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February 2019

The Amazon (Tesla) Controversy 

Nevada had to give Tesla tax concessions in order to induce them to put their mega-factory west of Sparks off of I-80.  Concessions are a fact of life when it comes to attracting mega-businesses to a community.  I do remember that then Governor Sandoval was criticized by some for “giving away too much” in the form of tax credits to Tesla.    I also remember asking a question in this column that went something like this: …Read More

The Rocky Road to “Normal”

The terms “normal,” “normalize,” and “neutral” are common in today’s economic discussions.  But, does anybody really know what “normal” is?  When the Federal Reserve (Fed) says that it  wants to “normalize” interest rates, do they have a rate scheme in mind?  Does it mean that rates will be similar to what they were 10-20 years ago?  That’s what most people believe “normal” is.  The truth is “normal” is significantly lower.  The current …Read More

Markets Have Recovered, But Charts Look Like Niagara Falls

In January, the equities markets bounced from significantly oversold conditions at the end of December, on the hopes that a) the Fed stopped it tightening cycle in time, and b) the halt to the government shut-down occurred in time to avoid negative Q1 GDP growth. As I have stated in prior blogs, “hope” is not a good investment strategy. But wait! The “hope” regarding the Fed doesn’t even make sense. …Read More