I have to think that De Blasio knew he was not a sure thing to succeed himself as Mayor.
By Marc. L. Flaster
Texas Insider Report: AUSTIN Texas The weather across the country these days is so depressing who has time to worry about the news. Even New York City Mayor De Blasio has thrown his wrench into the ring. Now the Democratic Presidential Primary really is a context of diminishing returns.
Rain rain and more rain. Even the sunny days are framed with rain.
Markets the past few days and likely most of this week remain flat in the face of Memorial Day Weekend... but thats next week. Yes the crowd has already started to thin out.
Looks like trade negotiations with China have reached an impasse. In addition there is a building body of opinion that there are more important things for the Trump White House to do with its time.
But there are now 24 (and counting) candidates searching for enough support to be considered a threat for the office. Few are known beyond their own immediate council.
Here in the Big Apple our Mayor has thrown his hat into the ring of hopefuls. I have to think that he knew he was not a sure thing to succeed himself as Mayor.
Economically the Fed may be sticking to its guns but the new cottage industry of The Social Media Maven Manager now to be referenced as 3M has taken a course that may force their hand.
Sellers of goods and products now feel threatened. Theyre reaching out to establish alternate channels for sales.
- What were seeing all across the economy now is what I call destructive innovation and its taking away the ability to predict our economys strength accurately" said Texas Insiders Economic Council Chair Marc Flaster.
This is different type of innovation. Its destructive innovation it digs at the very heart of commerce. The stock market has already tilted its dart board and economic reports last week were not necessarily encouraging. Retail sales down. Bonds however are not listening to the siren song of higher yields.
As long as the Fed holds out the curve will remain relatively flat. But bond markets have now doubled down on a rate cut by September.
However as we have seen the longer end of the rate curve continues to fall as the flight to safety from an unstable world continues. Maduro in Venezuela is rounding up the leaders of the failed coup attempt thus removing a threat to his power. Uncertainty in Iran Sri Lanka Turkey the list goes on and on.
If you do not own U.S. dollars in most countries around the world you have nothing.
The China Tariffs escalation has little direct impact on pricing at the consumer level but does have a big influence on perception and confidence in the markets.
Contracts with suppliers that have been in place for years maybe decades are at risk.
But dont think politics doesnt play a hand in all these economics impacts.
Joe Biden has obviously found a theme that plays well: Electability. He leads the list at the polls as the most electable and over time this could be the standard that thins out the ranks. None of the mega-horns have any backing with the public. Ideas and issue platforms are too far afield.
Joe B has the right idea. The Dems have to defeat Trump first and they need a standard bearer to do that. All these progressive leftist ideas are interesting but without an electable candidate they wont see the light of day.
Those who have a large enough mega-phone to capture media attention have such a narrow idea of what is good for General Bull Moose that they have quickly faded to the background. Some of their hair-brained schemes have been proposed at the local level but with no avail.
For instance the Governor of N.J. offered to raise taxes on the upper income earners and then redistribute this to the lesser. Thousands were to be collected from each of those who have too much but the redistribution amounted to only a $25 credit to those filers at the other end of the spectrum. The rest of the monies was to go into establishing more government programs or additional funding for programs already in place. These programs add to the government payroll and therefore the budget which then need to raise taxes again to fund the bureaucratic waste.
Connecticut offered to place a surtax on capital gains. Even the Governor saw that as a kiss of death to funding his campaign war chest.
Where is the old adage; waste not want not!!
2020 is not clearly not going to be your typical eye exam results. One by one those who wish to be mighty will fall. Joe Biden for the moment looks like the last man standing.
The docudrama plays out; But will the 3M Media Maven Manager economy self- destruct before it is all over. Stay tuned!!
P.S.: For the nervous; 42 of all 12-25 year-olds check Facebook all day long to see if they are not the object of harassment bigotry or bullying.
No wonder youngsters today lack self-confidence!!
Marc L. Flaster is chairman of the Texas Insider Economic Council.
