Registered Investment Adviser Caleb Lawrence
The major averages begin the final trading week of the year with small losses on little real news. Bitcoin manages to rise phoenix like from the ashes again recovering all of the previous weeks losses. Apple seems to be having some trouble selling its iPhone X at $1,000 a pop. The trend of saber rattling continues with North Korea declaring the latest sanctions an act of war. The Indians and Pakistanis go hot on the border again. An analyst points out that there is neither an interest rate nor a tax base backing Bitcoin.
With the Gini inequality coefficient of America at an all-time record high of .81 it underscores the abject failure of public, tax and financial policy in America over the last several decades. The latest Republican Tax cut will only serve to drive inequality higher as a recent study by the Tax Policy Center shows that Trump’s signature tax plan overwhelmingly benefits the 1% as they stand to reap 80% of the tax cuts found in the bill. Adding insult to injury Trump addressed some friends over the weekend at his Mar a Logo resort saying, “you all just got a lot richer”. I wonder if he is familiar with French history and knows the story about Marie Antionette and her now infamous quip “let them eat cake” when told the peasants were starving and had no bread. Because a Gini inequality coefficient of .81 says much the same.