27 June 2019

1) Ikea, the pioneer of inexpensive self-assembled home furniture is adapting its manufacturing and marketing methods to inexpensive housing. Sections for homes will be built in factories, then quickly assemble into ready to move-in houses. Bringing the factory manufacturing techniques to homes would significantly reduce the cost as compared to the hand built housing techniques now used. This could open the way to home ownership by the younger generations.

2) Despite the continual upsurge of the markets, Americans aren’t convinced the economy is doing well. A survey shows 39% of U.S. consumers believe the economy is ‘not so good’ or even poor. Lower income Americans are not doing as well as macro indicators would suggest, despite getting more raises recently. These gains don’t offset years of high unemployment and stagnant wages.

3) A huge drop in U.S. crude oil inventories and the outlook for demand has pushed oil futures prices up to near $60 dollars a barrel. Domestic stockpiles fell by 12.8 million barrels last week, the biggest drop in supplies since September 2016. In the past week, oil futures have jumped 10%, with the traditional expected increase in oil demand with summer driving. Gasoline reserves are further aggravated by the fire at Philadelphia Energy Solutions, the East Coast’s largest refinery.

4) Stock market closings for- 26 JUN 19:

Dow                    26,536.82    down    11.40
Nasdaq                  7,909.97          up    25.25
S&P 500                 2,913.78     down      3.60

10 Year Yield:    up   at    2.05%

Oil:    down   at    $59.21

7 May 2019

1) The jobs report Friday was better than expected, up from last months 190,000, with 263,000 jobs reported and unemployment down again to 3.6%. This underscores the economy’s vigor with unemployment at half the century low. This may eliminate the markets fears of a recession.

2) This Friday, just after midnight, China will have an additional 25% tariffs imposed. However, there are fears that domestic Chinese politics may cause the ploy to backfire, from the Chinese people seeing their government backing down to America. Therefore, the Chinese government may not be able to respond as Washington is expecting.

3) Fears of the consequences of more tariffs on China caused a slight downturn of today’s market closings.

4) 6 MAY 19 Stock market closings:

Dow             26,438.48    down    66.47
Nasdaq          8,123.29    down    40.71
S&P 500         2,932.47    down    13.17

10 Year Yield:    down   at    2.50%

Oil:    down   at    $62.04

7 March 2019

1) The economic balance in US trade deficient soared last year to $621 billion dollars, the highest level in ten years. Exports from the US fell 1.9% while imports rose 2.1%. The deficient with China was $419 billion dollars. The strong US economy is considered a factor in the increase of the imbalance.

2) Italy’s experiment with Universal Basic Income is having dismal results, with Italy’s poverty and unemployment rising. The intent of the program was to alleviate poverty and address it’s high unemployment, for Italy has the highest unemployment rate in Europe. Finland tried the same scheme, but scraped it’s program after two years. The European Union is taking exception to Italy’s spending habits.

3) The General Motor’s Lordstown plant is shutting down with the loss of 5,400 jobs. This shows that despite the booming job market in America, the economy is still leaving people behind. Major problem is the workers are older and lack the computer and technical knowledge to retrain for other job fields.

4) 6 MAR 19 Stock market closings:

Dow               25,673.46       down       133.17
Nasdaq            7,505.92       down         70.44
S&P 500           2,771.45       down         18.20

10 Year Yield:     down   at   2.69%

Oil:     down   at    $56.15

6 March 2019

1) The Green New Deal is bringing out proposals for financing the single payer health care proposals. There is a big problem with providing enough health care people such as doctors and nurses to care for the increase numbers of people. Suggestions for finance is an overhaul of present payroll tax combining social security, unemployment and medicare into one flat tax for all of a person’s income. However, apparently there has been no modeling of this strategy to determine its viability.

2) President Trump proposes to drop the preferential trade treatment for India. Presently, there are $5.6 billion dollars worth of Indian goods imported each year into America duty free, while India is imposing high tariffs on US goods imported into India.

3)  As Brexit nears, British people and companies are stockpiling goods at an increasing rate, fearful of shortages if a ‘no-deal’ exit occurs. Both business and households are fearful of shortages especially food items first, then things like toilet paper and medicine.

4) 5 MAR 19 Stock market closings:

Dow           25,806.63     down     13.02
Nasdaq        7,576.36     down       1.21
S&P 500       2,789.65     down       3.16

10 Year Yield:    unchanged   at    2.72%

Oil:    down   at    $56.28

7 January 2019

1) The chairman for the Federal Reserve suggested that the interest rate may not be raised this year, which stimulated the markets.

2) The December unemployment rose to 3.9% with 312,000 jobs added, which may serve to raise interest rates. This news also stimulated the markets.

3) Apple faces partial ban of their phones in Germany, the German courts ordering bans on some models of Apple phones because of patent infringement disputes for energy saving chips.

4) 4 JAN 19 Stock market closings:

Dow           23,433.16 up 746.94
Nasdaq      6,738.86     up   275.35
S&P 500   2,531.94     up          84.05

10 Year Yield: up at 2.66%

Oil: up at $48.31

Monthly Job Numbers: Once a Month, American Millennials and Generation Z; Are Treated to News of the Number of New Jobs Created:

 

How Good is This News?

James Lyman BSAE, BSEE, MSSM

Economic & Finance Report

Each month, like clock work, the government announces the number of new jobs created for that month, an indicator if the economy is surging up or falling behind. When the numbers are over about 200,000 the party in power crows about how well they are handling the economy, but when below . . . the opposition nags about how the 0in powers0 are destroying America. But just how good is good? Is the addition of more than 200,000 jobs really that good for those seeking employment? Is it really good news for the youth as they enter the job market? Curiosity aroused, I decided to do a little investigating.

Ideally, you want the number of new jobs created to at least equal the number of new workers entering the job market. Now it should be an easy manner to find the number of new workers entering America’s labor force each year. But it wasn’t! You’d think this is a statistic commonly wanted and therefore readily available. Instead, my search got everything else but that! So, being an engineer, I started looking for a method to estimate the numbers by using enrollments in grade schools. Discounting the number of home schooled children, the number of workers that eventually enter the job market would be the number passing through the ‘black box’ of K-12 at any time. The eighth grade seemed like the best bet, since after that students start dropping out of school before getting their highschool diploma, so by knowing the number of students passing through the eighth grade, I would know how many new workers would eventually be entering the work force. Granted, there would be a delayed of four or more years for those going to college, but the number coming out of the college pipeline would be constant so the net numbers would be about the same as the number of eighth graders.

Off to the internet to find out how many eighth graders there are in America, another number you would think would be easily found. Well, it wasn’t, but after some perseverance, I found two sources that gave 3.7 million eight graders in our schools. So that means, to break even, we need to be creating about 3.7 million new jobs each year. Easy enough, right? I gleefully take my calculator out and enter the 3.7 million, then with a few keystrokes, divide by 12 to get the number of new jobs needed per month, which was just a shade over 308,000. But wait a minute! These political fools in Washington are jumping up and down with glee whenever the monthly new job count is over 200,000 . . . a very long way from the 308,000 jobs needed just to keep our noses above water, by a factor of 50%! So what’s the dance-for-joy all about?

Granted, you also have us 0baby-boomers0 leaving the job market by retiring or simply by dropping dead, and here too it was just as difficult getting any definite numbers of how many people are retiring and leaving the job market. One number that I found repeatedly was each day, there are 10,000 people reaching the age of 65. That’s about 300,000 people per month, which should just balance out the number of new workers coming into the work force . . . EXCEPT!! More and more of those reaching retirement age are not retiring! They find they cannot afford to retire because they don’t have the monetary resources saved. The average . . . AVERAGE American worker needs three quarters of a million dollars ($750,000) in retirement savings to maintain their standard of living, so workers are delaying retirement for several more years- or not retiring at all. Those who do retire, find after a few years, they cannot afford to retire and therefore must return to the work force. In actually, retirement is a thing of the past. Something my parents and grandparents did, but not my generation, and certainly not any of the Millennials.

But even when they do retire and stay retire, their job isn’t necessary vacant for a new worker to step into. Often as not, when someone retires, their company tries to replace them with technology, either directly or by using it to combine job task with other workers, and with the explosive exponential growth of technology, American business have been very successful at doing that. And the ‘drop dead’ factor? Well, according to the Census Bureau, there are 8.6 births with 4.6 deaths per minute, while also we have 2 immigrants arriving every minute. This means there’s a total of 6 new potential workers arriving every minute of the day, week in and year out. Do the math and that’s 3,153,600 workers per year or 262,800 per month, more than the 200,000 new jobs the government people are so pleased to crow about, prancing about in front of television cameras saying just how good everything is going. One source spelled it out- on average, 205,300 jobs are needed just to keep even with population growth, nothing to say about those millions now needing a job, and especially about the 20 to 25% recent unemployed and underemployed college graduates, nor the millions of workers who have been unemployed for more than six months, who the government just discards saying they just don’t want a job. In reality, the real unemployment rate is between two and three times the government’s quoted rate.

The bottom line . . . some might be tempted to call the official job numbers fake. Some might even go so far as to say they’re down right fraudulent! While politicians, bankers and economists look at the job creation numbers and unemployment rate saying how great things are, they are careful not to see the millions of ‘mad as hell’ Americans, which for them there is still little to no opportunity of either getting a job or a pay increase. Just trying to get some straight forward numbers and statistics has showed me how those governing us are more interested in the ‘smoke and mirrors’ of creating images instead of really working the problems.

And just where does that leave the Millennials and Z-Generation? Right back at square one!

A dismal future fading more and more into oblivion.

U.S. LABOR: PLETHORA OF JOBS BUT VERY LITTLE RAISES TO SHOW!!!!!!!!!!!!!!!

By: Economic & Finance Report

The U.S. unemployment rate has fallen to 3.9%, the lowest it has been in over a decade. The economy is doing tremendously well and analyst/economists are stating wage inflation are on the horizon, while the actual wage inflation is rising slightly.

American job employers are sitting on a lot of jobs though, not able to find qualified workers as shown in the past. The Job & Labor Report released last Tuesday, May 8, 2018; by the Bureau of Labor Statistics (US Dept of Labor), indicated that 6.6 million jobs were added in the last day of March 2018. Jobs increased from the beginning of March 2018, where it was around 4.6 million jobs to the end of March, which became 6.6 million jobs.

Economists have indicated with the inflation rising, the Federal Reserve may be more determined to raise interest rates because the job market and the economy is healthy. With an accelerating economy and the labor markets doing good, one can expect the The Fed to be monitoring the situations accordingly. -SB

Bureau of Statistics: U.S. Department of Labor (https://www.bls.gov/news.release/jolts.nr0.htm)

 

EFR PODCAST EP. 20: 2018 ECONOMIC & FINANCE REPORT CARD (SUPER BOWL LII)

Happy New Year 2018 & Super Bowl Folks!!!!!!!
 

Happy Super Bowl LII Eagles vs. Patriots; Businessman Bassey aka Sammy BE aka Bizman Bass aka Mr, Finance The Deal!!!!!!!!!! (Financier Sammy B) along with co-host James Lymon & on the boards, Magic Jon Don Sterling; discussed everything under the economic, financial and business sun, for the beginning of 2018.

The trio discussed topics ranging from 2018 Davos Business/Economic Summit, to new USA Federal Reserve Chair (Jerome Powell) and his impact on monetary policy, as well discussing more on the drop of cyber currency in recent markets.

This episode is definitely a dooozzzzzzzy.,……  Superbowl LII edition,

Stick around and enjoy this new episode for the start of 2018, episode 20….. Let’s Goooooooooo………….

Remember to #StayBlessed & #GodBless

Website Platforms To Check Out:

1) www.instagram.com/EcoFireTV

2)www.twitter.com/EcoFireTV

3) www.Economic&FinanceReport.com (Economic & Finance Blog Site)

4)@Economic-FinanceReport (Podcast/Online Show)

5)www.youtube.com/channel/UCWZo5bug…Nlb2VRfDCQ/videos (EFR.Tv Youtube Ch)

6)www.SammyBuysHomes.com (Real Estate Investment)

7) www.TraderSoul.com (Financial Trading Website)

Standard & Poor Downgrades Brazil’s Debt Credit To “Junk Status”

Brazil credit rating

By: Economic & Finance Report

Standard and Poor downgraded Brazil’s debt credit to “Junk”. The Bovespa stock index fell 0.33% Thursday, by end of the day. Brazil must cut spending and expenditures to increase stability to its economy.

President Dilma Rousseff discussed alternatives and options with her economic team, on finding certain solutions to the downgrade by Standard & Poor’s… One of the main options discussed was cutting spending drastically. Economically, Brazil is already over ten billion dollars in debt. Inflation is north of 10% and unemployment has risen drastically, over the course of a few years time.-SB

THE SUPER TAXING ON MILLIONAIRES HAS BEEN DROPPED BY FRANCE (NEW YEAR DAY EDITION 2015)

 

French tax By: Economic & Finance Report

The super taxation by French government to tax wealthy millionaires has been dissolved or let go recently. France has dropped the tax indefinitely. The tax was levied  on having millionaires who were living in France (citizens/nationals) had to pay substantially high tax rates, something of upward of 70%-75% on the current tax rates.

The tax was already rejected by the French Supreme Court and it was having major hurdling blocks already, since France is already going through its own economic crisis. The tax had taken a more drastic effect on an already volatile economy.

The increased tax rate already being substantiated by a minority population in France; it still was being rebuked by the majority of the population. Many protests had occured by citizens and people alike, in which they were displeased with the tax. The indicator was that the  tax  was hurting an already digress economy and not only this, the tax was heavil hurting more businesses not to hire people, and affecting an already growing unemployment figure within the country.

-SB