RichC | June 24, 2018
Since I drive a diesel BMW X5 35d as well as an old 1982 Mercedes 300D Turbodiesel, and use diesel fuel in our Kubota and John Deere lawn tractors (not to mention sailboat) … seeing pump prices 20 to 40 cents higher at the pump is starting to cut into my theory of saving money […]
RichC | April 17, 2018
Have you filed your income tax return yet? 2017 returns are due today! While catching up on some reading while out of town this week, Jim Glassman, Head Economist at JPMorgan Chase, had me pondering (and tweeting) about the length of sustained growth that might be possible after the recession. He, and many others, have […]
RichC | February 9, 2018
With the rapid drop in oil prices, and equal "10% correction" in the overall stock market, will improving wages offset by falling commodities (oil) cause the Federal Reserve rethink their concern that inflation is picking up? Current thoughts were that we could see three quarter point rate hikes in 2018 if the economy continues to […]
RichC | February 2, 2018
I played the “high risk, high reward” game on Friday while watching most if not all stocks collapsed over rising interest rate concerns. It looks more likely that the Federal Reserve may have to be more aggressive in raising rates in order to control inflationary pressures after the jobs report. Unemployment is low, the economy […]
RichC | January 28, 2018
Delivering commonsense “tough love” clarifications and explanations of financial issues has always been a Dave Ramsey strength. After the Trump administration finally moved their tax plan through congress, Dave offered a 10 minute explanation as to whether it was a good thing or a bad thing. If you are steeped in years of seeing things […]
RichC | December 18, 2017
While waiting for the predicted Tuesday vote on the GOP Tax Plan that has been anticipated ALL year, it is looking like it might actually get done in 2017. It has not been easy or as simple as many of us wanted “Tax Reform,” but the corporate tax cut will make the U.S. more competitive […]
RichC | December 16, 2017
With all the buzz around Bitcoin and bubbles, the really big financial crisis being somewhat overlooked is Student Loan Debt. The number of Americans struggling to pay back the money they borrowed for their education is mindboggling. The WSJ reported that Nearly 5 Million Americans are in Default on their Student Loans … and there […]
RichC | November 3, 2017
On Thursday, the long awaited Republican tax reform plan finally saw the light of day after most political and financial watchers haggled over the unknown details most of this year. President Trump has made tax reform and cuts as his centerpiece agenda as essential to growing the economy and stimulating job and wage growth for […]
RichC | October 13, 2017
The early 1980s were challenging as manufacturing headed overseas, inflation ate up the buying power of every dollar and the cost to borrow was at an all time high. In fact, Brenda and I were giddy to have acquired a 12% mortgage on our first house in 1982 because our friends were applying for new […]
RichC | June 14, 2017
Sort of a surprise to most Fed watchers today as the consensus was for the Federal Reserve to raise rates a 1/4 point in September, not June. Perhaps it won’t make much difference for the whole year, but Chair Janet Yellen obviously wants to stay ahead of the curve. The target inflation rate remain 2% […]
RichC | June 4, 2017
From a small business perspective, excessive debt is near the top for reasons entrepreneurs fail in business. In my experience there are bankers and leasers with terms in the lenders favor, but not in the borrower’s favor. Bankruptcies are harmful not only to the person and family going through the ordeal, but on the creditors […]
RichC | May 20, 2017
Every once in a while comes an “it’s a small world“ surprise and one wonders, “why didn’t I know this?” This past week, my sister-in-law sent me a link to an article from her husband Dan Glassman’s brother Jim. The link was to Jim’s Linkedin page and opined on the economy. I figured … we […]
RichC | May 1, 2017
The rate of U.S. inflation for March was slower than expected just one month after hitting a five-year peak. The number reflects lower gasoline and consumer goods prices, including automobiles. Thiis could ease pressure on the Federal Reserve to raise interest rates, even though central banks have telegraphed increases this year. The U.S. economy is […]
RichC | April 1, 2017
The “Trump Rally” as many have dubbed it, provided investors with solid quarterly gains as a brighter economic outlook offset the lackluster Washington DC agenda which has become bogged down in politics. Investors still believe job growth, better corporate financial returns and tax cuts will over shadow the Fed “applying the brakes” in the form of higher […]
RichC | January 26, 2017
My answer: Rarely does the pendulum find the middle. Neither the fiscal or social policy balancing coming from Washington DC makes much sense to me. There have to be moderates who see validity in each others positions? Rather than the black and white collisions between the liberal Democrats and the conservative Republicans’ points of view, […]
RichC | January 6, 2017
U.S. employment increased less than expected in December, but wages are rising, ever so slightly after a long stagnancy. Most economists are positive since they say we only need to create 56,000 jobs per month to keep up with current levels of new entrants in the job market. Others will point out that our job […]
RichC | December 23, 2016
We still have a week of trading before closing the books on 2016, but those last few DJIA psychological points to 20,000 have proven evasive. Thursday’s 23 point decline, after the steady climb since the election, has a few gurus thinking the Trump Rally may be ahead of itself? Some are looking at current corporate […]
RichC | October 18, 2016
Maybe it is just me being a little nervous, but there are a lot of potential triggers for panic. The craziest presidential election I’ve ever seen, a stock market that has risen longer than average between recessions (with tepid economic growth), unrest in the middle east (of course always on fire) and both the Chicago […]
RichC | October 16, 2016
I love simplicity … so when tossing around political footballs, I generally join the team that at least "attempts" to simplify government and taxes. I’m not naïve enough to believe it will ever happen or even work well, but after filing personal (for friends and family), organizations and business taxes for years, it would sure […]
RichC | October 7, 2016
What is the goal? More and better paying jobs, profits for companies and growing tax revenues to fund government services, entitlements and improved ability to pay down our nation’s debt. How do we accomplish this? There are two ways government helps to create jobs in the US. The current Democrats remain focused on #1, while […]
RichC | September 27, 2016
After watching David Stockman on Wall Street Week this past weekend, I was intrigued enough in his message of economic panic to pick up the Kindle version of his latest book. Although he is not new to the "Henny Penny" view that economically we can’t continue on the current path, hearing and reading his analysis […]
RichC | September 9, 2016
For those following the modifications and upgrades on our 2010 BMW X5 35d for most of 2016, below are the resulting fuel economy improvements, at least so far. This 5225 lb SUV (minus a few pounds) will never be a Volkswagen TDI fuel sipper, but I’ll take a 15% mpg improvement considering it also has […]
RichC | August 14, 2016
First let me qualify, this is the discounted United Dairy Farmers (UDF – Mobil) price for diesel … but I’m not complaining about $2.14 either (current Aug 2016 price). It isn’t like we need an excuse to buy milkshakes, but their summer promotion in discounts fuel is the little push I need to bring home […]
RichC | August 11, 2016
There are people who have the ability to communicate and can make "simple-sense" of the usually complicated economic issues facing our country. I’d like to believe that IF enough voters are willing to digest the three minutes of conversation below, that they would be less inclined to "dis" a business oriented pro-growth policy that is […]
RichC | March 23, 2016
Looking at the Finviz chart of the wild second half of 2015 slide for crude oil, one would think we Americans would be cheering since we love driving big cars. Unfortunately lower crude prices (and prices at the pump) are also indicators of a struggling domestic and world economy. U.S. companies need strong international economies […]
RichC | December 16, 2015
The relatively flat year for stocks reflects the sentiment of many Americans who instinctively know the long and slow economic recovery has been unnecessarily hindered by politicians. The United States is certainly capable of stronger grow overall and in my opinion the blame lands heavily on the burdensome regulation, high corporate taxes and bloated government […]
RichC | December 8, 2015
Warmer forecasts, no production cut by OPEC and inventory surplus is keeping energy prices low and crude oil has moved to seven year lows. The impact is being felt by small leveraged U.S. oil companies who are on the brink of bankrupcy and even creating waves throughout the economy. As I tweeted… Oil prices fell […]
RichC | September 23, 2015
No doubt the American Dream is slipping away from the middle class, but a quick look a few graphs below depicts an even more dismal image of a nation in decline. Is it too late to turn our country around? Let’s hope not! Unfortunately too many regulations, thousands of laws, taxes on taxes and […]
RichC | August 21, 2015
We often hear the “firing on all cylinders” comment when talking about fiscal execution in managing companies … well the U.S. and World economy is not currently firing on many cylinders. Countries in Asia have been taking their lead from the 2008 model enacted by the US Fed which devalues currency in relation to other […]
RichC | June 5, 2015
The jobs numbers were relatively positive considering the weak growth earlier this year, but still concerning in that the post-recession job growth is not was is normally expected after a recession. Still, one positive is that we are not facing inflation or seeing numbers that would indicate the U.S. is slipping back into a recession. […]
RichC | April 8, 2015
Very confusing numbers in a recent Wall Street Journal graph noting that the number of job openings being posted are way up (green line) … up to the highest level in 14 years. That’s good news right? Unfortunately a look at the red line shows the number of hiring. Hmm, that trend has moved down, […]
RichC | February 6, 2015
While watching my Twitter feed and tuning into Squawkbox on CBNC (my usual morning routine), the excitement was notable particularly since partisans on both sides of the political spectrum spar to take credit for improving numbers. We do seem to be on a trajectory of adding jobs consistently which should eventually put pressure on employers […]
RichC | January 15, 2015
While watching the stock market decline and gold prices rise this week (Swiss franc against the euro decoupling) and listening to economists suggest deflation is likely, it is becoming clear that the slowdown overseas will be impacting earning for large cap companies and international funds. The U.S. economy seems to be holding up, but pension […]
RichC | December 29, 2014
As the year draws to a close, we can be thankful for economic boost coming from cheaper gasoline. The chart above show just how rapid the decline in the price of Crude Oil changed. It illustrates the unbelievable shift in the cost of energy for all of us. It is partially due to demand, but […]
RichC | December 5, 2014
It’s not entirely fair to blame President Obama for American decline and China’s rise in economic prominence, but his lack of inspiring American Exceptionalism and worldwide apology tour hasn’t helped. Words and attitude aside, his policies slowing our economic recovery are most to blame as we watch industry evaluate the best place to invest capital; […]
RichC | November 4, 2014
There is a populous push coming from Democrats and the Obama administration to increase the Federal minimum wage … instead of letting markets to set the proper levels. It’s understandable with all the negatives facing the Whitehouse and failing policies being pushed by Democrats to create jobs, that politicians resort to simpleton tactics that appeal […]
RichC | October 31, 2014
A big morning for stocks as global markets celebrate Japan expands their stimulus. The DOW hit an all-time intraday high as giddy investors bought blue chip equities expecting the economy to continue to grow. The good news of better corporate profits and the Federal Reserve’s finalizing their stimulus makes Wall Street feel good … BUT […]
RichC | August 24, 2014
The stock market roars to new highs as the summer comes to an end, but investors continue pouring money into higher risk equities as if they have forgot what can happen. This is in part due to the low yield in fixed income assets and the new indice highs have more than a few economy […]
RichC | August 4, 2014
While reading President Obama’s comments in The Economist, the same class-warfare ire continues to be flamed for those who believe those living in the United States are against each other: Poor vs. wealthy, CEO vs. employee, ambitious vs. entitled, black vs. white, Democrat vs. Republican, etc. Isn’t it possible that those CEOs and corporations being […]
RichC | July 10, 2014
I listened to a debate on CNBC on Wednesday morning featuring Princeton economics professor Alan Krueger discussing the problems of long term unemployment which lead to Joe Kernen suggesting there are financial disincentives to taking entry level jobs … the kind of work the unemployed need to gain experience. Krueger discounted that people weigh the […]
RichC | July 2, 2014
I’ve been doing some reading lately from those concerned about an uptick in inflation. Since many of the writers are the same people who have been warning for years about inflation, it is easy to take their analysis with a yawn and a bit of skepticism. Still, my commonsense indicator has also kicked in […]
RichC | June 18, 2014
Ukraine continues to be under siege, SE Asia and Africa have unstable countries, Afghanistan will most likely go back to Taliban control, Iraq is imploding … but European markets are said to be in “recovery” and U.S. stock indices continue setting new highs and generating overly inflated annual returns for those “fully” invested (since when […]
RichC | June 6, 2014
While closing the first full week of June on a rather high note (all time high!), the financial markets and Dow Jones Industrial Average pushed ever closer to 17K — DJIA closed at 16,923.77 up 87.66 (0.52%). I’m probably not the only one wondering how companies can keep performing when consumers have fewer dollars leftover […]
RichC | May 6, 2014
Outspoken President and CEO of the Federal Reserve Bank of Dallas, Richard Fisher, talked with Maria Bartiromo on her new Sunday Morning Futures program this weekend and laid out a good case lower tax rates. His point is that money and investment flows to where it is treated the best and in turn jobs and […]
RichC | May 2, 2014
Love him or hate him, billionaire “business magnate, politician and philanthropist” Michael Bloomberg clearly understands the effect the Federal Reserve has when it comes to pumping money into the economy. So simple and so true when it comes to who benefits the most from government trying to solve business and wealth inequity problems. He is […]
RichC | April 11, 2014
Those who spend any time watching financial markets and attempt to analyze a mix of investments the future, understand that there are mix signals coming from economist, financial analysts and those hired to manage investments (or pick for TV). I follow both the bullish and the bearish thinkers, yet end up being more conflicted about […]
RichC | March 23, 2014
Wallethub compared how average families from each state when it comes to paying taxes … how does your state look? According to their color coded map, the brighter red your state, the more you pay; conversely, the greener your state, the lower your taxes, and brown puts you somewhere in the middle. If you hate […]
RichC | March 19, 2014
It’s a big day for Fed Chairwoman Janet Yellen as she took the stage and continued a third wave of tapering of the Federal Reserve’s bond buying program. Not that any of this was unexpected, but it an indication that the Fed sees the economy improving and is slowly removing the nation’s fiscal training wheels […]
RichC | February 4, 2014
If business growth is the medicine for job creation and a healthy economy … how does the U.S., or more specifically, each state, encourage business growth and incentivize expansion? Companies need to have an attractive tax climate in order to put capital at risk (or at less competitive), although it is not the only criteria […]
RichC | January 23, 2014
Would you like to have an “aha moment” in understanding why and how we attempt to manage our economy? Then watch this 30 minute YouTube video by Ray Dalio, founder of the largest hedge fund in the world, Bridgewater Associates. If you prefer reading, visit economicprinciples.org and download the research paper … the light bulb […]
RichC | November 4, 2013
Frequent guest and St. Louis Federal Reserve President Jim Bullard discussed making “decisions by the numbers” on CNBC’s Squawkbox this morning. He offered an opinion that current low inflation and a sluggish economy is keeping the Fed’s “loose money policy” in place and that conditions are not signaling a need to taper. I’m probably not […]
RichC | October 25, 2013
As a student of economics, a business manager and as a hesitant investor, I’m concern about what is going to happen when the Federal Reserve finally pulls the stimulus intravenous therapy? It is likely that Fed Chairman Bernanke is worried about weaning the stimulus too, by the fact he hasn’t started to taper. It is […]
RichC | June 4, 2013
There sure seems to be a disconnect between what my gut tells me about the economy and what the financial markets have been doing … and I know I’m not the only one growing concerned as evident by the growing number of articles. Europe is clearly in recession, China is slowing, U.S. consumer spending and […]
RichC | April 29, 2013
RichC | April 5, 2013
We’re hardly sputtering along when it comes to getting Americans back to work. One wonders why we bother to spend so much money on government when our over compensated bureaucrats only add to the problem. If it were not so frustrating and painful, government’s adding “programs,” meddling with tax rates and monetary policy and out […]
RichC | January 22, 2013
Pulitzer-Prize winning historian and biographer Jon Meacham made a few comments that had me nodding my head Monday evening in a discussion with Bill O’Reilly. I snagged a bit of audio while replaying for my wife. He was able to succinctly communicate the fiscal issues facing our nation and the seeming lack of urgency President […]
RichC | January 16, 2013
It is becoming increasingly clear the the answer the federal government’s excessive spending is to “broaden the base” … but before the attacks from Democrats begin, let me clarify my reasoning (highlighted below) and explain. The current debate in Washington DC is whether to address the deficit (and mounting debt) by raising taxes on the […]
RichC | January 2, 2013
Well the “fiscal cliff” has been averted for the time being … a sort of a “kick the can down the road” decision was made in Washington DC … to use two of the banished terms for 2013 (link). The deal with hardly dealt with spending, the deficit or the looming under-funded entitlements which are […]
RichC | December 28, 2012
Those old enough and wise enough to know how the sausage is was made in Washington DC have noticed a change in recent years. Politicians of different stripes and philosophies are no longer coming together for the common good … and the lack of a leader (aka: POTUS) willing guide congress is shocking. Here we […]
RichC | December 11, 2012
Those of us watching the “dance” in Washington DC over the looming taxes and possible spending cuts closing in on every American can make one’s head spin. What we all know is that our government spends too much and seems unable to even come close to balancing their budget or coming up with a plan […]