investmentwatchblog--2020-05-20--What Unicorn Money-Sinkholes Actually Disrupt

They have accomplished an amazing feat : losing tons of money year after year during the Good Times in what were profitable industries .
By Wolf Richter .
This is the transcript from my podcast last Sunday , THE WOLF STREET REPORT : What do the companies Wayfair , Zillow , Uber , Lyft , WeWork , Carvana , Tesla , Airbnb , Casper Sleep , Zume , and many others have in common in addition to their current or former status as unicorns with huge valuations ?
There is one fundamental thing they all have in common : Supported @ @ @ @ @ @ @ flow of investor money , they barged into profitable industries , such as retailing furniture , house flipping , real estate brokerage , taxi operations , serviced temporary offices , selling used cars , manufacturing new cars , retailing mattresses , pizza delivery , and the like , and they disrupted them by throwing around often billions of dollars that they obtained in wave after wave from investors .
And in these profitable industries , they accomplished an amazing feat : they managed very successfully to lose a running ton of money , @ @ @ @ @ @ @ while getting their feet on the ground , but year after year , in many cases for over a decade , without hopes of ever making a profit as defined , not by their own home-made metrics , but by Generally Accepted Accounting Principles , or GAAP .
And in the process , they turned themselves into money-sinkholes , supported and subsidized by investors ’ willingness to throw good money after bad , right into that sinkhole .
That ’ s how these companies disrupted : They turned classic profitable business models – @ @ @ @ @ @ @ – into endless cash-burn machines .
And it took a lot of genius to accomplish that .
These are not teeny-weeny startups .
Many of these companies have been around for over a decade , have thousands or tens-of-thousands of employees , and they ’ re still losing a running ton of money each year even during the Good Times , that are now over .
Whereas the companies that have been in these industries before them – often small operations , such as house flippers or taxi companies , furniture stores , @ @ @ @ @ @ @ to stay alive – and if they start losing money , they ’ re gone .
Even before the crisis , publicly traded US companies were a money-losing bunch .
As stocks reached an all-time high in January and February during the end of the Good Times , nearly 40 % of the listed US companies had lost money in the prior 12 months , according to the Wall Street Journal back then .
Outside of post-recession periods where companies always book big losses or go bankrupt , that is the highest percentage @ @ @ @ @ @ @ are essentially dead so far this year .
And those that flew out the IPO window last year already ran into trouble .
The entire IPO market came unglued in the second half .
This was well before the Covid-19 crisis .
But three-quarters of the IPOs last year were money losing companies – including Uber and Lyft .
In 2018 , 81 % were money losing companies .
It matched the 81 % money-losing-companies record set in the year 2000 , the peak of the dot-come bubble that then collapsed .
Both @ @ @ @ @ @ @ the all-time record for money-losing IPOs .
So what are we really looking at here with Wayfair , Zillow , Redfin , Compass , Uber , Lyft , WeWork , Carvana , Tesla , Airbnb , Casper Sleep , Zume , just to cite a few ?
These are companies that have an app – OK , anyone can have an app these days – and they ’ re doing what other companies have been doing for a long time , except these new entries are losing a ton of money doing it @ @ @ @ @ @ @ .
Wayfair is an online furniture retailer .
I ’ ve used it , and it was OK.
I ’ ve used other furniture retailers , and they were OK too .
The thing that makes Wayfair is that its losses have nearly doubled every year .
They ’ re rising on an exponential curve : from $ 77 million in losses in 2015 to $ 194 million in losses in 2016 , to $ 245 million in 2017 , to $ 504 million in 2018 , to nearly $ 1 billion in @ @ @ @ @ @ @ see what 2020 will look like .
It ’ s going to be a doozie .
During the stay-at-home phase of our economy , consumption has shifted to the internet , and Wayfair sales will likely rise sharply in the current quarter , but the losses will make our ears ring – because Wayfair operates on the principle : the more it sells , the more it loses .
A regular furniture retailer has to make money long term .
They can not lose money year after year .
But Wayfair can .
@ @ @ @ @ @ @ , it will have lost over $ 3 billion since 2015 .
A furniture retailer like this should be worthless , and when it runs out of money , it would need to file for bankruptcy , like JCPenney did on Friday .
But these companies are different from JCPenney in that investors keep throwing good money after bad at them .
They keep funding the losses of these companies when they raise more capital by selling more shares or issuing bonds .
And by being able to raise more money , and @ @ @ @ @ @ @ these companies see that they have the investors ’ approval to just keep burning their cash .
Then there are the house flippers and real estate brokerages .
Both , house flipping and real estate brokerage , are profitable businesses , if done right .
A friend of mine is a house flipper .
He ’ s got some employees , and he ’ s using some contractors , and he is buying run-down homes , rehabs them thoroughly , and then sells them at a profit .
The real value he adds @ @ @ @ @ @ @ to the neighborhood , is the rehab .
His business survived the housing bust .
It was tough , and he had to find renters for some of the homes , but he got through it .
And he ’ s likely to get through the next crisis – because in the good times , he makes lots of money .
That ’ s how that works .
Zillow and Redfin are now also into house flipping .
And even during the best of times , they lost a ton of money doing @ @ @ @ @ @ @ it .
Losing money for these investors is a badge of honor .
Both of these companies have been around for many years .
Redfin , which is also a real estate brokerage , lost money every single year over the past five years .
Over the past three years , during the Good Times , its losses have doubled each year .
Zillow became a house flipper in early 2019 .
And since then , its quarterly loss has more than doubled .
This was during the Good Times , before the @ @ @ @ @ @ @ operation , with some side hustles in e-scooter rentals , food delivery , and freight , has lost $ 18 billion over the past five years .
That was during the Good Times .
Carvana is an internet-only used car dealer .
Selling used cars is very profitable .
It ’ s profitable even during tough times .
But not at Carvana .
Over the past five years , during the Good Times , its losses surged year after year .
It lost $ 37 million in 2015 ; and by 2019 , @ @ @ @ @ @ @ 364 million .
The more it sells , the more it loses .
And on and on and on .
All these companies disrupted existing industries with reckless losses .
And investors rewarded them by given them more money , rather than cutting them off until they come to their senses or file for bankruptcy .
If a company that has been in business for years and has thousands of employees and hundreds of millions or billions of dollars in sales , and it can not make a decent profit during the Good @ @ @ @ @ @ @ a functional business model .
Having a functional business model means conducting business in a profitable way over the long term .
This means that during the Good Times , the company must make a solid profit , and during the bad times it might have to scramble .
But these companies lose money hand over fist even during the best of times .
They ’ re designed that way , and executives are rewarded that way , and investors want it that way .
They disrupt existing industries by not having to @ @ @ @ @ @ @ has to be a self-sustaining enterprise .
The easiest thing in the world is to run a money-losing business , where bigger losses are better .
As long as investors are willing to pay for it .
The hard part is bamboozling investors into paying for it .
The only way they disrupt is by having temporarily changed the logic of business – that a successful business is now a cash-burn machine , and the more cash it burns the better .
And it took a lot of genius to accomplish that .
@ @ @ @ @ @ @ corporate investors into enthusiastically and unquestioningly going along with this , and making them believe in this new religion .
And that works for a while .
But in the end , there is the harsh reality of business , as the dot-com crash has shown when most of these companies disappeared , and as the current generation of unicorn busts is beginning to show , and as this crisis is beginning to show .

They have accomplished an amazing feat: losing tons of money year after year during the Good Times in what were profitable industries.
By Wolf Richter. This is the transcript from my podcast last Sunday, THE WOLF STREET REPORT:
What do the companies Wayfair, Zillow, Uber, Lyft, WeWork, Carvana, Tesla, Airbnb, Casper Sleep, Zume, and many others have in common in addition to their current or former status as unicorns with huge valuations?
There is one fundamental thing they all have in common: Supported by what seemed to be an endless flow of investor money, they barged into profitable industries, such as retailing furniture, house flipping, real estate brokerage, taxi operations, serviced temporary offices, selling used cars, manufacturing new cars, retailing mattresses, pizza delivery, and the like, and they disrupted them by throwing around often billions of dollars that they obtained in wave after wave from investors.
And in these profitable industries, they accomplished an amazing feat: they managed very successfully to lose a running ton of money, not just the first year or two while getting their feet on the ground, but year after year, in many cases for over a decade, without hopes of ever making a profit as defined, not by their own home-made metrics, but by Generally Accepted Accounting Principles, or GAAP.
And in the process, they turned themselves into money-sinkholes, supported and subsidized by investors’ willingness to throw good money after bad, right into that sinkhole. That’s how these companies disrupted: They turned classic profitable business models – from house flipping to used car sales – into endless cash-burn machines. And it took a lot of genius to accomplish that.
These are not teeny-weeny startups. Many of these companies have been around for over a decade, have thousands or tens-of-thousands of employees, and they’re still losing a running ton of money each year even during the Good Times, that are now over.
Whereas the companies that have been in these industries before them – often small operations, such as house flippers or taxi companies, furniture stores, or used-car dealers … they have to make money to stay alive – and if they start losing money, they’re gone.
Even before the crisis, publicly traded US companies were a money-losing bunch. As stocks reached an all-time high in January and February during the end of the Good Times, nearly 40% of the listed US companies had lost money in the prior 12 months, according to the Wall Street Journal back then. Outside of post-recession periods where companies always book big losses or go bankrupt, that is the highest percentage since the 1990s.
OK, IPOs are essentially dead so far this year. And those that flew out the IPO window last year already ran into trouble. The entire IPO market came unglued in the second half. This was well before the Covid-19 crisis.
But three-quarters of the IPOs last year were money losing companies – including Uber and Lyft. In 2018, 81% were money losing companies. It matched the 81% money-losing-companies record set in the year 2000, the peak of the dot-come bubble that then collapsed. Both those years, 2018 and 2000 share the all-time record for money-losing IPOs.
So what are we really looking at here with Wayfair, Zillow, Redfin, Compass, Uber, Lyft, WeWork, Carvana, Tesla, Airbnb, Casper Sleep, Zume, just to cite a few?
These are companies that have an app – OK, anyone can have an app these days – and they’re doing what other companies have been doing for a long time profitably , except these new entries are losing a ton of money doing it.
Let’s start with Wayfair. Wayfair is an online furniture retailer. I’ve used it, and it was OK. I’ve used other furniture retailers, and they were OK too. The thing that makes Wayfair unique is that its losses have nearly doubled every year. They’re rising on an exponential curve: from $77 million in losses in 2015 to $194 million in losses in 2016, to $245 million in 2017, to $504 million in 2018, to nearly $1 billion in losses in 2019.
I dread to see what 2020 will look like. It’s going to be a doozie. During the stay-at-home phase of our economy, consumption has shifted to the internet, and Wayfair sales will likely rise sharply in the current quarter, but the losses will make our ears ring – because Wayfair operates on the principle: the more it sells, the more it loses.
A regular furniture retailer has to make money long term. They cannot lose money year after year. But Wayfair can. By the time 2020 is accounted for, it will have lost over $3 billion since 2015. A furniture retailer like this should be worthless, and when it runs out of money, it would need to file for bankruptcy, like JCPenney did on Friday.
But these companies are different from JCPenney in that investors keep throwing good money after bad at them. They keep funding the losses of these companies when they raise more capital by selling more shares or issuing bonds. And by being able to raise more money, and by having a super-inflated share price, these companies see that they have the investors’ approval to just keep burning their cash.
We are primarily funded by readers. Please subscribe and donate to support us!
Then there are the house flippers and real estate brokerages. Both, house flipping and real estate brokerage, are profitable businesses, if done right.
A friend of mine is a house flipper. He’s got some employees, and he’s using some contractors, and he is buying run-down homes, rehabs them thoroughly, and then sells them at a profit. The real value he adds – not just to the house but to the neighborhood, is the rehab. His business survived the housing bust. It was tough, and he had to find renters for some of the homes, but he got through it. And he’s likely to get through the next crisis – because in the good times, he makes lots of money. That’s how that works.
Zillow and Redfin are now also into house flipping. And even during the best of times, they lost a ton of money doing it. But investors loved them for it. Losing money for these investors is a badge of honor. Both of these companies have been around for many years.
Redfin, which is also a real estate brokerage, lost money every single year over the past five years. Over the past three years, during the Good Times, its losses have doubled each year.
Zillow became a house flipper in early 2019. And since then, its quarterly loss has more than doubled. This was during the Good Times, before the Crisis.
Uber, the global taxi operation, with some side hustles in e-scooter rentals, food delivery, and freight, has lost $18 billion over the past five years. That was during the Good Times.
Carvana is an internet-only used car dealer. Selling used cars is very profitable. It’s profitable even during tough times. But not at Carvana. Over the past five years, during the Good Times, its losses surged year after year. It lost $37 million in 2015; and by 2019, its annual loss had ballooned to $364 million. The more it sells, the more it loses.
And on and on and on.
All these companies disrupted existing industries with reckless losses. And investors rewarded them by given them more money, rather than cutting them off until they come to their senses or file for bankruptcy.
If a company that has been in business for years and has thousands of employees and hundreds of millions or billions of dollars in sales, and it cannot make a decent profit during the Good Times, it doesn’t have a functional business model.
Having a functional business model means conducting business in a profitable way over the long term. This means that during the Good Times, the company must make a solid profit, and during the bad times it might have to scramble.
But these companies lose money hand over fist even during the best of times. They’re designed that way, and executives are rewarded that way, and investors want it that way. They disrupt existing industries by not having to stick to the principle that a business has to be a self-sustaining enterprise.
The easiest thing in the world is to run a money-losing business, where bigger losses are better. As long as investors are willing to pay for it. The hard part is bamboozling investors into paying for it.
The only way they disrupt is by having temporarily changed the logic of business – that a successful business is now a cash-burn machine, and the more cash it burns the better. And it took a lot of genius to accomplish that.
The genius lies in bamboozling public and corporate investors into enthusiastically and unquestioningly going along with this, and making them believe in this new religion. And that works for a while. But in the end, there is the harsh reality of business, as the dot-com crash has shown when most of these companies disappeared, and as the current generation of unicorn busts is beginning to show, and as this crisis is beginning to show.


investmentwatchblog--2020-05-20--During the Last Financial Crisis, Even Ecommerce Sales Plunged. Not This Time

Ecommerce Spiked to Record .
Mall Stores Got Hung Out to Dry .
Walmart ’ s Online Sales , Still Woefully Behind , Shot Up 74 % Walmart US ecommerce sales set the tone .
Being the largest grocery seller in the US , it didn ’ t have to close its stores .
Nevertheless , its ecommerce sales soared 74 % in the first quarter , compared to Q1 a year ago , Walmart reported today .
This would be an increase of $ 3.2 billion from a year ago to $ 7.5 billion .
But Walmart US had @ @ @ @ @ @ @ of ecommerce ; while it is now rapidly catching up , its ecommerce sales in Q1 were still only 8.5 % of its Walmart US sales .
By contrast , in 2019 , Nordstrom ’ s online sales already accounted for over one-third of its total sales , and Macy ’ s online sales accounted for 26 % of its total sales .
They both will report a surge in online sales in Q1 .
But Walmart ’ s 74 % surge in Q1 ( up from prior increases in the 30 % @ @ @ @ @ @ @ strong results ” for its online grocery business .
This is a sign that consumers are beginning to see the possibilities of shopping for groceries online , whether the order is being delivered to the home or picked up at the store .
The Commerce Department today reported ecommerce sales ( along with revised retail sales ) for the first quarter ( January through March ) .
But the calendar quarter doesn ’ t line up with the Q1 reporting periods by retailers ( February through April ) .
And the shifts due @ @ @ @ @ @ @ few weeks of the calendar quarter , when overall retail sales began to plunge .
Nevertheless , ecommerce sales in Q1 – and this includes the ecommerce sales of brick-and-mortar retailers such as Walmart , Home Depot , and Macy ’ s – jumped 14.5 % from the first quarter last year , to a record $ 160.3 billion ( seasonally adjusted ) .
Note the drop in ecommerce sales during the Financial Crisis , producing the only three quarters of year-over-year declines in the recorded history of ecommerce ( bottoming out at @ @ @ @ @ @ @ In this crisis , the opposite is happening : Retail sales ecommerce were nearly flat ( +0.6 % ) in Q1 , dragged down by the shifts due to the pandemic that began toward the end of the quarter .
On a month-to-month basis , seasonally adjusted , January retail sales were fairly strong ; February retail sales edged down already ; March retail sales dropped 8.3 % ; and April retail sales plunged 16 % .
So the biggest part of the drop fell outside of Q1 , as did the biggest @ @ @ @ @ @ @ that Walmart and other retailers are reporting .
Retail sales include sales at gas stations , auto dealers , and grocery and beverage stores .
These categories account for 55 % of brick-and-mortar retail sales .
So far , they have largely been able to resist ecommerce – though that ’ s changing for used vehicle dealers and supermarkets , which face increasing online competition , including from Walmart ’ s online grocery sales .
It ’ s the remaining 45 % of brick-and-mortar sales that are getting crushed – largely retailers that @ @ @ @ @ @ @ .
Let ’ s call them “ mall stores ” : They include these categories , with sample bankrupt chains in parentheses : Combined sales at these “ mall stores ” had peaked in Q4 2007 at $ 164 billion , fell during the Financial Crisis , then spend years trying to climb back to the 2007 level , but never quite made it .
Since 2015 , sales at these mall stores has trended lower as the bankruptcies and liquidations fell on top of each other .
Then in Q1 2020 , @ @ @ @ @ @ @ quarter and 11.6 % from a year ago , to $ 137 billion , the lowest level this century , even as ecommerce surged : Before the pandemic began scrambling up retail sales , eMarkerter estimated the market share of the top 10 US ecommerce sellers as a percent of total ecommerce sales this way ( as of February 28 ) : Target had made its way into the lineup for the first time .
Walmart over the years has worked itself into second place , surpassing eBay and Apple .
And Macy @ @ @ @ @ @ @ the middle of the list , has fallen to the bottom of the list .
Retailers that use the Amazon platform as third-party vendors count as Amazon retail sales .
The combined market share of the top ten amounts to 72 % of ecommerce sales .
The remaining 28 % is carved up by myriad other retailers .
The Commerce Department ’ s retail and ecommerce sales exclude travel services and tickets of all kinds ( they ’ re not considered “ retail ” but services ) .
So the plunge in sales @ @ @ @ @ @ @ or sports events or movie theaters is not included in the data .
The second quarter will fully display the shifts and effects of the pandemic on retail sales .
We know already that sales at the “ mall stores ” will plunge further even as some are now gradually re-opening , while others are tangled up in bankruptcy proceedings .
And from what retailers have said so far , their ecommerce sales will soar .
These dynamics will completely change the above ecommerce-vs-mall-stores chart .
Given how habit-forming ecommerce has been over @ @ @ @ @ @ @ it will be interesting to see if brick-and-mortar retailers can unwind the pandemic-produced market-share gains of ecommerce ; or if , as I suspect , many of these gains are permanent , with most consumers content to keep going that way , which would leave brick-and-mortar stores and the properties they occupy in an untenable situation a lot sooner than anyone expected .

Ecommerce Spiked to Record. Mall Stores Got Hung Out to Dry. Walmart’s Online Sales, Still Woefully Behind, Shot Up 74%
Walmart US ecommerce sales set the tone. Being the largest grocery seller in the US, it didn’t have to close its stores. Nevertheless, its ecommerce sales soared 74% in the first quarter, compared to Q1 a year ago, Walmart reported today. This would be an increase of $3.2 billion from a year ago to $7.5 billion. But Walmart US had fallen woefully behind during the early years of ecommerce; while it is now rapidly catching up, its ecommerce sales in Q1 were still only 8.5% of its Walmart US sales.
By contrast, in 2019, Nordstrom’s online sales already accounted for over one-third of its total sales, and Macy’s online sales accounted for 26% of its total sales. They both will report a surge in online sales in Q1.
But Walmart’s 74% surge in Q1 (up from prior increases in the 30% to 40% range) includes “strong results” for its online grocery business. This is a sign that consumers are beginning to see the possibilities of shopping for groceries online, whether the order is being delivered to the home or picked up at the store.
The Commerce Department today reported ecommerce sales (along with revised retail sales) for the first quarter (January through March). But the calendar quarter doesn’t line up with the Q1 reporting periods by retailers (February through April). And the shifts due to the pandemic fell into the last few weeks of the calendar quarter, when overall retail sales began to plunge.
Nevertheless, ecommerce sales in Q1 – and this includes the ecommerce sales of brick-and-mortar retailers such as Walmart, Home Depot, and Macy’s – jumped 14.5% from the first quarter last year, to a record $160.3 billion (seasonally adjusted).
Note the drop in ecommerce sales during the Financial Crisis, producing the only three quarters of year-over-year declines in the recorded history of ecommerce (bottoming out at -7.7% in Q4 2008). In this crisis, the opposite is happening:
Retail sales without ecommerce were nearly flat (+0.6%) in Q1, dragged down by the shifts due to the pandemic that began toward the end of the quarter. On a month-to-month basis, seasonally adjusted, January retail sales were fairly strong; February retail sales edged down already; March retail sales dropped 8.3%; and April retail sales plunged 16%. So the biggest part of the drop fell outside of Q1, as did the biggest part of the blistering shift to ecommerce that Walmart and other retailers are reporting.
Retail sales include sales at gas stations, auto dealers, and grocery and beverage stores. These categories account for 55% of brick-and-mortar retail sales. So far, they have largely been able to resist ecommerce – though that’s changing for used vehicle dealers and supermarkets, which face increasing online competition, including from Walmart’s online grocery sales.
We are primarily funded by readers. Please subscribe and donate to support us!
It’s the remaining 45% of brick-and-mortar sales that are getting crushed – largely retailers that populate shopping malls and strip shopping centers. Let’s call them “mall stores”: They include these categories, with sample bankrupt chains in parentheses:
Combined sales at these “mall stores” had peaked in Q4 2007 at $164 billion, fell during the Financial Crisis, then spend years trying to climb back to the 2007 level, but never quite made it. Since 2015, sales at these mall stores has trended lower as the bankruptcies and liquidations fell on top of each other. Then in Q1 2020, sales plunged 11% from the prior quarter and 11.6% from a year ago, to $137 billion, the lowest level this century, even as ecommerce surged:
Before the pandemic began scrambling up retail sales, eMarkerter estimated the market share of the top 10 US ecommerce sellers as a percent of total ecommerce sales this way (as of February 28):
Amazon: 38.7% Walmart: 5.3% eBay: 4.7% Apple: 3.7% Home Depot: 1.7% Wayfair: 1.5% Best Buy: 1.3% Target: 1.2% Costco: 1.2% Macy’s 1.1%
Target had made its way into the lineup for the first time. Walmart over the years has worked itself into second place, surpassing eBay and Apple. And Macy’s which had been closer to the middle of the list, has fallen to the bottom of the list. Retailers that use the Amazon platform as third-party vendors count as Amazon retail sales. The combined market share of the top ten amounts to 72% of ecommerce sales. The remaining 28% is carved up by myriad other retailers.
The Commerce Department’s retail and ecommerce sales exclude travel services and tickets of all kinds (they’re not considered “retail” but services). So the plunge in sales of airline tickets and tickets to entertainment or sports events or movie theaters is not included in the data.
The second quarter will fully display the shifts and effects of the pandemic on retail sales. We know already that sales at the “mall stores” will plunge further even as some are now gradually re-opening, while others are tangled up in bankruptcy proceedings. And from what retailers have said so far, their ecommerce sales will soar. These dynamics will completely change the above ecommerce-vs-mall-stores chart.
Given how habit-forming ecommerce has been over the past 20 years among consumers, it will be interesting to see if brick-and-mortar retailers can unwind the pandemic-produced market-share gains of ecommerce; or if, as I suspect, many of these gains are permanent, with most consumers content to keep going that way, which would leave brick-and-mortar stores and the properties they occupy in an untenable situation a lot sooner than anyone expected.


investmentwatchblog--2020-05-20--Purchases of uncollateralized debt, using 10-to-1 leverage beyond Congressionally allocated funds, a

Purchases of uncollateralized debt, using 10-to-1 leverage beyond Congressionally allocated funds, and treating those uncollateralized bonds AS THEIR OWN COLLATERAL, reflects neither the “letter” nor the “spirit” of the law.

Purchases of uncollateralized debt , using 10-to-1 leverage beyond Congressionally allocated funds , and treating those uncollateralized bonds AS THEIR @ @ @ @ @ the `` letter '' nor the `` spirit '' of the law .
@ FederalReserve @ @ @

Purchases of uncollateralized debt, using 10-to-1 leverage beyond Congressionally allocated funds, and treating those uncollateralized bonds AS THEIR OWN COLLATERAL, reflects neither the "letter" nor the "spirit" of the law.@FederalReserve @ChrisVanHollen t.co/2RLow3Czz9
— John P. Hussman (@hussmanjp) May 19, 2020


investmentwatchblog--2020-05-20--Discover the Central Bank secrets nobody’s talking about!! And is GOLD cheap right now?? The intel Y

NEW INTERVIEW !
Discover the Central Bank secrets nobody ’ s talking about !
!
And is GOLD cheap right @ @ @ @ @ YOU NEED !
🔥😎👍

NEW INTERVIEW! Discover the Central Bank secrets nobody’s talking about!! And is GOLD cheap right now?? The intel YOU NEED! 🔥😎👍
Emil Kalinowski (Host of "Making Sense/Eurodollar University") RCS Ep. 50 t.co/GSvzY3ZPUf via @YouTube
Special thx @emilkalinowski
— George Gammon (@GeorgeGammon) May 20, 2020


investmentwatchblog--2020-05-20--It is so easy to be wrong—and to persist in being wrong—when the costs of being wrong are paid by ot

It is so easy to be wrong—and to persist in being wrong—when the costs of being wrong are paid by @ @

It is so easy to be wrong—and to persist in being wrong—when the costs of being wrong are paid by others. — Thomas Sowell (@ThomasSowell) May 20, 2020
Every #Fed purchase of junk bonds is another dagger in the heart of capitalism. t.co/7SUmw26aWq — Jeffrey W. Rrrross, MD, MBA (@VailshireCap) May 19, 2020
Herablife selling $600 million in junk bonds to fund …. share buybacks.t.co/gmrQx4mIRy by @PSeligson — Tracy Alloway (@tracyalloway) May 20, 2020
A look at this cycle’s growth in non-financial corporations’ net leverage shows fairly steady trend of increased borrowing @bloomberg pic.twitter.com/S4857mWns6 — Liz Ann Sonders (@LizAnnSonders) May 19, 2020


investmentwatchblog--2020-05-20--One of the reasons why massive QEs are disinflationary is because they incentivize malinvestment and

One of the reasons why massive QEs are disinflationary is because they incentivize malinvestment and perpetuate overcapacity, zombifying the economy.

A chicken and egg scenario involving the Fed has emerged .
Who is following whom ?
t.co/j0gNNBx0CQ The US economy @ @ @ @ @ a proliferation of zombie companies before this crisis hit .
It would seem doubling down @ @ @ @ @ most logical path ( nowhere ) .
At least that ’ s the Fed ’ @ @

A chicken and egg scenario involving the Fed has emerged. Who is following whom? t.co/j0gNNBx0CQ
The US economy was already weighed down by a proliferation of zombie companies before this crisis hit. It would seem doubling down to guarantee sclerotic growth the most logical path (nowhere). At least that’s the Fed’s thinking.t.co/yE0Rhs78jA
ht @jessefelder pic.twitter.com/tzPnRaYtOX
— Danielle DiMartino Booth (@DiMartinoBooth) May 19, 2020


investmentwatchblog--2020-05-20--All Earning Releases for next week (Week of May 25th). Important ones highlighted in red.

As promised , here are the earnings for next week .
I ’ m posting so you guys can play @ @ @ @ @ comes out with their graphic .
Just like last time , the tickers are ordered @ @ @ @ @ ve removed all companies under a marketcap of 150M .
The highlighted ones are just @ @ @ @ @ glance .
Disclaimer : This information is only for educational purposes .
Do not make @ @ @ @ @ the information in this article .
Do you own due diligence .

by AveenoFresh
As promised, here are the earnings for next week. I’m posting so you guys can play earnings wayyyy before earnings whisper comes out with their graphic.
We are primarily funded by readers. Please subscribe and donate to support us!
Just like last time, the tickers are ordered by marketcap and I’ve removed all companies under a marketcap of 150M. The highlighted ones are just companies I recognize at a glance.
Disclaimer: This information is only for educational purposes. Do not make any investment decisions based on the information in this article. Do you own due diligence.


investmentwatchblog--2020-05-20--MSACSR – The numbers for April will come out on Thursday.

Next release : Existing-Home Sales data release for April 2020 is scheduled for Thursday , May 21 , 2020 .

Next release: Existing-Home Sales data release for April 2020 is scheduled for Thursday, May 21, 2020.


investmentwatchblog--2020-05-20--“This is still the most bearish bear market that we have seen so early in a global recession. It’s t

“This is still the most bearish bear market that we have seen so early in a global recession. It’s too early to call the all-clear.”

"This is still the most bearish bear market that we have seen so early in a global recession. It’s too early to call the all-clear." pic.twitter.com/S2XGANLyur — Yield Curve (@TenYearNote) May 19, 2020
2940.77 the 200 EMA needs to hold – failure at the swing and then the 200 EMA is generally a sell signal – Macro view – big bear bull fight going on. pic.twitter.com/mvrgDXYCVu — David Larew (@ThinkTankCharts) May 19, 2020
In Georgia, where restaurants have been open for three weeks, bookings are still down by 84% t.co/fqlY1AT9Xr — The Economist (@TheEconomist) May 20, 2020
The retail sales report in the US suggests a disastrous fall in personal consumption which amounts to 70% of GDP. @yardeni via @SoberLook pic.twitter.com/a2jTxJ5mXr — Adam Tooze (@adam_tooze) May 18, 2020


investmentwatchblog--2020-05-20--I feel like the days of limit down are lurking…

According to a Bank of America Fund Manager survey , 68 % of fund managers are calling this a ‘ @ @ @ @ @ • 68 % of fund managers say this is a bear market rally , not @ @ @ @ @ they predict a SP500 level of 3020 , 2 % up from now .
• @ @ @ @ @ is a 2nd wave of COVID ; the biggest hope is a vaccine .
This @ @ @ @ @ example of Keynes ’ Beauty Contest , where a social consensus about likely group behavior @ @ @ @ @ , but knowledge of others ’ individual judgements .
If these managers intuited the survey @ @ @ @ @ knows everybody thinks the market is overpriced , but they also trust the group not @ @ @ @ @ .
Government predicts GDP will tumble by 38 % , the greatest single drop in @

I feel like the days of limit down are lurking…… — LatinOptionsTrader (@BrownTexasNinja) May 19, 2020
this would bring about 2650 on the s&p 500 pic.twitter.com/9J7cY9WopD — hks55 (@hks55) May 19, 2020
love looking at the weekly chart mid week. tells you a lot imo. i dont want to say these two arrows are the same buttttttttt……………..same. pic.twitter.com/qCMMAskTiT — hks55 (@hks55) May 19, 2020
Reminder: forwards don't matter because it's apparently different this time. pic.twitter.com/RPZOlbf4mF — Not Jim Cramer (@Not_Jim_Cramer) May 19, 2020
Office Depot Layoffs 2020: 13,100 Jobs Cut, Store Closures, And Shuttered Distribution Centers
According to a Bank of America Fund Manager survey, 68% of fund managers are calling this a ‘bear market rally’.
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68% of fund managers say this is a bear market rally, not based on fundamentals
but they predict a SP500 level of 3020, 2% up from now.
They think the biggest risk is a 2nd wave of COVID; the biggest hope is a vaccine.
This seems to be a classic example of Keynes’ Beauty Contest, where a social consensus about likely group behavior overrides not just individual judgement, but knowledge of others’ individual judgements. If these managers intuited the survey results already, then everybody knows everybody thinks the market is overpriced, but they also trust the group not to act on this belief.
Government predicts GDP will tumble by 38%, the greatest single drop in history


investmentwatchblog--2020-05-20--LOL THIS CANNOT BE REAL… I would rather eat sh*t alone

LOL THIS CAN NOT BE REAL… I would rather eat shit alone t.co/K8rG77cvHX

LOL THIS CANNOT BE REAL… I would rather eat shit alone t.co/K8rG77cvHX
— Mr Foxnose (@asymmetricalpha) May 19, 2020


investmentwatchblog--2020-05-20--There needs to be an SEC investigation into Moderna.

There needs to be an SEC investigation into Moderna .
Everything about what the CEO did yesterday wreaks of manipulation .
Went on CNBC pre market to read off the results of phase 1 so the stock will rip 30 % at the open so he can do an equity offering that afternoon There needs to be an SEC investigation into Moderna .
Everything about what the CEO did yesterday wreaks of manipulation .
Went on CNBC pre market to read off the results of phase 1 so the stock will rip 30 % at the open so he can @ @ @ @ @ @ @ hearts soared Monday with news that Moderna ’ s Covid-19 vaccine candidate — the frontrunner in the American market — seemed to be generating an immune response in Phase 1 trial subjects .
The company ’ s stock valuation also surged , hitting $ 29 billion , an astonishing feat for a company that currently sells zero products .
But was there good reason for so much enthusiasm ?
Several vaccine experts asked by STAT concluded that , based on the information made available by the Cambridge , Mass.-based company , there ’ @ @ @ @ @ @ @ impressive — or not — the vaccine may be .
While Moderna blitzed the media , it revealed very little information — and most of what it did disclose were words , not data .
That ’ s important : If you ask scientists to read a journal article , they will scour data tables , not corporate statements .
With science , numbers speak much louder than words .
Even the figures the company did release don ’ t mean much on their own , because critical information — effectively the key @ @ @ @ @ @ @

There needs to be an SEC investigation into Moderna. Everything about what the CEO did yesterday wreaks of manipulation. Went on CNBC pre market to read off the results of phase 1 so the stock will rip 30% at the open so he can do an equity offering that afternoon
There needs to be an SEC investigation into Moderna. Everything about what the CEO did yesterday wreaks of manipulation. Went on CNBC pre market to read off the results of phase 1 so the stock will rip 30% at the open so he can do an equity offering that afternoon
Vaccine experts say Moderna didn’t produce data critical to assessing Covid-19 vaccine
Heavy hearts soared Monday with news that Moderna’s Covid-19 vaccine candidate — the frontrunner in the American market — seemed to be generating an immune response in Phase 1 trial subjects. The company’s stock valuation also surged, hitting $29 billion, an astonishing feat for a company that currently sells zero products.
But was there good reason for so much enthusiasm? Several vaccine experts asked by STAT concluded that, based on the information made available by the Cambridge, Mass.-based company, there’s really no way to know how impressive — or not — the vaccine may be.
While Moderna blitzed the media, it revealed very little information — and most of what it did disclose were words, not data. That’s important: If you ask scientists to read a journal article, they will scour data tables, not corporate statements. With science, numbers speak much louder than words.
Even the figures the company did release don’t mean much on their own, because critical information — effectively the key to interpreting them — was withheld.
(… more in link, this was the first snippet)


investmentwatchblog--2020-05-20--Record leverage! Small caps have never been so indebted relative to EBITDA. Russell 2000 stocks now

Record leverage! Small caps have never been so indebted relative to EBITDA. Russell 2000 stocks now trade at a historic 15x EV to 2020 EBITDA estimates!

Small caps have never been so indebted relative to EBITDA .
Russell 2000 stocks now trade at a historic 15x @ @ @ @ @ !
Stunning level of optimism priced in the markets these days .
pic.twitter.com/gsDjqcdRXz

Record leverage.
Small caps have never been so indebted relative to EBITDA.
More importantly:
Russell 2000 stocks now trade at a historic 15x EV to 2020 EBITDA estimates!
Stunning level of optimism priced in the markets these days. pic.twitter.com/gsDjqcdRXz
— Otavio (Tavi) Costa (@TaviCosta) May 19, 2020


investmentwatchblog--2020-05-20--TRUMP: Pelosi Has Mental Problems

TRUMP: Pelosi Has Mental Problems

Trump says Pelosi has ‘ mental problems ’ after ‘ morbidly obese ’ comments Donald Trump refused to directly respond @ @ @ @ @ s criticism over his decision to take an unproven malaria drug to prevent coronavirus because @ @ @ @ @ , ” but minutes later he accused her of having “ mental problems.
” “ @ @ @ @ @ to her , ” the president told reporters on Capitol Hill .
“ I think @ @ @ @ @ of time.
” Later in his comments to reporters , Mr Trump said : “ @ @ @ @ @ .
She ’ s got a lot of problems , a lot of mental problems @ @

Trump says Pelosi has ‘mental problems’ after ‘morbidly obese’ comments
Donald Trump refused to directly respond to Speaker Nancy Pelosi’s criticism over his decision to take an unproven malaria drug to prevent coronavirus because he is “morbidly obese,” but minutes later he accused her of having “mental problems.”
“I don’t respond to her,” the president told reporters on Capitol Hill. “I think she’s a waste of time.”
We are primarily funded by readers. Please subscribe and donate to support us!
Later in his comments to reporters, Mr Trump said: “Pelosi is a sick woman. She’s got a lot of problems, a lot of mental problems.”
Reporter asks about Speaker Pelosi's "morbidly obese" comment. President Trump: "I don't respond to her. I think she's a waste of time…Pelosi is a sick woman. She's got a lot of problems a lot of mental problems." Full video here: t.co/TL9lWFT9ov pic.twitter.com/B0C74uH9w7 — CSPAN (@cspan) May 19, 2020
h/t CrsCrpr


investmentwatchblog--2020-05-20--Is The Oil Collapse Over Already?

Is The Oil Collapse Over Already?

It has just been an amazing week for crude oil !
We haven ’ t seen upward movement in WTI like we ’ ve seen this week in…forever , on a percentage basis .
Buoyed by a dramatic shift in sentiment following an avalanche of good news generally , over a very short time span oil has rocketed higher .
Key among this data was a crude storage report turning out to not be as bad as originally feared and on the decline .
In the most recent weeks ’ edition of the EIA-WPSR , a slight build was forecast @ @ @ @ @ @ @ of 0.7 mm bbls .
The market loves data like this , particularly in the face of several months of increasing bearish data up to this point .
Gasoline demand going up is another well-received indicator of the market being ready to turn positive .
We are driving again and using gasoline in private cars as opposed to the distillate used in big trucks used for logistics .
Figures from the most recent STEO show a sharp rebound in these critical fuels .
When you fold in the fact that airlines and travel @ @ @ @ @ @ @ , and hotels are rolling out plans for deep cleaning , in furtherance of resuming service…the market simply did a happy dance on Monday the 18th , rising nearly a thousand points .
The market was also cheered by signs that the economic re-openings seem to be going manageably versus the worst fears of a sharp spike in new cases of the virus .
This was capped off by Monday ’ s news of a very promising vaccine for Covid .
In this article we will review some of the most recent relevant @ @ @ @ @ @ @ some calculations about the direction for oil and derivatives over the next few months .
I ’ ll give you a clue , supply and demand are about to be in sharp imbalance .
Shortages of oil and refined products are on the horizon .
Prices will be going sharply higher and soon .
The report from the shale patch Given all of the above , I think we ’ ve seen the bottom and have revised my forecasts accordingly for the rig count and frac spreads .
I think this week we @ @ @ @ @ @ @ the first time since January .
Nothing to write home about , but a few new rigs will be finding contracts .
It should be noted , that signs of a return to shale drilling will help to keep a cap on prices over the short run .
Longer term , as noted above , we think they are going much higher and will justify that belief later in this article .
I may be too bearish on the frac spreads holding them flat through the month .
Regardless it will be a @ @ @ @ @ @ @ seen , given the inventory overhang .
With this data and the figures from today ’ s release of the Drilling Productivity Report , we can start drilling down on just where the production fall off from shale will end up .
Tenet # 1- we are never going to produce 9-mm BOPD again from shale .
The capacity to do that simply no longer exists .
Tenet # 2- Capital will slowly start creeping back into shale as prices improve .
We aren ’ t suggesting a sharp rebound beyond $ 40 @ @ @ @ @ @ @ keep a lid on the pace of the recovery .
Tenet # 3- As of now we expect a 50 % decline in shale production by year ’ s end .
Tenet # 4-Oil companies will start revaluing reserves higher in Q-3 will bring a boost to NAV ’ s for the first time in several quarters .
I will refer back to these tenets in the “ Your takeaway ” section of this article .
Well we have some hard data and some fairly tepid speculation from the EIA in this month @ @ @ @ @ @ @ for you just now .
It is important to understand this report is not the final word , and just extrapolates trends seen by the government dweebs who compile it .
The EIA-914 is much more definitive , but lags several months .
EIA For more accurate analysis we need to normalize this report with the EIA-914 due at month ’ s end .
Production levitated from DUC activity to early March and has been dropping like a stone commensurate with declines in drilling and fracking activity .
In a prior OilPrice article @ @ @ @ @ @ @ drilling is now well below the replacement rate for new production .
What does that mean ?
Let ’ s do some cipherin ’ .
Using the new well rig-weighted average of 745 BOPD from each rig we can then infer a decline from lack of drilling activity .
From Mar of 2020 where we were producing 9175000 BOPD we have lost 322 rigs .
( 322 X 745 = 239 K BOPD of new production lost ) .
Legacy decline from March equals ( 9175000 X .6 = -3,670 mm annualized or @ @ @ @ @ @ @ ) Totals from declines in activity .
If you add those two together 603 +239 you can account for 842 K BOPD of lost production .
That seems like it would track fairly within a margin of error with the ~.9-mm or so the EIA is forecasting down for May .
When you add it to shut-in figures , the estimates of which run from 300-500K BOPD , means U.S. production is bracing for a precipitous decline , over just the month of May .
In summary shale ’ s decline will only @ @ @ @ @ @ @ as new ( old ) data comes in .
Eventually the declines will attenuate as drilling and fracking picks back up .
We stand by our earlier forecast of a 2020 exit for U.S. shale production of about 4.5-5.5 mm BOPD .
What does all of this mean on a global scale ?
Global demand is running at about 86 mm BOPD currently and is forecast in the May-11th edition of the linked STEO , to rise rapidly through the rest of this to about 99 mm BOPD .
With seven months left @ @ @ @ @ @ @ demand to be in the ~95 mm BOPD range .
What ’ s happened with supply ?
You can see above as a result of the cutbacks from OPEC+ we are down about 10 mm BOPD from the highs of 2019 .
Actual figures could be several million BOPD higher when you factor in cuts from producers like Norway , Canada , Brazil and a few others .
With the cuts we have forecast and those officially announced the world could see year end production of 6-8 mm BOPD below demand forecasts .
@ @ @ @ @ @ @ often drives sharp spikes in the oil price .
Witness the 15 % spike of late December , 2019 when it appeared that hostilities between the U.S. and Iran could bubble over into armed conflict .
This quickly dissipated as tensions cooled and other concerns began to drive the oil market .
Over recent years , supply and demand have tracked each other fairly closely .
In short there is no direct analogue for the type of shortage that could be on the horizon .
Simply put , we are in uncharted waters @ @ @ @ @ @ @ case for a sharp rise in the price of oil by years end .
There are no guarantees this will happen , but with the data we have seen , there is nothing in sight to deter this eventuality .
This could be good news for long suffering oil equity investors .
Oil related equities continue to be sharply under-valued as downgrades of Net Asset Values have continued through this quarter .
We think those downgrades are about over and oil companies will soon be able to increase their book valuations .
This @ @ @ @ @ @ @ for the majors like Chevron , ( NYSE : CVX ) and BP , NYSE : BP ) that have aggressively taken goodwill and asset write downs over the past couple of quarters .
Smart investors should review their portfolios for places to add shares at these depressed prices .
Odds are they won ’ t stay at these levels for long .

By David Messler
It has just been an amazing week for crude oil! We haven’t seen upward movement in WTI like we’ve seen this week in…forever, on a percentage basis. Buoyed by a dramatic shift in sentiment following an avalanche of good news generally, over a very short time span oil has rocketed higher.
Source
Key among this data was a crude storage report turning out to not be as bad as originally feared and on the decline. In the most recent weeks’ edition of the EIA-WPSR, a slight build was forecast, that turned into an actual decline of 0.7 mm bbls. The market loves data like this, particularly in the face of several months of increasing bearish data up to this point.
Gasoline demand going up is another well-received indicator of the market being ready to turn positive. We are driving again and using gasoline in private cars as opposed to the distillate used in big trucks used for logistics. Figures from the most recent STEO show a sharp rebound in these critical fuels.
When you fold in the fact that airlines and travel companies making plans to accommodate social distancing, and hotels are rolling out plans for deep cleaning, in furtherance of resuming service…the market simply did a happy dance on Monday the 18th, rising nearly a thousand points.
The market was also cheered by signs that the economic re-openings seem to be going manageably versus the worst fears of a sharp spike in new cases of the virus. This was capped off by Monday’s news of a very promising vaccine for Covid.
Related: Russian Oil Majors Want Bailout From Moscow
In this article we will review some of the most recent relevant data from the shale patch and make some calculations about the direction for oil and derivatives over the next few months. I’ll give you a clue, supply and demand are about to be in sharp imbalance. Shortages of oil and refined products are on the horizon. Prices will be going sharply higher and soon.
The report from the shale patch
Given all of the above, I think we’ve seen the bottom and have revised my forecasts accordingly for the rig count and frac spreads. I think this week we will see an uptick in drilling for the first time since January. Nothing to write home about, but a few new rigs will be finding contracts. It should be noted, that signs of a return to shale drilling will help to keep a cap on prices over the short run. Longer term, as noted above, we think they are going much higher and will justify that belief later in this article.
I may be too bearish on the frac spreads holding them flat through the month. Regardless it will be a little while before any real recovery is seen, given the inventory overhang.
With this data and the figures from today’s release of the Drilling Productivity Report, we can start drilling down on just where the production fall off from shale will end up.
Tenet #1- we are never going to produce 9-mm BOPD again from shale. The capacity to do that simply no longer exists.
We are primarily funded by readers. Please subscribe and donate to support us!
Tenet #2- Capital will slowly start creeping back into shale as prices improve. We aren’t suggesting a sharp rebound beyond $40 for a few months and that will keep a lid on the pace of the recovery.
Tenet #3- As of now we expect a 50% decline in shale production by year’s end.
Tenet #4-Oil companies will start revaluing reserves higher in Q-3 will bring a boost to NAV’s for the first time in several quarters.
I will refer back to these tenets in the “Your takeaway” section of this article.
Drilling Productivity Report analysis
Well we have some hard data and some fairly tepid speculation from the EIA in this month’s report, curated and analyzed for you just now. It is important to understand this report is not the final word, and just extrapolates trends seen by the government dweebs who compile it. The EIA-914 is much more definitive, but lags several months.
EIA For more accurate analysis we need to normalize this report with the EIA-914 due at month’s end. Production levitated from DUC activity to early March and has been dropping like a stone commensurate with declines in drilling and fracking activity.
In a prior OilPrice article, I’ve previously stated that drilling is now well below the replacement rate for new production. What does that mean? Let’s do some cipherin’.
Related: Oil Industry Faces Looming Threat Of Involuntary Outages
Using the new well rig-weighted average of 745 BOPD from each rig we can then infer a decline from lack of drilling activity. From Mar of 2020 where we were producing 9175000 BOPD we have lost 322 rigs. (322 X 745 = 239 K BOPD of new production lost). Legacy decline from March equals (9175000 X .6 = -3,670 mm annualized or /365 X 60 = 603 K BOPD) Totals from declines in activity. If you add those two together 603 +239 you can account for 842 K BOPD of lost production. That seems like it would track fairly within a margin of error with the ~.9-mm or so the EIA is forecasting down for May. When you add it to shut-in figures, the estimates of which run from 300-500K BOPD, means U.S. production is bracing for a precipitous decline, over just the month of May.
In summary shale’s decline will only accelerate for the next couple of months as new (old) data comes in. Eventually the declines will attenuate as drilling and fracking picks back up.
We stand by our earlier forecast of a 2020 exit for U.S. shale production of about 4.5-5.5 mm BOPD.
What does all of this mean on a global scale?
Global demand is running at about 86 mm BOPD currently and is forecast in the May-11th edition of the linked STEO, to rise rapidly through the rest of this to about 99 mm BOPD. With seven months left in the year we can average daily demand to be in the ~95 mm BOPD range.
What’s happened with supply? You can see above as a result of the cutbacks from OPEC+ we are down about 10 mm BOPD from the highs of 2019. Actual figures could be several million BOPD higher when you factor in cuts from producers like Norway, Canada, Brazil and a few others.
With the cuts we have forecast and those officially announced the world could see year end production of 6-8 mm BOPD below demand forecasts. Fear of shortages or disruptions to supply often drives sharp spikes in the oil price. Witness the 15% spike of late December, 2019 when it appeared that hostilities between the U.S. and Iran could bubble over into armed conflict. This quickly dissipated as tensions cooled and other concerns began to drive the oil market.
Over recent years, supply and demand have tracked each other fairly closely. In short there is no direct analogue for the type of shortage that could be on the horizon. Simply put, we are in uncharted waters.
Your takeaway
We have put forth a reasonable case for a sharp rise in the price of oil by years end. There are no guarantees this will happen, but with the data we have seen, there is nothing in sight to deter this eventuality. This could be good news for long suffering oil equity investors.
Oil related equities continue to be sharply under-valued as downgrades of Net Asset Values have continued through this quarter. We think those downgrades are about over and oil companies will soon be able to increase their book valuations. This will drive stocks prices higher, particularly for the majors like Chevron, (NYSE:CVX) and BP, NYSE:BP) that have aggressively taken goodwill and asset write downs over the past couple of quarters.
Smart investors should review their portfolios for places to add shares at these depressed prices. Odds are they won’t stay at these levels for long.
By David Messler for Oilprice.com


investmentwatchblog--2020-05-20--Bix Weir: Fed Gives Foreign Banks $446B…What About US?!

The Federal Reserve has grown their foreign bank swap lines from $ 0 to $ 446.5 BILLION in just 2 @ @ @ @ @ a strong “ V Shaped ” recovery ?
!
I wish I had that kind @ @ @ @ @ Weir has 30 years ’ experience in the financial industry with various fortune 500 companies @ @ @ @ @ of the “ Road to Roota Theory ” and his commentary is published at www.RoadtoRoota.com @ @ @ @ @ efforts over the last 15 years to exposing the long term manipulation of the gold @ @ @ @ @ has worked closely with the Gold Anti-Trust Action Committee helping to pull the curtain away @ @ @ @ @ Bankers that has taken control of our free market system .

Road To Roota, Released on 5/19/20
The Federal Reserve has grown their foreign bank swap lines from $0 to $446.5 BILLION in just 2 months….who said there would be a strong “V Shaped” recovery?! I wish I had that kind of printing press!
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Bix Weir has 30 years’ experience in the financial industry with various fortune 500 companies. He is the creator of the “Road to Roota Theory” and his commentary is published at www.RoadtoRoota.com. Bix has dedicated his efforts over the last 15 years to exposing the long term manipulation of the gold and silver markets. He has worked closely with the Gold Anti-Trust Action Committee helping to pull the curtain away from the Cabal of International Bankers that has taken control of our free market system.


investmentwatchblog--2020-05-20--White House Adviser Reveals Why the Dems Spending Bill Does NOT Sit Well With Republicans

Cassandra Fairbanks from The Gateway Pundit reports , The White House will not be approving a CV stimulus package that @ @ @ @ @ , no matter how hard the Democrats want to .
Speaking to ABC ’ s @ @ @ @ @ adviser Peter Navarro said that House Speaker Nancy Pelosi “ lost ” him with her @ @ @ @ @ to illegal aliens and provide protection for sanctuary cities in her party ’ s stimulus @ @

Cassandra Fairbanks from The Gateway Pundit reports, The White House will not be approving a CV stimulus package that gives checks to illegal aliens, no matter how hard the Democrats want to. Speaking to ABC’s This Week, White House adviser Peter Navarro said that House Speaker Nancy Pelosi “lost” him with her plan to give cash assistance to illegal aliens and provide protection for sanctuary cities in her party’s stimulus package.
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investmentwatchblog--2020-05-20--MSNBC: Americans Are Too “Obsessed” With Freedom

Got that right .

Got that right.
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investmentwatchblog--2020-05-20--George Soros Views The COVID-19 Plannedemic As A ‘Revolutionary Moment’ Where ‘Everything Is Up For

George Soros Views The COVID-19 Plannedemic As A ‘Revolutionary Moment’ Where ‘Everything Is Up For Grabs’ Says Radical Change Needed

Earlier this month , infamous left-wing billionaire George Soros discussed how the coronavirus will shape the world in an interview with Project Syndicate ’ s Gregor Peter Schmitz .
George Soros is giddy and excited these days , why ?
Because he sees the COVID-19 Plannedemic doing amazing things to destroy the economy , to destroy capitalism , and the weaken the United States to the breaking point so his army of low-information Liberal minions can swoop in and remake it .
You will always hear Liberals saying things like ‘ transforming America ’ , ‘ changing America ’ , @ @ @ @ @ @ @ about America ’ s greatness because they don ’ t believe it is .
Soros has been quiet in 2020 , but his bank accounts have not , he continues to provide over 1 billion dollars per year to support radical and anarchist Leftist groups and causes .
Black Lives Matter ?
That ’ s Soros .
ANTIFA ?
Yep , Soros .
All those races riots from a few years back ?
Yep , that ’ s Soros too .
George Soros even funded Antichrist-in-training Emmanuel Macron when he ran for president @ @ @ @ @ @ @ him to provide all the millions necessary for the Democrats to have their ‘ mail-in ballot ’ election in November , and even if people go to the polls , they are voting with a Soros-financed machine .
These are happy , happy days for Globalist Schwartz György , not since he sided with the Nazis as a teenager to rob his fellow Jewish neighbors and help send them to concentration camps has he been this happy .
Watch the video below , and listen as George Soros tells how that time in @ @ @ @ @ @ @ moments .
Until , that is , the COVID-19 Plannedemic .
George Soros Describes COVID-19 Pandemic As ‘ Revolutionary Moment ’ In Which ‘ Everything Is Up For Grabs ’ FROM ACTIVIST MOMMY : In the May 11th interview , Soros referred to the coronavirus ordeal as “ the crisis of my lifetime ” and gave his radical views for change and progress in the wake of the pandemic .
“ Even before the pandemic hit , I realized that we were in a revolutionary moment where what would be impossible or even @ @ @ @ @ @ @ only possible but probably absolutely necessary , ” he said during the interview , adding , “ And then came COVID-19 , which has totally disrupted people ’ s lives and required very different behavior .
It is an unprecedented event that probably has never occurred in this combination .
And it really endangers the survival of our civilization.
” Soros also discussed the “ threats ” now facing the European Union .
Soros is a well-known supporter of the globalist organization .
He asserted that “ Europe is facing several existential dangers @ @ @ @ @ @ @ concerned about the survival of the EU because it is an incomplete union.
” According to the Hungarian-born billionaire , the European Union was “ in the process of being created , ” but that process “ was never completed.
” Soros contended that the EU is “ exceptionally vulnerable – more vulnerable than the US not just because it is an incomplete union but also because it is based on the rule of law.
” During the interview , the progressive philanthropist also discussed a recent conflict between Germany and the EU @ @ @ @ @ @ @ s highest court on May 5 that one of the EU ’ s Court of Justice decisions regarding policies of the European Central Bank ( ECB ) was not legally binding .
This resulted in the European Court of Justice asserting that it alone had jurisdiction over the ECB .
George Soros , a globalist , sided with the EU during the interview .
“ When Germany joined the EU , it committed itself to abide by European law , ” he argued .
He expressed fears that this ruling “ poses a @ @ @ @ @ @ @ as an institution based on the rule of law ” as it could lead to other countries like Poland or Hungary to try to become more independent of the EU since “ the German court can question the decisions of the European Court of Justice.
” Soros asked , “ Can Hungary and Poland decide whether they follow European law or their own courts – whose legitimacy the EU has questioned ?
That question goes to the very heart of the EU , which is built on the rule of law .
Poland @ @ @ @ @ @ @ asserted the supremacy of its government-controlled courts over European law .
In Hungary , Viktor Orbán has already used the COVID-19 emergency and a captured parliament to appoint himself dictator , ” Soros claimed .
Soros claims that Orbán has positioned himself as a dictator but a new poll shows that the majority of Hungarians ( 54 percent ) approve of the Orbán administration ’ s measures and would vote for him in the coming election scheduled for this year .
Orbán isn ’ t the only world leader Soros labeled as a @ @ @ @ @ @ @ talked about President Donald Trump , accusing him of wanting “ to be a dictator ” but going on to say that “ he can not be one because there is a constitution in the United States that people still respect.
” George Soros remained vague in discussing the “ things ” President Trump allegedly wants to do but said the constitution “ will prevent him from doing certain things ” but that it isn ’ t stopping Trump from trying “ because he is literally fighting for his life.
” It ’ @ @ @ @ @ @ @ labeled Trump as an aspiring dictator simply because POTUS presents opposition for the progressive , globalist agenda that Soros heavily finances and actively advocates for .
He has $ 5.1 million alone invested in a super PAC that is dedicated to funding groups working against the re-election of President Trump .
George Soros also notoriously finances left-wing causes throughout the United States and around the world to the tune of $ 1 billion each year including abortion , euthanasia , population control , transgenderism , and same-sex “ marriage.
” If there ever @ @ @ @ @ @ @ would most definitely be it .
READ MORE

by Geoffrey Grider
Earlier this month, infamous left-wing billionaire George Soros discussed how the coronavirus will shape the world in an interview with Project Syndicate’s Gregor Peter Schmitz.
George Soros is giddy and excited these days, why? Because he sees the COVID-19 Plannedemic doing amazing things to destroy the economy, to destroy capitalism, and the weaken the United States to the breaking point so his army of low-information Liberal minions can swoop in and remake it. You will always hear Liberals saying things like ‘transforming America’, ‘changing America’, but you will never hear them talking about America’s greatness because they don’t believe it is.
Soros has been quiet in 2020, but his bank accounts have not, he continues to provide over 1 billion dollars per year to support radical and anarchist Leftist groups and causes. Black Lives Matter? That’s Soros. ANTIFA? Yep, Soros. All those races riots from a few years back? Yep, that’s Soros too. George Soros even funded Antichrist-in-training Emmanuel Macron when he ran for president in 2017. You can look for him to provide all the millions necessary for the Democrats to have their ‘mail-in ballot’ election in November, and even if people go to the polls, they are voting with a Soros-financed machine.
These are happy, happy days for Globalist Schwartz György, not since he sided with the Nazis as a teenager to rob his fellow Jewish neighbors and help send them to concentration camps has he been this happy. Watch the video below, and listen as George Soros tells how that time in his life were some of his happiest moments. Until, that is, the COVID-19 Plannedemic.
George Soros Describes COVID-19 Pandemic As ‘Revolutionary Moment’ In Which ‘Everything Is Up For Grabs’
FROM ACTIVIST MOMMY: In the May 11th interview, Soros referred to the coronavirus ordeal as “the crisis of my lifetime” and gave his radical views for change and progress in the wake of the pandemic.
“Even before the pandemic hit, I realized that we were in a revolutionary moment where what would be impossible or even inconceivable in normal times had become not only possible but probably absolutely necessary,” he said during the interview, adding, “And then came COVID-19, which has totally disrupted people’s lives and required very different behavior. It is an unprecedented event that probably has never occurred in this combination. And it really endangers the survival of our civilization.”
HE WENT ON TO SAY, “WE WILL NOT GO BACK TO WHERE WE WERE WHEN THE PANDEMIC STARTED. THAT IS PRETTY CERTAIN. BUT THAT IS THE ONLY THING THAT IS CERTAIN. EVERYTHING ELSE IS UP FOR GRABS. I DO NOT THINK ANYBODY KNOWS HOW CAPITALISM WILL EVOLVE.”
Soros also discussed the “threats” now facing the European Union. Soros is a well-known supporter of the globalist organization. He asserted that “Europe is facing several existential dangers” and that he is “particularly concerned about the survival of the EU because it is an incomplete union.” According to the Hungarian-born billionaire, the European Union was “in the process of being created,” but that process “was never completed.”
Soros contended that the EU is “exceptionally vulnerable – more vulnerable than the US not just because it is an incomplete union but also because it is based on the rule of law.”
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During the interview, the progressive philanthropist also discussed a recent conflict between Germany and the EU that involved a ruling from Germany’s highest court on May 5 that one of the EU’s Court of Justice decisions regarding policies of the European Central Bank (ECB) was not legally binding. This resulted in the European Court of Justice asserting that it alone had jurisdiction over the ECB.
George Soros, a globalist, sided with the EU during the interview. “When Germany joined the EU, it committed itself to abide by European law,” he argued.
He expressed fears that this ruling “poses a threat that could destroy the European Union as an institution based on the rule of law” as it could lead to other countries like Poland or Hungary to try to become more independent of the EU since “the German court can question the decisions of the European Court of Justice.”
Soros asked, “Can Hungary and Poland decide whether they follow European law or their own courts – whose legitimacy the EU has questioned? That question goes to the very heart of the EU, which is built on the rule of law. Poland has immediately risen to the occasion and asserted the supremacy of its government-controlled courts over European law. In Hungary, Viktor Orbán has already used the COVID-19 emergency and a captured parliament to appoint himself dictator,” Soros claimed.
Soros claims that Orbán has positioned himself as a dictator but a new poll shows that the majority of Hungarians (54 percent) approve of the Orbán administration’s measures and would vote for him in the coming election scheduled for this year. Orbán isn’t the only world leader Soros labeled as a dictator. In the interview he briefly talked about President Donald Trump, accusing him of wanting “to be a dictator” but going on to say that “he cannot be one because there is a constitution in the United States that people still respect.”
George Soros remained vague in discussing the “things” President Trump allegedly wants to do but said the constitution “will prevent him from doing certain things” but that it isn’t stopping Trump from trying “because he is literally fighting for his life.”
HE WENT ON TO ADD, “I WILL ALSO SAY THAT I HAVE PUT MY FAITH IN TRUMP TO DESTROY HIMSELF, AND HE HAS EXCEEDED MY WILDEST EXPECTATIONS.”
It’s safe to assume that Soros has labeled Trump as an aspiring dictator simply because POTUS presents opposition for the progressive, globalist agenda that Soros heavily finances and actively advocates for. He has $5.1 million alone invested in a super PAC that is dedicated to funding groups working against the re-election of President Trump.
George Soros also notoriously finances left-wing causes throughout the United States and around the world to the tune of $1 billion each year including abortion, euthanasia, population control, transgenderism, and same-sex “marriage.” If there ever was an arch-nemesis for conservatives, Soros would most definitely be it. READ MORE


investmentwatchblog--2020-05-20--The COVID Lockdown Ends When ‘We The People’ Withdraw Our Consent…

The power of government comes from the people ; or as we say in the U.S. “ from the consent of the governed.
” When the people lead , the politicians are forced to follow .
Without implied consent the municipal or state government has no power .
None .
As a result , the lock-downs end when the majority of We The People no longer give our consent .
How do We The People retract our consent ?
We simply refuse to comply .
When the majority of people simply refuse to comply with unilateral dictates , and laugh @ @ @ @ @ @ @ to enforce them , the government no longer has power .
If one person refuses to comply government can , and likely will , intervene .
However , if tens of thousands rebuke these unconstitutional decrees , there isn ’ t a damn thing govt can do to stop it… and they know it .
This is why some state governors are quickly starting to retract or modify their dictates .
Local , regional and state officials know they can control the behavior of an individual .
If one barber shop opens , @ @ @ @ @ @ @ , those officials also know they can not control the behavior of the majority .
If every barber shop and beauty salon in town opens… there is absolutely nothing the government can do about it .
If one restaurant and/or bar opens , the state can target the owner .
But if every bar and restaurant in town opens ; and if everyone ignores and dispatches the silly dictates of the local , regional or state officials ; there isn ’ t a damned thing they can do about it .
The power @ @ @ @ @ @ @ authority comes from the expressed consent of the people .
As soon as the majority of people deny that consent , those officials and state authoritarians lose all of their power .
Yes , it really is that simple .
Those who construct the systems of control need to weaponize fear .
Fear of arrest ; fear of losing a business ; fear of losing liberty or financial security .
Local , regional and state officials rely on fear .
As soon as the people are no longer fearful , the control ends @ @ @ @ @ @ @ COVID-19 mitigation are not laws .
There was no debate ; no input from representative government ; and no option for the public to weigh-in on the decisions .
All unilateral rules are arbitrary , and despite many proclamations to the contrary , they rely upon voluntary compliance .
As soon as citizens no longer voluntarily comply , the term of the rules has expired .
If masks are so effective then why didn ’ t government give masks to prisoners , instead of releasing the inmates ?
Additionally , if you choose @ @ @ @ @ @ @ a choice .
So choose wisely .
Remember that ; and think about it .

The power of government comes from the people; or as we say in the U.S. “from the consent of the governed.” When the people lead, the politicians are forced to follow.
Without implied consent the municipal or state government has no power. None.
As a result, the lock-downs end when the majority of We The People no longer give our consent.
How do We The People retract our consent? We simply refuse to comply.
When the majority of people simply refuse to comply with unilateral dictates, and laugh in the faces of those who attempt to enforce them, the government no longer has power.
If one person refuses to comply government can, and likely will, intervene. However, if tens of thousands rebuke these unconstitutional decrees, there isn’t a damn thing govt can do to stop it… and they know it. This is why some state governors are quickly starting to retract or modify their dictates.
A non-compliant snowball becomes an unstoppable freedom avalanche.
Local, regional and state officials know they can control the behavior of an individual. If one barber shop opens, the owner becomes a target. However, those officials also know they cannot control the behavior of the majority. If every barber shop and beauty salon in town opens… there is absolutely nothing the government can do about it.
If one restaurant and/or bar opens, the state can target the owner. But if every bar and restaurant in town opens; and if everyone ignores and dispatches the silly dictates of the local, regional or state officials; there isn’t a damned thing they can do about it.
The power of the local, regional or state authority comes from the expressed consent of the people. As soon as the majority of people deny that consent, those officials and state authoritarians lose all of their power.
We are primarily funded by readers. Please subscribe and donate to support us!
Yes, it really is that simple.
Those who construct the systems of control need to weaponize fear. Fear of arrest; fear of losing a business; fear of losing liberty or financial security. Local, regional and state officials rely on fear. As soon as the people are no longer fearful, the control ends.
The overwhelming majority of dictates around COVID-19 mitigation are not laws. There was no debate; no input from representative government; and no option for the public to weigh-in on the decisions.
All unilateral rules are arbitrary, and despite many proclamations to the contrary, they rely upon voluntary compliance. As soon as citizens no longer voluntarily comply, the term of the rules has expired. If masks are so effective then why didn’t government give masks to prisoners, instead of releasing the inmates?
Liberty is inherent.
The removal of liberty requires consent.
Additionally, if you choose not to decide you still have made a choice. So choose wisely.
Remember that; and think about it.
Sit in a circle today; sit in a cattle-car tomorrow.


investmentwatchblog--2020-05-20--Enough! (Stop Saying “We’re All In This Together)

For the love of God , stop telling me that “ we ’ re all in this together.
“ I @ @ @ @ @ you but I ’ m in a virtual prison .
My civil liberties and my @ @ @ @ @ by an invisible dystopian biotyranny of jackbooted thugs pushing a flu d ’ état fantasy @

For the love of God, stop telling me that “we’re all in this together.“ I don’t know about you but I’m in a virtual prison. My civil liberties and my essential rights have been seized by an invisible dystopian biotyranny of jackbooted thugs pushing a flu d’état fantasy.
We are primarily funded by readers. Please subscribe and donate to support us!


Fight The Fed

“ In my opinion , you have to be wildly optimistic to believe that corporate profits as a percent of GDP can , for any sustained period , hold much above 6 % .
One thing keeping the percentage down will be competition , which is alive and well .
In addition , there ’ s a public-policy point : If corporate investors , in aggregate , are going to eat an ever-growing portion of the American economic pie , some other group will have to settle for a smaller portion .
That would justifiably raise political problems–and in my @ @ @ @ @ @ @ just isn ’ t going to happen.
” –Warren Buffett , November 1999 Twenty years after this was written , the wild optimists have been proven right and Buffett ’ s faith in reversion to the mean proven wrong .
Corporate profits as a percent of GDP soared above 6 % in the first quarter of 2002 and , outside of a brief dip during the fourth quarter of 2008 , have remained above that lofty mark for nearly two decades now .
Competition , it turned out , was not , in @ @ @ @ @ @ @ Bridgewater wrote last year .
Antitrust policy has been loosened to the point at which many firms have been able to buy up their rivals and create oligopolies if not duopolies or monopolies across a number of industries .
Globalization ( and demographics ) certainly played a part , as well , but there is one other cause that I think fails to garner the attention it deserves .
Monetary policy over the past couple of decades has also shifted toward aggressively and directly supporting capital .
It ’ s true that the @ @ @ @ @ @ @ tools to support labor directly .
While part of its dual mandate is to promote full employment , it can only do this through the capital markets by lowering interest rates and buying up securities .
In this way , extreme monetary policy is the ultimate in “ trickle down economics , ” the idea that when the wealthy benefit inordinately their spending and investment will eventually benefit everyone else .
The results , however , speak for themselves .
Explicitly targeting “ wealth effects ” over the past two decades ( first @ @ @ @ @ @ @ then the everything bubble under Ben Bernanke and Janet Yellen ) , the Fed has pushed household net worth as a percent of GDP to record heights .
Capital has benefitted to a degree never seen before in our nation .
Meanwhile , labor share of income has fallen to its lowest levels in history and wealth inequality is very possibly even greater than it was a century ago .
Where Buffett got his prediction right is in the political problems he foresaw .
Both political parties are moving to the extremes , @ @ @ @ @ @ @ .
This is an inevitable outcome of the “ major replacing of the pie ” we have seen over the past 20 years .
And it will eventually lead to another reslicing that is more equitable .
The backlash against wealth and income inequality and the fallout of the pandemic are the driving forces behind the trends already moving towards a renewed antitrust framework and a rethink of globalization and the offshoring of critical production .
However , while these are important areas to focus on , we should not forget to include @ @ @ @ @ @ @ and its own policies that have done at least as much to dramatically skew the economy and the financial markets .
Extreme monetary policy has not only artificially inflated capital but has also greatly exacerbated the boom bust cycle , leading to two once-in-a-generation economic crises in just over a decade .
Inflating asset prices and encouraging increasing indebtedness beyond what the natural economic cycle can support is not a sustainable way of trying to manage the economy .
Even former Fed Chair Janet Yellen lamented after the financial crisis , “ Somehow @ @ @ @ @ @ @ that is using its resources , operating at full employment , but doing so in a way that isn ’ t reliant on bubbles.
” The economy has only become far more dependent upon bubbles in the capital markets since then .
So for those looking for ways to level the playing field that has been tilted greatly in favor of capital over labor , I would humbly suggest they include the Federal Reserve and its role in exacerbating the underlying problems .
Without a holistic approach that includes a rethink of extreme @ @ @ @ @ @ @ only prove to be half measures .

by jessefelder
“In my opinion, you have to be wildly optimistic to believe that corporate profits as a percent of GDP can, for any sustained period, hold much above 6%. One thing keeping the percentage down will be competition, which is alive and well. In addition, there’s a public-policy point: If corporate investors, in aggregate, are going to eat an ever-growing portion of the American economic pie, some other group will have to settle for a smaller portion. That would justifiably raise political problems–and in my view a major reslicing of the pie just isn’t going to happen.” –Warren Buffett, November 1999
Twenty years after this was written, the wild optimists have been proven right and Buffett’s faith in reversion to the mean proven wrong. Corporate profits as a percent of GDP soared above 6% in the first quarter of 2002 and, outside of a brief dip during the fourth quarter of 2008, have remained above that lofty mark for nearly two decades now.
Competition, it turned out, was not, in fact, alive and well, as Bridgewater wrote last year. Antitrust policy has been loosened to the point at which many firms have been able to buy up their rivals and create oligopolies if not duopolies or monopolies across a number of industries. Globalization (and demographics) certainly played a part, as well, but there is one other cause that I think fails to garner the attention it deserves.
Monetary policy over the past couple of decades has also shifted toward aggressively and directly supporting capital. It’s true that the Fed doesn’t really have the tools to support labor directly. While part of its dual mandate is to promote full employment, it can only do this through the capital markets by lowering interest rates and buying up securities. In this way, extreme monetary policy is the ultimate in “trickle down economics,” the idea that when the wealthy benefit inordinately their spending and investment will eventually benefit everyone else. The results, however, speak for themselves.
Explicitly targeting “wealth effects” over the past two decades (first the housing bubble under Alan Greenspan and then the everything bubble under Ben Bernanke and Janet Yellen), the Fed has pushed household net worth as a percent of GDP to record heights. Capital has benefitted to a degree never seen before in our nation. Meanwhile, labor share of income has fallen to its lowest levels in history and wealth inequality is very possibly even greater than it was a century ago.
We are primarily funded by readers. Please subscribe and donate to support us!
Where Buffett got his prediction right is in the political problems he foresaw. Both political parties are moving to the extremes, conservatives toward nationalism and liberals towards socialism. This is an inevitable outcome of the “major replacing of the pie” we have seen over the past 20 years. And it will eventually lead to another reslicing that is more equitable.
The backlash against wealth and income inequality and the fallout of the pandemic are the driving forces behind the trends already moving towards a renewed antitrust framework and a rethink of globalization and the offshoring of critical production. However, while these are important areas to focus on, we should not forget to include the most powerful institution on the planet and its own policies that have done at least as much to dramatically skew the economy and the financial markets.
Extreme monetary policy has not only artificially inflated capital but has also greatly exacerbated the boom bust cycle, leading to two once-in-a-generation economic crises in just over a decade. Inflating asset prices and encouraging increasing indebtedness beyond what the natural economic cycle can support is not a sustainable way of trying to manage the economy. Even former Fed Chair Janet Yellen lamented after the financial crisis, “Somehow we need to go to an economy that is using its resources, operating at full employment, but doing so in a way that isn’t reliant on bubbles.” The economy has only become far more dependent upon bubbles in the capital markets since then.
So for those looking for ways to level the playing field that has been tilted greatly in favor of capital over labor, I would humbly suggest they include the Federal Reserve and its role in exacerbating the underlying problems. Without a holistic approach that includes a rethink of extreme monetary policy, any proposed solutions may only prove to be half measures.