but at least that is definitive. Not much else is.
The economy grew at a es-than-wonderful 2.3% in the second quarter putting us on track for a less-than-wonderful year. In simpler time, one would think that this would mean that there would be no interest rate movement but the Fed does have this "dual mandate" thingy (dumb as it may be) and for those bound and determined to get a rise, they will begin abandoning the economic numbers and zero in on the job growth statistics which we are now being told will be "strong." September for this mob is the magic month and as we know, the smartest guy in the room would also like to start "normalizing" but for entirely different reasons. It's a silly argument I guess but one wonders how strong--really--are the job numbers to justify a rate increase? Actually, we are back to where were at the start of 2008 but as has been pointed out, we have somewhere between 25-35 million more people in the country which puts the percentage of the labor force actually working in the tank; not surprising with the tepid growth figures. I say the argument is silly because I don't think anyone really cares; the action will be politically dictated and I still think it is December at the earliest because politics demands that no risk of an adverse reaction in the headlines should be taken. For example, the dollar is rising slowly on the September talk; it will rise quickly on any action with a corresponding slump in exports that will be reflected in GDP numbers. Not good for Lil' Miss Rodman and her ambitions and heaven forbid a stock drop which of course will be the real headline grabber.
I know, this may sound simplistic but I think this is what's going on. On top of all this we do not have what would refer to as a completely stable envirorment--economically or politically--around the globe. One thing not often discussed Over Here is the state of emerging markets which to be blunt is not great. This week, S & P announced the impending downgrade to junk status of Brazilian debt. This comes as no surprise but if it occurs it will probably be the final nail in the coffin of the sitting government with the possibility of enormous turmoil to follow. The effect on the high yield sector...already in the doldrums...could be very, very severe. Knowing my views concerning market liquidity my concern is high. Like Mr. Fisher, I would like to see an attempt at normalization but I truly wonder, politics aside, if this is the time.
Unfortunately, just when things seemed to have calmed down, back comes Greece with a vengeance which we shall explore tomorrow as more details concerning a truly remarkable dust-up between creditors emerge. Coming inside to write is really hard: this has...and tomorrow will be...simply the most beautiful of summer days in the fly-over zone.
Showing posts with label Brazil. Show all posts
Showing posts with label Brazil. Show all posts
Thursday, July 30, 2015
Friday, March 13, 2015
SQUEAKY BUM TIME?
...which is what the former manager of Man United used to say when it was time to worry. Well, when Little Paulie Krugman almost gets it right, by my reckoning it's squeaky bum time...in spades.
Paulie just figured out that Mario's QE exercise for which he has been screaming for over a years is just about to turn the the U.S. Dollar into Le Currencie Horrible from the standpoint of doing any good for the U.S. economy and--though he will not admit it--not do a damn thing for economic conditions Over There. He also was on the mission of an American QE Whatever once again but with hardly the fervor of past episodes of Paulie Plays John M. If we are lucky, he might figure out that it's fine to be a Keynesian if you are as smart as John M. which Paulie is almost certainly not, but I fear that is a hope for a far distant future. Anyway, this sort of revelation on the part of Paulie is cause for concern: if he can figure it out we should worry.
The Euro was slaughtered again today as was pretty much everything else that counts except the dollar. If I were still trading (the world thanks God that I am not), I'd probably be positioned for the Euro to break the buck inside of two weeks. This movement is something out of the Doomsday Book. Following it right down into the toilet is oil which the smart guys say will be with a 30 handle by the end of the month. With the supply figures out there they are probably right this time.
On top of all of this, comes now another concern which was there all along but somewhat ignored in all of the other melee: dollar denominated debt. Oh not your Greece and points east, but corporate dollar denominated debtors, especially in emerging markets. In places like Brazil. For companies like Petrobras which is mired in scandal and corruption, hampered (to say the least) by political motivated mis-management and in the wrong business at the wrong time with a balance sheet completely mis-matched in currencies. Petrobras is not the only one. The same scenario with a few variations on the theme is being played out around the globe. The Dollar is the financing currency of choice. When your liabilities are appreciating, and you cash and earning are depreciating... We have seen this movie before and it has always been rated R if not X. There are a lot of concerned people out there not named Fergie. Count me among them. Paulie, you should be as well.
Paulie just figured out that Mario's QE exercise for which he has been screaming for over a years is just about to turn the the U.S. Dollar into Le Currencie Horrible from the standpoint of doing any good for the U.S. economy and--though he will not admit it--not do a damn thing for economic conditions Over There. He also was on the mission of an American QE Whatever once again but with hardly the fervor of past episodes of Paulie Plays John M. If we are lucky, he might figure out that it's fine to be a Keynesian if you are as smart as John M. which Paulie is almost certainly not, but I fear that is a hope for a far distant future. Anyway, this sort of revelation on the part of Paulie is cause for concern: if he can figure it out we should worry.
The Euro was slaughtered again today as was pretty much everything else that counts except the dollar. If I were still trading (the world thanks God that I am not), I'd probably be positioned for the Euro to break the buck inside of two weeks. This movement is something out of the Doomsday Book. Following it right down into the toilet is oil which the smart guys say will be with a 30 handle by the end of the month. With the supply figures out there they are probably right this time.
On top of all of this, comes now another concern which was there all along but somewhat ignored in all of the other melee: dollar denominated debt. Oh not your Greece and points east, but corporate dollar denominated debtors, especially in emerging markets. In places like Brazil. For companies like Petrobras which is mired in scandal and corruption, hampered (to say the least) by political motivated mis-management and in the wrong business at the wrong time with a balance sheet completely mis-matched in currencies. Petrobras is not the only one. The same scenario with a few variations on the theme is being played out around the globe. The Dollar is the financing currency of choice. When your liabilities are appreciating, and you cash and earning are depreciating... We have seen this movie before and it has always been rated R if not X. There are a lot of concerned people out there not named Fergie. Count me among them. Paulie, you should be as well.
Monday, October 27, 2014
AS EXPECTED
The stress test that it. The Italians are weak, the Spanish aren't in great shape, Caxia...after a zillion Euros of support still look to the Belgian Burgers for support, the Germans are fine with the exception of a few little Landesbanken and the French are brilliant. Do I believe it? Not for a minute but there seems to be general agreement that this go-around was conducted with a more cogent view of reality than any of its predecessors. Whilst all the Brits passed, the Old Lady will do her own thing next months which promises to be a bit more demanding than what came out of the ECB. Nevertheless, the system should make it through that one as well.
So, what does all this mean? Not much, really. Those two nasty words--structural adjustment--keep popping up and reduced fears about the banking system, whilst no doubt a good thing--will not have any real effect on the European growth outlook. Today, like yesterday, it is still stinko with nothing on the horizon to change it. It would appear, therefore, we get through this year with a whimper and look to 2015 to change the course of events. Of course, that change could be in either direction as there is a heck of a lot of political activity scheduled. Remaining is the Big Destabilizer...Russia...with a currency in free fall, an economy in tatters and a nut running the place.
A worse scenario one could not imagine but there's not really much anyone can do.
Of more immediate interest and perhaps concern is that Dilma won...and Brazil lost. Oh, make no bones about it, the lady is a communist, they don't change, and as a result her economic policies and dismal governing record will persist and doom her country to no better than the gloom that has accompanied the past four years as well as to the continued destruction of the jewel in the crown, Petrobras, as a result of corruption, mismanagement and unconscionable incompetence. Remember the Masters of the Universe of a few years past? The BRICS? Brazil, Russia, India and China? Gee what happened, what went wrong? The rule of law gang. If it isn't there, nothing else is. Might be something to keep in mind as we approach our elections next week
So, what does all this mean? Not much, really. Those two nasty words--structural adjustment--keep popping up and reduced fears about the banking system, whilst no doubt a good thing--will not have any real effect on the European growth outlook. Today, like yesterday, it is still stinko with nothing on the horizon to change it. It would appear, therefore, we get through this year with a whimper and look to 2015 to change the course of events. Of course, that change could be in either direction as there is a heck of a lot of political activity scheduled. Remaining is the Big Destabilizer...Russia...with a currency in free fall, an economy in tatters and a nut running the place.
A worse scenario one could not imagine but there's not really much anyone can do.
Of more immediate interest and perhaps concern is that Dilma won...and Brazil lost. Oh, make no bones about it, the lady is a communist, they don't change, and as a result her economic policies and dismal governing record will persist and doom her country to no better than the gloom that has accompanied the past four years as well as to the continued destruction of the jewel in the crown, Petrobras, as a result of corruption, mismanagement and unconscionable incompetence. Remember the Masters of the Universe of a few years past? The BRICS? Brazil, Russia, India and China? Gee what happened, what went wrong? The rule of law gang. If it isn't there, nothing else is. Might be something to keep in mind as we approach our elections next week
Tuesday, July 8, 2014
O JOGO BONITO IN DIE KU-DAMM STRASSE
Germany slaughtered Brazil today in the semi-finals 7-1 and it wasn't that close. No point in talking any more about it except to say a wonderfully formed team, organized and well-coached beat a side missing it's best player due to injury from a vicious tackle in the previous match and its most important player due to pure stupidity. Brazilian football has never been at a lower point.
More importantly, and little understood by the folks Over Here is what will be the effect on Brazil as a nation. Remember when Brazil was supposed to be the world's powerhouse, surpassing the United States in practically every respect by 2020? Today, it is a nation torn by mis-management, poor government and social divisions which were only heightened by the billions upon billions spent on the preparations for this World Cup and the Olympics which are to follow in two years. To and extent, Brazilians were prepared to accept the waste and corruption if it would result in the inevitable victory by The Selection on the sacred grounds of Maricana. That is gone and despair will undoubtedly replace the anticipation of that glorious victory. Because of a GAME, we could all have a hell of a mess on our hands threatening not only the coming Olympics but the political and economic stability of the country as well. It can only get worse; either the hated Argentines or yet another European side will march out to face the Germans on Sunday. The Selection is gone and with it the pride of a nation.
O, by the way, we're back.
More importantly, and little understood by the folks Over Here is what will be the effect on Brazil as a nation. Remember when Brazil was supposed to be the world's powerhouse, surpassing the United States in practically every respect by 2020? Today, it is a nation torn by mis-management, poor government and social divisions which were only heightened by the billions upon billions spent on the preparations for this World Cup and the Olympics which are to follow in two years. To and extent, Brazilians were prepared to accept the waste and corruption if it would result in the inevitable victory by The Selection on the sacred grounds of Maricana. That is gone and despair will undoubtedly replace the anticipation of that glorious victory. Because of a GAME, we could all have a hell of a mess on our hands threatening not only the coming Olympics but the political and economic stability of the country as well. It can only get worse; either the hated Argentines or yet another European side will march out to face the Germans on Sunday. The Selection is gone and with it the pride of a nation.
O, by the way, we're back.
Thursday, July 11, 2013
HE DID IT AGAIN!
Most importantly, however, the Triplets turned six and had a birthday party that lasted three days; three kids, three days. Makes sense.
What makes no sense is Mr. Bernanke who, despite sage advice from this quarter and others, simply can't stop running his mouth and just shut up. He did it again yesterday explaining that the real Fed policy is to keep interest rates low until time eternal but to perhaps (or was it probably) scale back on QE III (or is it IV) by the end of this year. Proving that easy money has always been the driver of this stock market it started up after-hours last night and finished up over 160 points today for a new world's record for the DOW. Yea for everybody...except bond traders who got absolutely killed, FX traders who were properly long the dollar and got absolutely killed, places like Brazil who had to raise domestic rates (a reversal of form) in the face of lousy economic numbers, and Euro ministers of finance who watched the yield on their bonds rise thereby threatening to put a serious hurt in their budgets which, if anybody has missed it, are somewhat important in holding that entire mess together Over There. It's not that Ben wants to create havoc, it's just that unlike Jim Baker ("the dollar is your problem") who grew up in the real world, Mr. Bernanke is simply doing what any good academic does which is to follow his own models right down the gurgle tube without a thought (or care) in the world as to how their applications might affect others be they correct or incorrect in the end. Don't say I didn't tell you. But after losing a billion or ten here and there, we now have clear guidance and the nano second traders can get back to screwing the little guy and we can stop worrying about fundamentals for at least six months. It's so much more easy this way.
The Times this morning was all excited that it appears that the regulators Over Here and in the UK are about to agree as to who should be looking after whom in regard to American subs operating Over There and visa-versa. That kind of left me wondering whether or not we had an agreement prior to the time the world came tumbling down and I distinctly remember having my bum hauled over to Threadneedle Street more than once to explain what was going on which means I guess we did: they watched us and we watched them and people used to talk to one another. This is better I suppose because Great Minds have been working on this for years now. No Dumbos like Paul Volker, Chet Feldberg Terri Checki or Brian Quinn to worry about. Real Geniuses at work today. I felt so much better after reading the article.
Another wonderful event of the past couple of days was the Euros agreeing on a joint set of rules by which the gazillion national banks Over There are to be governed along side the awful Basel III accords with one set of rules. Flush with success, next came an agreement as to how failed banks were to be wound up, and it passed unanimously...except for Germany who figured out early in the game that it was German money that would be used in this, God's Work. Not on lads, the Volk would not stand for it, which of course makes the previous agreement pretty much useless. While this was going on, Italy stopped functioning because Burlesconi told his guys to butt out of the legislating job, Spain was going no where but down, the Greeks...well...the were being Greek and the French were waiting for August so that they could do nothing at all. The triplets, on the other hand, organized their own birthday parties quite well...then again, at six years of age they are a bit more mature.
What makes no sense is Mr. Bernanke who, despite sage advice from this quarter and others, simply can't stop running his mouth and just shut up. He did it again yesterday explaining that the real Fed policy is to keep interest rates low until time eternal but to perhaps (or was it probably) scale back on QE III (or is it IV) by the end of this year. Proving that easy money has always been the driver of this stock market it started up after-hours last night and finished up over 160 points today for a new world's record for the DOW. Yea for everybody...except bond traders who got absolutely killed, FX traders who were properly long the dollar and got absolutely killed, places like Brazil who had to raise domestic rates (a reversal of form) in the face of lousy economic numbers, and Euro ministers of finance who watched the yield on their bonds rise thereby threatening to put a serious hurt in their budgets which, if anybody has missed it, are somewhat important in holding that entire mess together Over There. It's not that Ben wants to create havoc, it's just that unlike Jim Baker ("the dollar is your problem") who grew up in the real world, Mr. Bernanke is simply doing what any good academic does which is to follow his own models right down the gurgle tube without a thought (or care) in the world as to how their applications might affect others be they correct or incorrect in the end. Don't say I didn't tell you. But after losing a billion or ten here and there, we now have clear guidance and the nano second traders can get back to screwing the little guy and we can stop worrying about fundamentals for at least six months. It's so much more easy this way.
The Times this morning was all excited that it appears that the regulators Over Here and in the UK are about to agree as to who should be looking after whom in regard to American subs operating Over There and visa-versa. That kind of left me wondering whether or not we had an agreement prior to the time the world came tumbling down and I distinctly remember having my bum hauled over to Threadneedle Street more than once to explain what was going on which means I guess we did: they watched us and we watched them and people used to talk to one another. This is better I suppose because Great Minds have been working on this for years now. No Dumbos like Paul Volker, Chet Feldberg Terri Checki or Brian Quinn to worry about. Real Geniuses at work today. I felt so much better after reading the article.
Another wonderful event of the past couple of days was the Euros agreeing on a joint set of rules by which the gazillion national banks Over There are to be governed along side the awful Basel III accords with one set of rules. Flush with success, next came an agreement as to how failed banks were to be wound up, and it passed unanimously...except for Germany who figured out early in the game that it was German money that would be used in this, God's Work. Not on lads, the Volk would not stand for it, which of course makes the previous agreement pretty much useless. While this was going on, Italy stopped functioning because Burlesconi told his guys to butt out of the legislating job, Spain was going no where but down, the Greeks...well...the were being Greek and the French were waiting for August so that they could do nothing at all. The triplets, on the other hand, organized their own birthday parties quite well...then again, at six years of age they are a bit more mature.
Tuesday, March 6, 2012
WRITER'S CRAMP
Sorry gang, I could wax poetic but to what point. The date will be Thursday when we learn the fate of the swap and despite all the positive noise out there nobody has a clue of what's going to occur. I suspect the Greeks will get about 75-80% of the debt tendered, they will enact the Collective Action Clause and the CDSs will trigger--or at least some of them. After that, who knows what happens and to be honest not too many people care. This thing was all about the banks and on cue, the biggest holders of the debt in the banking sector have all said that they will tender which means the authorities feel that none of them will go toes up as a result. Now if the CDSs trigger that could cause the bailout to be posponed but half of Europe could care less because everybody knows that Greece is kaput and one might as well deal with that now as well as later. Of course, there will be no money for the banks in the future but we'll...oh hell, I don't know what we will do and I could care less as well. The punters will move on to Portugal but as the Portugese have no maturities until well into 2013 that trade is a bit tricker. I'm just going to wait until Thursday before I say another word.
In the meantime, one thing to look at are the polls in France. Right now, things look really bad for Sarkozy and French Soccer. You see, Hollande has proposed a top tax rate of 75% which means any soccer player that doesn't have two left feet will be out of France in a year. Mme. Sakorzy as well--with or without the old man--which would be a hell of a loss. The Socialists have also proposed a breakup of the French banking system along the lines of the Volker Rule which is step #1 according to some of my friends to the nationalization of the system. Au Revoir La Republique from any sort of economic performance in the coming years which makes the future of Euroland even bleaker than it is right now. Why anybody would keep their money in that place is beyond me (are you listening Matthew?), and yet some commentators are taking it in stride perhaps with the thought that he hasn't happened yet.
Not the markets, however. Waking up to the understanding that things are not all that well in Euroland and that there's a bit of a muddle on this side as well, the incredible surging stock market took a 200 point hit on the Dow today. Emerging market slippage added to the slide as the numbers out of Brazil were surprisingly (for some) poor. It might be a rather good ideal if one of the geniuses on tv wandered on down and asked those folks whatsup. What they would get is an earful of what this glut of money spewing forth from the Fed and soon-to-come ECB means to growth markets like Brazil: the inflationary pressure it causes makes it very difficult for these guys to cope. Best so far has been Mexico but it has been a struggle. But spewing along we go with Richard Fisher about the only guy in town who seems to understand what it is we may be causing.
Finally, Wells Fargo today put out a rather interesting report that didn;t get the coverage it should have given the political bent of the popular press. According to the Stagecoach, the greatly improving employment number has been more of a function of people simply stopping to search for jobs rather than a true economic shift. Run the numbers in the same manner and the real unemployment rate is 11.8% not 8.3%. I don't know. Ther have been earlier comments like this but things around here are looking a bit better, yet the study was pretty convincing. Problem is, we are not disconnected from the rest of the world; if folks are right about Europe and emerging markets, any positive move here no matter how real is unsustainable. And as for China? Good news there. My Really Smart Friend, Larry is there as we speak. We'll have the true scoop in a day or tow. Be patient.
In the meantime, one thing to look at are the polls in France. Right now, things look really bad for Sarkozy and French Soccer. You see, Hollande has proposed a top tax rate of 75% which means any soccer player that doesn't have two left feet will be out of France in a year. Mme. Sakorzy as well--with or without the old man--which would be a hell of a loss. The Socialists have also proposed a breakup of the French banking system along the lines of the Volker Rule which is step #1 according to some of my friends to the nationalization of the system. Au Revoir La Republique from any sort of economic performance in the coming years which makes the future of Euroland even bleaker than it is right now. Why anybody would keep their money in that place is beyond me (are you listening Matthew?), and yet some commentators are taking it in stride perhaps with the thought that he hasn't happened yet.
Not the markets, however. Waking up to the understanding that things are not all that well in Euroland and that there's a bit of a muddle on this side as well, the incredible surging stock market took a 200 point hit on the Dow today. Emerging market slippage added to the slide as the numbers out of Brazil were surprisingly (for some) poor. It might be a rather good ideal if one of the geniuses on tv wandered on down and asked those folks whatsup. What they would get is an earful of what this glut of money spewing forth from the Fed and soon-to-come ECB means to growth markets like Brazil: the inflationary pressure it causes makes it very difficult for these guys to cope. Best so far has been Mexico but it has been a struggle. But spewing along we go with Richard Fisher about the only guy in town who seems to understand what it is we may be causing.
Finally, Wells Fargo today put out a rather interesting report that didn;t get the coverage it should have given the political bent of the popular press. According to the Stagecoach, the greatly improving employment number has been more of a function of people simply stopping to search for jobs rather than a true economic shift. Run the numbers in the same manner and the real unemployment rate is 11.8% not 8.3%. I don't know. Ther have been earlier comments like this but things around here are looking a bit better, yet the study was pretty convincing. Problem is, we are not disconnected from the rest of the world; if folks are right about Europe and emerging markets, any positive move here no matter how real is unsustainable. And as for China? Good news there. My Really Smart Friend, Larry is there as we speak. We'll have the true scoop in a day or tow. Be patient.
Wednesday, April 6, 2011
RANDON THOUGHTS
Well, I am an idiot. Notre Dame stank it up almost as bad as Butler the night before and as a result Hoosiers 2 will not be coming shortly to a theater near you. The Mid-West is in mourning. Congrats Huskies and Aggies.
Portugal raise arounf 1 billion Euros today in 6 and 12 month bills carrying yields of 5.1 and 5.9 per cent respectively. Way too high to be in any way sustainable. The coverage ratio was well over 2x but nobody is really sure who the buyers might be. They sure weren't the Portugese banks. Methinks the actors in this play must be the ECB and sovereigns of various shapes and sizes. How does Brazil and China sound? More importantly, does anyone see a pattern emerging? Nobody appears to be standing in line to buy U.S. Treasury obligations...just like Portugal and Greece and the maturity of what is being issued appears to be getting shorter and shorter...just like Portugal and Greece. Odd, don't you think?
If you listen to the Dems on the Hill and the NY Times, Rep. Ryan is the Anti-Christ. Knew it would be bad but the reaction now they got their talking points all lined up is downright over the top. One wag went so far as to accuse him of attempting to solve the problem by insuring that seniors would die early from lack of medical care. Ryan was on the Obama fiscal commission but declined to endorse the majority report and yet he incorporated a good deal of the broad recommendations of that report with changes, of course. I guess I will never be a politician but for the life of me I cannot understand why he did not give more credit to that report and the commissions two chairs which The Leader completely ignored. I also think there is too much talk on his side about reducing taxes to spur growth and too little talk of the commission's and my idea that even with a reduction in marginal rates the flattening of the code and the removal of deductions and loopholes will undoubtably produce more revenue which is the key of course, not taxe rates. Taxes must be paid to produce revenue. When GE has 1000 tax attorneys looking for ways NOT to pay taxes, coupled with high priced lobbiests, the result will be what we have read about in the papers...every time. By the way, one thing that is missing in Rep. Ryan's proposal is some method by which if we get anything good it had better be carved in stone otherwise the first chance a single party gets to change things, it will. Are you waiting like I am to see what little Paulie has to say tomorrow? It should be great.
Finally, with all of this going on, the Euro is up around 1.43 and Oil at $109. Going to visit the grandkids this weekend and are not looking forward to gassing up. Guess I shouldn't worry, however, as Ben and Bill the Dud tell me prices aren't going up. I feel better just thinking about those guys being in control.
Portugal raise arounf 1 billion Euros today in 6 and 12 month bills carrying yields of 5.1 and 5.9 per cent respectively. Way too high to be in any way sustainable. The coverage ratio was well over 2x but nobody is really sure who the buyers might be. They sure weren't the Portugese banks. Methinks the actors in this play must be the ECB and sovereigns of various shapes and sizes. How does Brazil and China sound? More importantly, does anyone see a pattern emerging? Nobody appears to be standing in line to buy U.S. Treasury obligations...just like Portugal and Greece and the maturity of what is being issued appears to be getting shorter and shorter...just like Portugal and Greece. Odd, don't you think?
If you listen to the Dems on the Hill and the NY Times, Rep. Ryan is the Anti-Christ. Knew it would be bad but the reaction now they got their talking points all lined up is downright over the top. One wag went so far as to accuse him of attempting to solve the problem by insuring that seniors would die early from lack of medical care. Ryan was on the Obama fiscal commission but declined to endorse the majority report and yet he incorporated a good deal of the broad recommendations of that report with changes, of course. I guess I will never be a politician but for the life of me I cannot understand why he did not give more credit to that report and the commissions two chairs which The Leader completely ignored. I also think there is too much talk on his side about reducing taxes to spur growth and too little talk of the commission's and my idea that even with a reduction in marginal rates the flattening of the code and the removal of deductions and loopholes will undoubtably produce more revenue which is the key of course, not taxe rates. Taxes must be paid to produce revenue. When GE has 1000 tax attorneys looking for ways NOT to pay taxes, coupled with high priced lobbiests, the result will be what we have read about in the papers...every time. By the way, one thing that is missing in Rep. Ryan's proposal is some method by which if we get anything good it had better be carved in stone otherwise the first chance a single party gets to change things, it will. Are you waiting like I am to see what little Paulie has to say tomorrow? It should be great.
Finally, with all of this going on, the Euro is up around 1.43 and Oil at $109. Going to visit the grandkids this weekend and are not looking forward to gassing up. Guess I shouldn't worry, however, as Ben and Bill the Dud tell me prices aren't going up. I feel better just thinking about those guys being in control.
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