How
Auto Sales Are Getting Crushed in Houston - (www.wolfstreet.com) But
now the office sector is drowning in empty space on the sublease market even as
new towers are being completed. The chemical-plant construction boom peaked in
early 2015. Construction projects are being cancelled and put on hold, and the
entire construction sector has collapsed. In January, nonresidential
construction starts plunged 44.7%, from $1.05 billion to $580 million,
according to data cited by Greater Houston Partnership. While residential construction starts
rose over the 12 months through January, total construction starts –
residential and nonresidential – are down 23.6% for the 12-month period,
compared to a year earlier, to $14 billion. Within a year, the construction
business went from blistering boom to collapse. Construction booms of the
magnificent kind that Houston experienced after the Financial Crisis boost the
local economy in many ways, from raw materials to labor, and they support a
wide variety of other sectors, such as the retail and restaurant sectors – and
auto sales.
Are
Collapsing Pensions "About To Bring Hell To America"? – (www.zerohedge.com) The
toxic dollar is bringing hell in a handbasket. Along with the student loan debt
bubble and other major financial factors, the looming pensions crisis is bound
to be the death of us all. Because it’s based on a future promise to pay, it
has long been a benefit dangled to solve strikes and union disputes – because,
in the end, it is just more debt, whether private or public. With tens of
trillions in unfunded liabilities, the weight of an avalanche remains dangling
over our heads. An aging population is cashing in on needed retirement benefits
while the younger generations must support multiples that are unsustainable
financially. Somewhere between the retiree that needs clothing, food and lodging,
and the bankruptcy of cities and state governments is the makings of the next
economic crisis. via AgainstCronyCapitalism.org: This is one of those things that few will pay
attention to until it’s a 5 alarm fire. Then the policymakers will run around
with their hands in the air saying they didn’t see it coming. Of course they
did. But addressing the problem is hard and will make people unhappy in the
short term. This blog pointed out the sad, and quiet fact that entities like
the government of South Carolina are deep in debt over pensions. Everywhere
there are failing social systems.
A
Mountain of Bad Debt Looms Over Modi - (www.bloomberg.com) With
a resounding domestic political victory behind him, Indian Prime Minister
Narendra Modi turns attention back to policies this week. One area key to watch
for investors: progress on resolving a mountain of bad debt that’s restraining
the private economy. Modi, who swept to power in federal elections in 2014 and
this weekend notched a decisive win in India’s largest state, has championed
reforms for businesses yet overseen an expansion that’s been propelled by the
public sector. Key to that shortfall has been a decline in credit exacerbated
by the lack of a national plan to clean out non-performing loans. “Loan growth
has been falling and remains anemic by historical standards as a result of the
banks’ asset-quality challenges,” said Swee-Ching Lim, a portfolio manager at
Western Asset Management in Singapore who’s been analyzing credit markets for
almost two decades. “This lack of credit growth will likely continue to be a
headwind” for India’s economy, he said.
How to Lose $4 Billion: Bill Ackman's Long Ride Down on Valeant - (www.bloomberg.com) Bill Ackman was used to the question: how could he stick with a loser like Valeant? But here it was again, this time over lunch with investors and bankers in London on Feb. 28. And there was Ackman, defending a signature investment that, on paper, had cost his clients billions. Yes, Valeant’s share price had cratered. But he insisted to attendees that the drug company’s turnaround prospects were bright, according to people with knowledge of the meeting. So much for that. Ackman had spent the better half of two years trying to convince just about anyone he was right about Valeant. On Monday evening, just two weeks after that bullish lunch arranged by investment bank Jefferies Group, he conceded what most on Wall Street already believed: In fact, he’d been spectacularly wrong. News that his Pershing Square Capital Management fund had sold its entire stake at a monumental loss was greeted with equal parts shock and relish.
Trump
budget would slice domestic programs, foreign aid - (www.reuters.com) President
Donald Trump asked the U.S. Congress on Thursday to approve a 2018 budget that
would bolster military programs and begin building a wall on the southern
border with Mexico while drastically cutting many federal agencies. Trump's
plan, showcasing his administration's priorities, is just the first volley in
what will likely be an intense battle over spending in coming months. Although
both the Senate and House of Representatives are controlled by Trump's fellow
Republicans, Congress holds the federal purse strings and seldom approves
presidents' budget plans. Trump's plan took a big swipe at some federal
institutions, envisaging a more than 31 percent cut, or $2.6 billion, for the
Environmental Protection Agency and a 28 percent reduction, or $10.9 billion,
for the State Department and other international programs.
China
to Trump: We don’t want a trade war — but if there is one, you’d lose - (www.washingtonpost.com)
Here’s One Chart That Captures the Debate Over Quantitative Easing - (www.bloomberg.com)
Fed Expected to Raise Rates, Hint at Future Increases - (www.wsj.com)
Why Is the Fed Raising Rates? Better to Ask, Why Not? - (www.nytimes.com)
Exclusive: Taiwan says Chinese military threat grows, U.S. regional strategy unclear - (www.reuters.com)
Here’s One Chart That Captures the Debate Over Quantitative Easing - (www.bloomberg.com)
Fed Expected to Raise Rates, Hint at Future Increases - (www.wsj.com)
Why Is the Fed Raising Rates? Better to Ask, Why Not? - (www.nytimes.com)
Exclusive: Taiwan says Chinese military threat grows, U.S. regional strategy unclear - (www.reuters.com)
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