Markets News 

Why Investors Can’t Get Enough of Tajikistan’s Debt

“More than any other global investment bank, J. P. Morgan has a special power when it comes to emerging market bonds” writes Landon Thomas Jr for nytimes.com. Last year, developing nations issued a record $133 billion in debt, according to Bond Radar, a data gathering outfit.And it was not that long ago that Greece, even with its towering debt load, was an investor favorite.The I.M.F. warned last week that this rush to snap up the debt of financially fragile countries could end badly.Investors, especially exchange-traded funds, buy or sell bonds…

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Markets News 

One way to think about Trump’s bizarro idea linking equity and debt

“Still, combined with the proposal below to raise the capital gains rate, ending step-up basis raises more than $200 billion over 10 years” reports washingtonpost.com. Longer-term trends reveal a depressed share of national income going to paychecks (vs. profits) and sharp increases in capital income and wealth concentration.Equalize the rates on capital income: Or at least close some of the gap between earned/wage income (top rate: ~40 percent) and asset-derived income (~24 percent).Had I sold it before I died, I’d have paid capital gains taxes on the $90,000 of the property’s appreciation.We…

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News 

It would take a 50% hike in income tax to fund our current deficit

“But surely everybody knows by now that there is no lockbox with Social Security funds in it” writes John Mauldin for businessinsider.com. Aaah, the good old days… But the simple fact of the matter is that no Congress is going to fund Social Security and Medicare through tax hikes.Larry Kotlikoff wrote in an article on Forbes that we would need an immediate approximately 50% increase in taxes to fund our future deficits. Source: businessinsider.com Share This:

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Markets News Stocks 

Trump Muddles Economic Indicators

“Trump in Harrisburg, Oct. 11: And very proudly, just in the stock market alone, we have increased our economic worth by $5.2 trillion dollars” writes Robert Farley for factcheck.org. In a news interview and a speech in Pennsylvania, President Donald Trump misleadingly suggested that rising stock value could reduce the national debt.Short was asked whether a booming stock market would reduce the national debt, as the president suggested.Trump is right that the federal debt increased under Obama.The president’s budget also assumes deficit neutral tax reform, which the Trump administration and…

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Markets News 

China is binging on dollar-denominated debt

“In total, emerging market governments and companies have issued $US509 billion in dollar-denominated bonds so far this year, a new record” writes Wolf Richter for businessinsider.com.au. Investors around the globe are eager to hand China their US dollars, in exchange for a somewhat higher yield.Other emerging market governments and companies have jumped on the same dollar-bandwagon.China announced today that it would sell $US2 billion in government bonds denominated in US dollars. Source: businessinsider.com.au Share This:

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China’s richest man built fortune even as debt mountain climbed

“Named the richest man in China on Thursday with a net worth of $43 billion, property tycoon Xu Jiayin is likened by some media to Donald Trump, having built his fortune on a real estate business that has blossomed under a mountain of debt” writes unknown author for cnbc.com. Evergrande, China’s second-most indebted company, has now pledged to cut its net debt ratio to around 70 percent by June 2020 from 240 percent and has raised $3.8 billion in new funds and exchanged $2.8 billion of existing debt this year. Source:…

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Markets News Stocks 

An attempt to make sense of Trump’s comments on the stock market and the debt

“Of course, this is a gross overread of the stock market rally” writes Josh Barro for businessinsider.com.au. And yet, we picked up $US5.2 trillion just in the stock market. “Possibly picked up the whole thing in terms of the first nine months, in terms of value.In his interview with Sean Hannity on Wednesday, President Donald Trump went on an odd riff about the stock market and the national debt. “The country — we took it over and owed over $US20 trillion.Trump also overreads the 3.1% second-quarter GDP growth figure, about…

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Crypto News Regulators 

Government Officials in Sweden Settle a Debt With Bitcoin

“In Sweden, two Enforcement Authority officials settled a debt by using Bitcoin” writes Jp Buntinx for livebitcoinnews.com. Now that members of the local Enforcement Authority settled a debt with cryptocurrency, things will get a lot more interesting in the country.That is a good sign for the future of Bitcoin, although nothing has been officially confirmed at this point.This is a rather surprising turn of events, even though Sweden keeps an open mind toward cryptocurrency in general. Source: livebitcoinnews.com Share This:

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Markets News Stocks 

Trump’s Right, the Debt and Stock Market Are Confusing: Here’s an Explanation

“President Donald Trump seemed to indicate in an interview on Wednesday that stock market gains reduce the national debt” writes Emily Stewart for thestreet.com. But growth in the stock market has no direct relationship to a decline in the national debt.While what Trump is saying on the debt and the stock market, separately, is technically correct, tying them together doesn’t make sense.According to the U.S. debt clock calculator, the national debt is currently more than $20.3 trillion.And yet, we picked up $5.2 trillion just in the stock market. Source: thestreet.com Share…

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Markets News Stocks 

President Trump just claimed stock market gains actually offset national debt. They don’t

“President Donald Trump on Wednesday said that, “in a sense,” gains made by private financial markets reduce the national debt” writes Christina Wilkie for cnbc.com. “The country — we took it over and owed over $20 trillion,” Trump said in an interview on Fox News, referring to the total national debt, which has hovered near $20 trillion since early 2016.For evidence that the two metrics have little to no bearing on one another, look no further than the eight years of the Obama presidency: Between 2009 and 2017, the S&P…

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