I didn’t have time to get to my odds and ends before our flight left for Honolulu, so here goes:
- Plane Economics: Our flight from Melbourne to Sydney was packed full and seats were very tight. A fellow named Clint was seated next to me and immediately started to critique what I was reading, which was an article against Keynesian economic policies (he thought it was for). So for once, someone was next to me who actually even knew what Keynes was all about and I may have stimulating conversation. The problem: He was intoxicated beyond comprehension. Oh well…close, but no cigar.
- See the movie “Trumbo”…it is not only very, very well done but the story (which is true) is about turbulent times in the 1950’s and 60’s and the campaign to fight/eliminate communism in the US. It illustrates that a concern/fight can go way to far and actually violate the rights and lives of people who have done nothing wrong or illegal. Fear can be a powerful poison…we need to reasoned and balanced when confronted with it.
- If I own a house worth $400K with a loan of $200K and I “improve” it with 200K of further debt, the house is now valued at 600K with 400K of debt. Am I any better off? Some would point to the higher valuation. The factual answer is it’s neutral…my net worth in the house is still 200K. I would say I am worse off because I have doubled my debt, am leveraged higher and thus have more risk in a down market. In the last seven years under Obama, the US has printed and borrowed 7.5 trillion dollars. Are we better off?
- According to Ted Cruz, I am a “low information” voter since I do not support him. Is that the height of arrogance? What do you expect from a politician…he may be a outsider, but he is a politician through and through.
- Earnings for companies in the S&P 500 fell 3.4% from last year, according to research firm FactSet. It was the third straight quarter of declining earnings for the S&P 500. The last time earnings fell three straight quarters was during the financial crisis.
It was also the fourth consecutive quarter of declining sales. That also hasn’t happened since the financial crisis.
- Idea: Given that central banks around the world have borrowed, printed and even gone to negative interest rates (if you have not heard, that means YOU pay the bank for the privilege of holding YOUR money and seven countries currently have them) and none of it has worked…why not let deflation run it’s course and go from there?
- Linda and I are looking forward to visiting the UK and the Netherlands at the end of this week. We will spend some time Friday with Louella-Belle, our UK partners…great people who do a great job. Monday we meet with our new Italian distributor (in London) to plan our launch. Then onto the Netherlands for a whirlwind tour with Tracy and Piet of Gorge Nails doing IBX Certification classes, meeting Nail Professionals and Salon Owners. Going to be great…then home and no travel for a couple of months.
Until next time-