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STANLEY DRUCKENMILLER: It’s time to give real capitalism a chance

“For years now a mix of financial repression and central bank intervention has made long-term interest rates largely determined by government fiat” writes Simon Black for businessinsider.com. Now, the irony of this is over the last 700 years inflation has averaged barely over 1% and interest rates have averaged just under 6%.But there’s a link to the full speech at the bottom: Can we try capitalism?. But, after he was elected, I was at least hopeful that it would represent an inflection point in the trend away from capitalism. Source: businessinsider.com…

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News Regulators 

Trump Takes a Rare Presidential Swipe at the Fed

“If the Fed raises rates too quickly, it risks slowing growth at a time when wages have stagnated for most American workers, after accounting for inflation” reports nytimes.com. Historically, presidents have preferred lower rates, because faster economic growth typically helps incumbents win re-election.But if it raises rates too slowly, some Fed officials fear the economy could “overheat” and ignite a rapid spiral of price increases that could eventually prompt a recession.But as the economy finally gains steam after years of sluggish growth in the wake of the Great Recession, the…

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The US and Canada share North America’s most-vital trade corridor

“This region is integral in both U.S. and Canadian histories, and it’s still the most vital trade corridor in North America today” writes Visual Capitalist for businessinsider.com. Freighter trade in the Great Lakes originally gained prominence in the 1840s, when copper and iron ore were discovered in the areas surrounding the lakes.REUTERS/Jonathan Ernst Long before highways and railroads covered the vast expanses of North America, crucial trade was conducted through the towns and outposts located along the shores of the Great Lakes and the St.What are the economic benefits stemming…

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Markets News 

Biggest threat to markets and economy is a Democrat win in November, Trump advisor Hassett says

“I could think of a lot of bad things that could hurt markets,” Hassett told CNBC’s Joe Kernan during a “Squawk Box” interview” writes Jeff Cox for cnbc.com. The main thing that could derail markets and the economy would be a Democrat takeover of Congress, White House economic advisor Kevin Hassett said Thursday. Source: cnbc.com Share This:

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Kudlow says economic growth could top 4% for ‘a quarter or two,’ more tax cuts could be coming

“As part of the administration’s plan to grow the economy, Kudlow said there would be additional rounds of tax cuts ahead” writes Jeff Cox for cnbc.com. The administration has used a mix of tax cuts, spending increases and regulatory rollbacks in an effort to goose the economy out of what Kudlow characterized as a “growth recession” after the financial crisis.Asked whether the administration is considering more tax legislation following the cuts passed late last year, Kudlow said there could be a “2.0 and 3.0 and a 4.0.”. Larry Kudlow, President…

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Markets News 

Dow edges higher, but energy sector is a drag on the broader market

“U.S. stocks traded mixed, with the Dow Jones Industrial Average inching up, but the broader market edged lower as a slump in the energy sector weighed” writes Anora M for marketwatch.com. Wall Street moves has been influenced by economic reports and earnings reports.Gains in the financials and industrials sectors, up 0.9% and 0.6%, respectively, were overshadowed by sharp losses in energy shares, down more than 1.2%.UAL, +5.92%  were up 5.8% after the airline reported better-than-expected second-quarter earnings late Tuesday and lifted its profit projections.Abbott Laboratories ABT, +3.07%  shares rose 2.8%…

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America may not have the tools to counter the next financial crisis, warn Bernanke, Geithner and Paulson

“A decade after the 2008 recession, the policymakers who countered it on its front lines are worried that the U.S. may not be adequately armed for the next economic crisis” writes Natasha Turak for cnbc.com. Post-crisis reforms also strengthened the banking system and made it easier for big banks to be shut down rather than needing government bailouts.The former economic officials said that the changes so far made sense, like exempting some smaller banks from the law’s strictest requirements.Current efforts are underway by Congressional Republicans and President Donald Trump to…

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Markets News 

Gold settles at a 1-year low for a third straight session

“Todd who runs Todd Market Forecast said he prefers cash over gold and has been bearish on the metal since June 15” writes Markets Commodities Reporter for marketwatch.com. Rising real interest rates impact the opportunity costs of holding gold because the metal provides no yield.A popular fund tracking gold, the SPDR Gold Shares GLD, -1.01% edged down by 1% in Tuesday dealings.Gold settled at a one-year low Tuesday for a third straight session, pressured by strength in the dollar as testimony from U.S. Federal Reserve Chairman Jerome Powell backed a…

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