Moon Kil Woong is currently a VP at a SME. Previously he was a tech stock consultant, VP of Research at ING, and sell side Director at Crédit Agricole Indosuez. Moon Kil Woong has a Masters in Public Administration from SJSU.
He contributes to both TalkMarkets and Seeking Alpha. You ...
more Moon Kil Woong is currently a VP at a SME. Previously he was a tech stock consultant, VP of Research at ING, and sell side Director at Crédit Agricole Indosuez. Moon Kil Woong has a Masters in Public Administration from SJSU.
He contributes to both TalkMarkets and Seeking Alpha. You can see his articles on TalkMarkets
here, and on Seeking Alpha
here.
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Latest Comments
McDonald's Downgraded As U.S. Restaurant Trends Seen Slowing
When American's slow down going out to eat that means they are really hurting. Why many ask when inflation is down and the jobs market is good? Because inflation has been eating the middle class alive and most of it is housing costs which are purposefully hidden from inflation reporting. As for the jobs market, with the amount of Americans working plumbing to new lows, no, I'm not impressed with our jobs recovery. Of course the argument is they don't want to work.
Regardless of if they do or not, the result to our economy is the same. It's not good.
Central Bankers Believe That They Can Provide Free Lunches
They can and they have, to banks and bankers. Sadly as we all know, this does nothing because the bankers who make the money already have most everything they need and watch the zeroes pile up in their accounts. Zirp policy, at most served to widen the spreads between what the bank pays (close to nothing) and the consumer. Now bankers want to preserve the spread if rates rise or widen them. LOL, anyone who thinks this will help the economy needs to go back to school.
Needless to say, that's not going to happen thus rates are not being raised. Sorry to break the news to you, the Federal Reserve these days is a model of corruption. They only care about banks, bankers, and themselves. Use this as your guiding light and you need not be shocked about what they do. Or better stated, what they continue to not do.
3 Solar Stocks To Buy As Tesla Looks To Take Over SolarCity
Please, this makes no sense besides helping Musk by making Tesla shareholders poorer and Tesla stock more risky than it already was before the proposed merger. His interest and shareholders interests are clearly at odds. Musk is probably saying, "A fool and his money are soon parted." Although he usually probably says this about taxpayers who fund all his ventures through investments, tax credits, etc. he means Tesla shareholders this time. Good luck doing anything about it. It's a wonder he doesn't make Tesla buy his home for 2x the price while he's at it.
Needless to say, other solar stocks aren't in play, especially at the valuation he wants to do this deal at.
Tesla Motors Inc. Drops, SolarCity Corp. Soars On Bid News
LOL maybe Musk can then get Space X to buy out Tesla and say it makes sense for them to do so to make electric cars for when you book your one way trip to Mars. Needless to say, shareholders of Tesla have a right to be upset and now it makes sense why Musk said Tesla was over valued. If only we knew. Tesla should not be his own piggy bank. He has yet to justify how shareholders benefit.
Needless to say, there is probably more downside to come.
Talk Of Yen Intervention Makes Sense… But First Brexit
Japan and the yen bet is a funny case of backwards logic. While people worry about Japan reaching a debt point where n no one in their right mind would lend them more, this thought has entered into the notion of those playing its currency with reverse effect. Everyone knows its unsustainable and cutting or even stopping issuing more will be devastating to the economy. However, knowing it's unsustainable, means that they should reach a point they will have to cut back making the Yen soar and the economy tank.
Given their already horrific debt and negative rates which is looking like it shrinks the economy rather than grows it, this is a fair assumption to make and is disastrous for Japan who has engaged in absurd economic games for decades rather than allowing a free market to fix its ailing economy. The simple fact is Japan is reaching its debt load where there will no longer be more money, but potentially even less money in your lifetime. How Japan can borrow given this will make debtors broke is a good question. The best argument to make is, don't follow Japan into socialistic runaway debt sprees that never end.
To add to that, don't go ultra low rates to negative rates. It kills growth and distorts the economy. It does nothing to fix things and only makes things worse in the long run. Sadly the US is already finding this fact out all too slowly. Our central bank is single handedly running America into the ground.
The Vanity Of Central Bankers And The Common Sense Rule
The problem with negative rates is that it is unconstitutional. It is a tax by a non-government agency without public approval. The other issue is that it will be deeply unpopular and will force government to do something to restrain the increasingly liberal funny money central bank. Last, the effects will be just as devastating as you will see in other countries that embark on it. After all, it is a complete rejection of capitalism and a endorsement of debtism run by central banks and the government. It takes power from the people, abolishes self sufficiency in favor of the state, and heralds in all the problems of socialism state run economies.
Brexit: Breaking Up Is Hard To Do
Isolationism is bad for the global economy yes. I, however, don't think this is the main driver for Brexit. I think it's a disillusionment of all Europe to deal with Greece, Italy, etc. and the rulemaking for trade which strangely has been designed to prevent trade rather than encourage it as of recently. That said, their exit won't make trade with Europe any easier because they can still demand the same ridiculous barriers to trade if they are in the EU or not.
There are bad things first off with a Brexit, however, long term, it may not be as bad as many suggest for the them if they should move that way. There is something to be said about being economically independent, especially if you are considering being with a bunch of reckless socialist countries. Who I really feel sorry for is Germany.
ECB Running Out Of Bonds To Buy For QE
Sadly, QE can never be reversed due to political issues and the fact that it will affect growth adversely. In fact, ceasing QE even causes problems. The other issue is central banks love it because it gives them power and enables them to enrich those they do business with. It is a win, win for corruption and an illegitimate monetary system to replace capitalism with. The only losers is the public and who cares about them when there's money to be had for literally free.
7 Of Last 9 Recessions Started In Quarters With Positive GDP
Thanks this information is interesting. Is this data after the fact numbers or when they called it a recession. If I recall correctly the last downturn they determined the economy went down like 4 months before they declared it a recession. Due to their revisions people get a skewed look at their accuracy as well as recognizing the recession which is often identified way too late.
Will Millions Of Baby Boomers Beginning To "Cash Out" Adversely Affect The Stock Market?
Worse is if the Federal Reserve ever reverses QE. Remember when they said it would be easy and not to worry about it when they wanted to implement it? Nowadays they won't even talk about it and would desperately love to do another round of it. Their QE more than made up for the baby boomer cash out.
The baby boomer cash out isn't exactly like pulling money out of the economy. It just moves from one area to another and is not as disruptive. The only major issue is the increased health care needs which can help explain the hefty inflation in this sector. Sadly, although this sector gets increased spending, other market sectors decline in spending which I think has already been underway the last 5-10 years.
As for cashing out of the market, I don't think this will be an issue. With banks dominating trade on the market, stock buybacks by companies, and zirp rates stocks should do fine relatively. Also I don't see the elderly dumping their assets the second they retire. If anything I see them pinch pennies and try not to spend their assets. Of course, when they pass their assets go to someone else, and who knows what they do with them. In such a case, the flight may be in 20 years when they pass and the inheritors go on uncontrolled spending sprees.