Category Archives: Economy & Markets

Debt Ceiling: How “Extraordinary Measures” Work

As most of my readers know, the government will hit the current debt limit extension tomorrow (December 8) – unless Congress votes to expand the limit today or tomorrow, which is looking increasingly unlikely. Republican members of Congress are laser-focused on passing tax reform, and they know the government won’t actually shut down on December…

Goldman Sachs Predicts 4% Global Growth in 2018

My main theme in the second half of this year has been that the US economic recovery is gaining momentum. We have seen back-to-back quarters of better than 3% GDP growth in the 2Q and 3Q. Just yesterday, the Commerce Department reported that 3Q GDP rose at an annual rate of 3.3%, up from 3.0%…

GOP’s Hidden 45.6% Tax Bracket For Wealthy is For Real

I don’t want to be a broken record on the subject of the new GOP tax reform proposal, especially after devoting my entire E-Letter to it on Tuesday. Yet there is one troubling aspect of the new tax plan that has come to light this week as analysts dug deeper into the details. That revelation,…

Americans in Best Holiday Shopping Mood in Years

According to the latest survey from Gallup, Americans’ 2017 Christmas shopping plans suggest that retailers could see the best holiday sales in years. Gallup’s survey in October found that the average American respondent plans to spend $906 on Christmas and holiday gifts this year, up sharply from $785 this time last year. That represents one…

30-Year Anniversary of “Black Monday” – Dow Down 23%

Today is the 30th anniversary of “Black Monday,” October 19, 1987, when the Dow Jones Industrial Average plunged 508.3 points, or almost 23%, in that one day. It was and is the worst single day in US stock market history. At today’s lofty levels, a decline of 23% in a single day would mean the…

Category Archives: Economy & Markets

Debt Ceiling: How “Extraordinary Measures” Work

As most of my readers know, the government will hit the current debt limit extension tomorrow (December 8) – unless Congress votes to expand the limit today or tomorrow, which is looking increasingly unlikely. Republican members of Congress are laser-focused on passing tax reform, and they know the government won’t actually shut down on December…

Goldman Sachs Predicts 4% Global Growth in 2018

My main theme in the second half of this year has been that the US economic recovery is gaining momentum. We have seen back-to-back quarters of better than 3% GDP growth in the 2Q and 3Q. Just yesterday, the Commerce Department reported that 3Q GDP rose at an annual rate of 3.3%, up from 3.0%…

GOP’s Hidden 45.6% Tax Bracket For Wealthy is For Real

I don’t want to be a broken record on the subject of the new GOP tax reform proposal, especially after devoting my entire E-Letter to it on Tuesday. Yet there is one troubling aspect of the new tax plan that has come to light this week as analysts dug deeper into the details. That revelation,…

Americans in Best Holiday Shopping Mood in Years

According to the latest survey from Gallup, Americans’ 2017 Christmas shopping plans suggest that retailers could see the best holiday sales in years. Gallup’s survey in October found that the average American respondent plans to spend $906 on Christmas and holiday gifts this year, up sharply from $785 this time last year. That represents one…

30-Year Anniversary of “Black Monday” – Dow Down 23%

Today is the 30th anniversary of “Black Monday,” October 19, 1987, when the Dow Jones Industrial Average plunged 508.3 points, or almost 23%, in that one day. It was and is the worst single day in US stock market history. At today’s lofty levels, a decline of 23% in a single day would mean the…