Tale of ‘The Tape’

The markets referred to daily in the financial press are composed of Wall Street trading on regulated stock exchanges, less formal Over the Counter (NASDAQ) markets, organized commodity exchanges worldwide, and specialized trading in major financial centers across the globe.

Old timers often refer to price reporting as “the tape”, a reference to a 19th century telegraphic system that reported individual security transactions. By extension, one “fighting the tape” meant going against factual trends (i.e., the markets are poised to remain positive) because he presumes to be better informed. This also would be known as a contrarian.

In a vast industrial sector, price levels are indicative of anticipated corporate performance. Recent markets that have risen to record breaking levels have given huge thumbs up to GOP economics and the leadership of President Donald J. Trump.

High speed electronic data transfers have sent Edison’s ticker tape to museums. Modern trading desks are where authority to assume billions of dollars of risk is granted to alert young people who may not have reached their 30th birthdays.

Many believe the free market performance in a competitive marketplace driven by perfect competition is the most reliable indicator of future pricing of equities and commodities. Perfect competition is defined as the situation prevailing in a market in which buyers and sellers are so numerous and well informed that all elements of monopoly are absent, and the market price of a commodity is beyond the control of any single individual buyer or seller. It is a classical economic theory.

The world’s trading in wheat, crude oil, strategic metals and international markets for a nation’s currency, provide spot pricing (today) or a fixed future price defined by delivery at distant point of time. A user of cotton, for example, will set his raw material cost by purchasing a given amount of the commodity at a fixed price for future delivery. Sellers of cotton, farmers for example, eliminate market risk by selling their anticipated production for future delivery.

There are many investors who enter the market as speculators and their risk is their own capital based on an individual analysis of market conditions. Publicly traded stocks anticipate corporate earnings and dividends and a rising equity price indicates belief in an enterprise’s growth over time. Collective wisdom, many economists believe, has a superior predictive capability.

So, today’s “tape” is saying that tax reductions, less regulation and decentralization of decision making is good for most Americans. Anticipated growth seems to be a more laudable goal than redistribution, espoused by the left.

Let’s turn to the anti-Trump political climate that emanates from believers in progressivism. They believe so strongly in government control they are unrealistic in their analysis of public data. They are fighting the tape.

The Trump assertive leadership, while something new to Washington, has found favor among Americans. Wall Street performance says so and all the tales of gloom and doom from the disciples of the FDR New Deal and the Johnson Great Society are clearly backward looking using faulty economic logic. Similarly flawed logic was expressed, ahead of Trump’s election, by Pulitzer Prize-winning New York Times columnist Paul Krugman, who predicted that a Trump victory would trigger an economic collapse from which the United States might never recover.

Current Democrat party leadership has adopted a policy they have called “The Resistance.” This is proving to be not very useful thinking to combat international threats stirring in North Korea and Iran to world peace and prosperity. It is a policy risk that is devoid of constructive thinking at a time when it may be clear to voters that policy changes are urgently needed.

The party of Sen. Chuck Schumer (D-NY), California Gov. Jerry Brown, and Rep. Nancy Pelosi (D-CA) is not the party of FDR, Kennedy, or even Barack Obama. It offers no ideas about production and preaches consumption with fairness predicated on a system that buries individual responsibility.

American success is due to creative individuals who shoulder responsibility, show up on time and take pride in a job well done. Collective performance leads to collective prosperity. Yet the Democrat Party continues fighting the tape.

– Walter B. Bull, Jr.
 

The Trump trap

As gridlock rages on in Washington, we are discovering that the shared commitment by Moore County Republicans to pursuing security, opportunity, liberty and victory is not always embraced by lawmakers. This only has become magnified in the age of Trump as Republicans in Congress seem paralyzed by the power they wield as the majority party.

It seems inexplicable that Obamacare has not been dismantled or that meaningful tax cutting is proving to be an excruciating legislative chore (even though Republicans were elected by voters who name these as priorities). As it turns out, there is an obvious explanation. It is proffered by North Carolinian and veteran political analyst John Davis, keeper of The John Davis Report.

Congressional leaders take heed: Every despicable, incompetent, crude, insulting, immature, reckless, irresponsible and insensitive thing that (President) Trump has ever said or done COMBINED, is not as bad in the minds of his supporters as a do-nothing federal government rigged for the privileged few.

President Trump will continue to make fools of U.S. Senate and House leaders who continue to protect the swamp, who put the moral high ground of the way things have always been done ahead of getting things done. Those who value civility over outrage.

The mainstream media, Democrats and even some centrist Republicans remain in a constant state of despair about Trump, his candor and his Tweets. He is not “presidential” enough. Precisely, notes Davis. If we want to see “the swamp” drained, you don’t do it with a Jeb Bush or a John Kasich.

“Donald Trump,” Davis writes, “is what you get when there is no presidential way to drain the swamp.”

He further cites the recent showdown between Tennessee Sen. Bob Corker, a Republican, and Trump. The President views Corker as just another entrenched swamp creature, even though Washington conventional wisdom would dictate that Trump avoid skirmishing with the chairman of the Senate’s Foreign Relations Committee.

Corker went after Trump in the aftermath of the Charlottesville (Va.) white supremacy march, joining a media chorus of feigned outrage directed at Trump because he did not adequately denounce the incident (though he did in no uncertain terms). Corker questioned Trump’s stability and competence, playing into the long held media narrative. Trump tweeted that he found Corker’s criticism odd in that Corker had begged for Trump’s endorsement before announcing he would not seek another Senate term. Observes Davis:

That’s it for Corker. He is now in the Trump trap. The latest Republican on a long list to fall prey to Trump’s ploy of needling his opponents into the tangled web of reactionary vindictiveness.

At their peril, DC swamp politicians continue to miscalculate the political consequences of demeaning Trump as an individual, or diminishing Trump’s presidency through inaction. Trump’s approval rating is below 40% but he remains a rock star in contrast to tepid Congressional approval numbers. Davis observes that they apparently fail to see what is coming in 2018, a tidal wave of dissatisfaction.

Unfortunately for establishment Republicans, the voter outrage that propelled unpresidential Donald Trump past their hand-picked candidates for president is now being redirected against US Senate and House Republican incumbents in next year’s GOP primaries. In today’s political environment, the establishment is the kiss of death.

 

 

 

 

Trump ‘sabotages’ Obamacare, finally

A Fox News Channel commentator cleverly selected a golf reference to describe the impact of President Donald Trump’s October 12 executive order on a law bearing a famously disingenuous name, the Affordable Care Act. Harris Faulkner said Trump’s order will “take a divot” out of the law, a.k.a., Obamacare.

To carry that a bit further, it is one of those big, sloppy divots off of a drenched fairway that splatters one’s golf togs on precisely the day white slacks seemed a good fashion call. Obamacare, as time has proven, is not a pristine, sun-drenched Pinehurst No. 2 during a U.S. Open. It is a beaten up municipal course with poor drainage and a neglectful maintenance crew. Continue reading “Trump ‘sabotages’ Obamacare, finally”

America is back

 

 

By Walter B. Bull Jr.

Before the analysis of President Trump’s September 19 address to the United Nations is compartmentalized by liberal and conservative writers, I would like to put forth my unvarnished opinion.

I liked the tone and American themed text that was not politically driven drivel pushed by the unrealistic cadre of Democrat politicians. Many listeners didn’t care for his philosophy. The stony silence when our president brought up the long term track record of failed socialism and central control of an economy by strong men dictators indicates Mr. Trump was testing his audience. Continue reading “America is back”

Trump’s thriving presidency

President Donald Trump is an unconventional president. He does things that even some of his supporters don’t like. However, it pays to remember that’s why we elected him in the first place. Our country is facing huge challenges and conventional, establishment politicians haven’t gotten the job done. Change is needed.

During the first seven months of President Trump’s term, media coverage has been overwhelmingly negative. It is no exaggeration to say that the mainstream media are intent on forcing him from office, which would be a disaster for our system of elected government. The Democratic Party is overwhelmingly opposed and unified in its all-out resistance to the president. Even some Republicans in Congress are failing to support him. Considering all of that, it is important that we focus on President Trump’s extensive accomplishments during his first seven months. The list below includes some of his administration’s most significant. We urge you to keep these things in mind and support President Trump as he works to Make America Great Again. Continue reading “Trump’s thriving presidency”