Corporations we see these names a. T. M. To General Motors and such racking up 10 trillion dollars in debt equaling to 47 percent of the overall economy well the biggest risk right now that all the analysts see is that 50 percent of the 10 trillion dollars needs to be refinanced by 2023 they need to be refinanced are paid back because its going to be doing 2023 and right now half of these corporations arent due and most likely they wont be able to pay it back because theyve borrowed right now where we have extremely low Interest Rates they currently are making investments into Capital Expenditures are hiring are increasing their efficiency as an operation now theyre hoarding it in order to make equity buybacks which really is artificially boosting up its stock prices for the Corporate Executives are not making any Real Investments into the company or boosting the economy in a way that originally Monetary Policy and took it out because economic dictated that it would so because of that
Be able to pay it back because theyve borrowed right now where we have extremely low Interest Rates they currently are making investments into Capital Expenditures are hiring are increasing their efficiency as an operations no theyre hoarding it in order to make equity buybacks which really is artificially boosting up its stock prices for the Corporate Executives are not making any Real Investments into the company or boosting the economy in a way that originally Monetary Policy and trickle down economics dictated that it would so because of that if theyre on able to refinance if theyre unable to pay loans their bonds would then be downgraded and as soon as they downgrade from what it currently is the lowest of the Investment Grade bonds that will start a callous in which case every other bond will start defaulting and then the fallback will be huge whoa whoa that is frightening and everybody is going to say its in your head is spinning at this moment right now because the explains all
Making money. Charles so i got to tell you, investors, at least the market appears to adjusting to worsening yield curve inversion. 10year lower than the two year. Just earlier this month, remember when that first happened, first time that happened, investors running for the hills. The stock market crashed almost, recession fears were rampant. What changed here . Here to discuss david dietze, and mahoney Asset Management president ken mahoney. Ken, the first time this happened, the dow was off 800 points. Closing at low of the session t was all the talk of financial and mainstream media, recession around the corner. What is different . What is causing inversion, part of it is foreign money coming into our markets. 15, 16 trillion of negative interest rates, that will bring money over. You cut rates a couple times, you get inversion. One is cause of it. Investors realize the cause of it, recession in the u. S. I dont think it will happen. More to do with foreign money coming in be buyin
Feet up kind of sit back say all right, whos really doing well . Whos really doing badly . Were having this relentless daytoday analysis. Were still the thick of it. Which is why we need to stay rigorous. This is made more difficult by the shear number of new companies that have had the guts to come public. Lets start with next monday when we get results from clorox. The quintessential consumer goods Package Company that was run so well for so long. Ive studied this company long much to know that its in capable hands and i bet that tradition to good solid numbers that tae how will clorox to become a good Portfolio Holding for so many of you satisfied viewers; i expect good things. After the close, we hear two from two radically Different Companies with stocks, dennys and bio morin. Dennys report drad mat i can upside supplies but the market yawned because Rising Oil Prices turned investors sour on the restaurant group. Then the ceo told a great store pri. Gasoline has fallen since and
At 10 00 a. M. , us home sales for the month of april. 2 00 p. M. The fed releases the book ahead of jobs friday and 3 00 President Trump welcomes the Prime Minister of vietnam to the white house with trade on the agenda. Jonathan it has been a choppy session for sterling. A projection in the times shows Theresa Mays Conservative Party may miss winning a can a conservative party and face a Hung Parliament. Study based on a new model and showed her Party Falling short of the majority by 16 seats. Joining us from london is an morass thomas. Great to have you with us on the program. Break down the new study and the methodology and whether we should take this with a huge dose of salt. In britain has been in crisis. They have the brexit referendum in the last general election result. This study seeks to address some underlying problems in pulling. You can win a majority getting a majority of the popular vote so really elections are won and lost on 100 key constituencies. This poll tries to