Economic News

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It’s good that the resident Trumpanzees got their, “durr, I thought Trump’s tariffs were supposed to hurt the economy, durr…” comments in last spring before they left this thread never to return.
 
nycfan said:
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🎁 —> https://www.wsj.com/finance/investi...7?st=vVMWJq&reflink=desktopwebshare_permalink
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“…
That expanding pain is worrying many on Wall Street, because software has come to assume an outsize presence in the corporate-debt market—the result of a wave of private-equity buyouts that stretched from the late 2010s through the early 2020s. A downturn in the sector has the potential to drag down other areas of the market, cooling what has been a humming credit engine.

Software currently makes up 13% of the Morningstar LSTA U.S. Leveraged Loan Index—which tracks speculative-grade loans that are originated by banks and broadly distributed to investors—more than double the share of the next largest sector. The sector makes up an even larger percentage of private-credit loans made by asset managers directly to companies, with estimates putting the share at around 20% to a third of those loans.

Since mid-January, the prices of loans issued by the likes of Cloudera, a data analytics company, and Qlik, the maker of business intelligence software, have sunk by around 10 cents on the dollar or more, according to S&P Global Market Intelligence. Overall, the average price of software company loans in the Morningstar LSTA index has dropped to 90.51 cents on the dollar, as of Wednesday, from 94.71 cents at the end of last year, according to PitchBook LCD.

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nycfan said:
“…
That expanding pain is worrying many on Wall Street, because software has come to assume an outsize presence in the corporate-debt market—the result of a wave of private-equity buyouts that stretched from the late 2010s through the early 2020s. A downturn in the sector has the potential to drag down other areas of the market, cooling what has been a humming credit engine.

Software currently makes up 13% of the Morningstar LSTA U.S. Leveraged Loan Index—which tracks speculative-grade loans that are originated by banks and broadly distributed to investors—more than double the share of the next largest sector. The sector makes up an even larger percentage of private-credit loans made by asset managers directly to companies, with estimates putting the share at around 20% to a third of those loans.

Since mid-January, the prices of loans issued by the likes of Cloudera, a data analytics company, and Qlik, the maker of business intelligence software, have sunk by around 10 cents on the dollar or more, according to S&P Global Market Intelligence. Overall, the average price of software company loans in the Morningstar LSTA index has dropped to 90.51 cents on the dollar, as of Wednesday, from 94.71 cents at the end of last year, according to PitchBook LCD.

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Uh oh.
 
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nycfan said:
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I remember when Obama told the coal miners something like “the economies of the future run on sustainable energies. We recognize what this means for your communities and have a plan to invest billions in retraining programs so your communities can continue to thrive in this future.”

Then the oil and coal companies showered republicans with propaganda money to convince a bunch of low information people that the black man wanted to kill their families and that contrary to evidence “clean coal” could not give you black lung.
 
nycfan said:
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Making 20 widgets with fewer persons creating skyrocketing productivity, profits, and GDP ?

So I guess that real person workers have been a drag on productivity, profits, and GDP. Fortunately, we have and will continue to replace these deadbeats in the workplace.

I dream of the day when real persons are no longer necessary to provide any services that meet the needs of our country. Not only will it skyrocket productivity and profits, but it will radically reduce our annoyance having to actually interact with a real person as we go about our day to day activities. . Yuk !
 
heelinhell said:
Making 20 widgets with fewer persons creating skyrocketing productivity, profits, and GDP ?

So I guess that real person workers have been a drag on productivity, profits, and GDP. Fortunately, we have and will continue to replace these deadbeats in the workplace.

I dream of the day when real persons are no longer necessary to provide any services that meet the needs of our country. Not only will it skyrocket productivity and profits, but it will radically reduce our annoyance having to actually interact with a real person as we go about our day to day activities. . Yuk !
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What comes next is the culling.
 
China has encouraged its banks to lessen their exposure to U.S. Treasuries. And speaking purely from a risk standpoint they might be justified. And everyone else might be too. Long term interest rates are based on demand for Treasuries which means there would be pressure on those rates to rise.

Trump seems to think he and the Fed have the power to cure the higher interest rate problem. Well gee, he has got to be the least free market in tune President we have ever had. And some people thought a Democrat would always hold that honor.
 
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