The Only Potential Risks Powell Sees Right Now

Jerome Powell told 60 Minutes that the only potential risks he sees facing the U.S. economy are slowing economies in Europe and Asia. Record Federal, state, corporate, and personal debts do not concern him at all. He is also not worried about the housing or auto markets. Crazy!

First Down Week For U.S. Stocks In 2019

In fact, this is the first down week that the U.S. stock market has had in 2019. Something tells me it's certainly not going to be the last.

China - U.S. Trade Deal: "I don't think we're gonna have a substantive deal"

I don't think we're gonna have a substantive deal that gets to the root cause of that I think that there's gonna be a deal I've been saying that since the beginning I think that Trump can't afford not to have a deal so there's gonna be one but it's not going to turn around America's massive trade deficit with China.

Stock Market & U.S. - China Trade Deal

The market already expects a trade deal – a good trade deal. I think that is a dangerous position for the United States because it puts President Trump in a position where he really has to deliver.

More Signs Of Economic Weakness

Look at the data coming out: (we had) the biggest drop in retail sales in one month since 2009 when we were in the Great Recession. 

Look at the numbers we got out on delinquencies in auto loans: they are at an all-time record high, on people who are 90 days or more behind in their car payments.

I just read today that restaurant sales are falling now for four out of the last five months at the fastest pace in more than 25 years. That means that restaurant sales now are weaker than they were in the 2001 recession or in the 2008 recession.

The Real National Emergency

Of course the real national emergency is not the lack of a wall, the failure to build a wall but building up the national debt to $22 trillion! We eclipse that dubious milestone earlier in the week and again when you talk about the national debt at $22 trillion we're talking about the tip of a huge iceberg. 

This is just a funded portion of the debt and it doesn't include liabilities like what the government owes for social security, guaranteed bank deposits or student loans. That's not there, those are contingent liabilities and they're just as real but they're not even part of the national debt.

So, when you look at all the liabilities that the US government is on the hook for, you're talking about well over a $100 trillion or $200 trillion. Twenty trillion is maybe five or ten percent of the debt but that debt that is the real national emergency.