Registered Investment Adviser Caleb Lawrence
The major averages enter the final hour about even on little real news. The New York Fed regional index slipped 10 points to a still positive 9.8 in July on broad based declines.
It’s not often when a .01 percenter gets up publicly and criticizes the dysfunction coming out of Washington DC. Yet that is exactly what Jamie Dimon CEO of JP Morgan Chase bank did late last week. Criticizing the Trump administration for a lack of positive policy and legislative progress. Mr. Dimon made some good points including urging policymakers to unite for the good of your average American. Yet I can’t help but think that Mr Dimon is hardly innocent when it comes to policy that negatively affects your average American as JP Morgan Chase and other banks policies and reckless greed were instrumental in creating the 2007-2009 financial crisis and great recession that required trillions in taxpayer funded bailouts, amongst other items. While also encouraging journalists to get with the program and write about these subjects more often. I’ll give Mr. Dimon some credit on this even though it smacks of the pot calling the kettle black.
Office of Management and Budget Director Mick Mulvaney testifying before the House Budget Committee about President Donald Trump’s 2018 budget proposal noted that the deficit would jump by some 248 billion in the first 2-years of the Trump administration compliments of a tax collections shortfall, so much for the great economy narrative, and mistakes in calculating costs. The report also noted that tax collections for 2017 are expected to be $116 billion less than the administration anticipated in May and $140 billion short in 2018. With a generous military budget already booked, an inability to raise the debt ceiling means that severe cuts to social, education and environmental spending is all but certain.