Thursday, June 11, 2015

Thursday, Part III -- June 11, 2015

Greece talks collapse. Link here. Not only is there any progress, the group is breaking up, going home for the weekend.
A spokesman for the International Monetary Fund says its team has returned to Washington after negotiators made "no progress" on resolving Greece's debt crisis.
Gerry Rice told reporters Thursday that "We are well away from an agreement."
Based on what little I know about economics and listening to the sage advice of Nobel-Prize-winning economist Paul Krugman, the IMF, EU, EC, Germany, and France all need to throw huge amounts of money towards Greece to stimulate their economy. It was just reported this morning that Greece's unemployment rate is now at 27%. Austerity for Greece is not the answer. In addition to those mentioned, the US and Russia also need to throw huge amounts of cash to the Greeks. The Russians may not have much loose cash to throw around but they could certainly help out by providing Greece with all the free natural gas and oil the country might need. It would be a twofer: taking this natural gas/crude oil off the open market would help support global energy prices. So there you have it. Paul Krugman's answer for Greece.

US stock market, the Dow: up almost 250 points yesterday, up another 65 points in early trading today.

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Tesla

From a Seeking Alpha contributor regarding Tesla:
Is Elon Musk reconsidering whether he wants to be a major car player or would he prefer to be a major battery manufacturer? Listening to the powerwall product announcement, I got the impression that Elon Musk is having second thoughts about whether Tesla can ever make money in the automobile industry due to the very high capital requirements.
Everybody, it seems, except retail investors who are getting sucked into Tesla, knows this dirty little secret: Tesla is a battery company disguised as an automobile company. As an "automobile company" it will make huge amounts of money by a) selling its CAFE credits to major automobile manufacturers; and, b) being bought out five years from now by GM for the battery technology.

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GE Will Leave Connecticut

Will GE move its headquarters to Texas?

2 comments:

  1. The next giant sucking sound in Connecticut will completely eclipse all previous sucking sounds heard throughout the 1960s, 1970s, 1980s, 1990s and 2000s. Right after that will be the sound of the Governor and Legislators putting on their kneepads. Welcome to #Hypocriticut - where there is no discernible difference between Rs and Ds, both are greedy as all heck. The goals appear to be 1) get out of here all you taxpayers and 2) a gas station with lottery, fast food joint, pharmacy and casino with liquor store at every intersection. I'm constantly reminded of our state motto - He Who Transplants Sustains; time for me to transplant. Good luck to the generational Welfare folks and the retired state employees.

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    1. If GE / Immelt don't announce their intent to move soon (out of Connecticut), they are not upholding their fiduciary responsibility to their shareholders. I don't hold shares of GE, have never invested in GE, never will, so I'm just a spectator. Thank you for taking time to write.

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