Screwball

Anyone who watches the hurricane season, please chime in here. Is there a threat to the gulf that could effect the oil/gas shipping in and out?

Sounds about right - the financilization of any and everything under the sun, and the more money you create, the better (for them). And when they blow the whole fucking world up we bail their criminal asses out. That's a feature, not a bug. Fuck banks.

I'm watching the 3636.87 level, which is the next support level. Might not see it today.

Nixon, Bretton Woods, and the gold standard changed all this. That was August 15, 1971. And before anyone jumps my shit - I'm not saying anything good or bad about this - just noting the date.

I used to build a bond ladders using 1 month T-Bills. They didn't pay much but over the course of a year I could get about 1.7 percent on a ladder by rotating 4 - $10,000 buys a week apart. So you had 4 bills, with one maturing each week (which I would re-purchase). This is slightly better than the return of .01 percent the bank was paying on money that just sat in the account. Yields went so low it wasn't worth doing it, and at one time I think they even stopped issuing them. You can do the same thing with a brokerage account. Both setup through Treasury Direct (comes straight out of my bank account). I checked today and they prices are back to where it is worth doing. You will make about 20 bucks a month on 10 grand. With 4 bills, that's 80 bucks a month, or 960 a year. Not much, but free money on cash sitting in a bank. You might not get quite that much as the rates fluctuate (bond auction), so the return might not be 2.4 as is the example I used. You can also find some decent paying corporate bonds that mature in short periods of time, that are not junk rated, if one's goal is less risky investments and the ability to become liquid in a short period of time in case a better return presents itself. Yes, the saver has been taken out to the yard, beaten, kicked, pissed on, and then ran over.

The date you seek is 1971.

Some banks announced a 75bps raises to their prime rate today. At least 3 of them but I can't remember which ones. JP Morgan was one I think. While checking our savings account rate, I see no change. Such a fucking deal.

Interesting question, in a couple of ways. Some are using the dot plot numbers to explain the sell off, which is viewed as a commitment from the FOMC to continue the hikes. That is only one narrative from the vineyard of choices and usual suspects. I think that makes sense if you believe in dot plot bullshit. We won't know the results of these moves for months. All we can do is watch the numbers going forward. Rising interest rates will create pain, we just don't know how much, or where - yet. As far as the market moves today, I might be crazy (I'm good with that), but I think it was Wall Street doing what Wall Street does. Separate people and their money. They are the smartest guys in the room. And they run the markets too. What a fuckin gig!!!

75 bps and the dot plot shows no let up. One minute chart of the S&P today. I'm guessing some people got their faces ripped off, especially the Robinhood tyro types. This is some pretty wild volatility given everyone was predicting 75.

I'm getting flashbacks from this corporate America stuff... I just have to say this. I've been retired for going on 4 years. I spent 25 years with 3 F500 companies. I only wanted to be a foot solder doing my job and going home and take care of my family. Unfortunately, my skill set pigeon holed me to the corporate clusterfuck known as the IT/CAD/Eng end of what William Edwards Deming would call the "state of chaos." If the day to day pressure of getting the trains to run on time (product design & manufacturing) wasn't enough, from the CAD world, you had a second job of rendering pie in the sky marketing wish lists of products that can never be built, or if they could, can't be profitable. Many times obvious. Doesn't matter. And I have so much time (salary FTR). But you had to come up with some dog and pony show presentation to sell all this bullshit to the big swinging dicks. Then you got to go mingle with them after the big gig. I would make buds with the bartenders and staff, while we laughed at these disgustingly phony china dolls get ate by the feeding frenzy of the next in line worthless corporate worms. I honestly don't know how the fuck they made anything.

More than a bit. Lot of history there, rather you liked it or not.

Understand. I did 25 years with 3 fortune 500 companies. We always wondered how they would game the system (numbers)to screw us out of bonus money, raises, etc. You are always being squeezed. Speaking of raises, I have to tell this one. We had a raise system where we could only get 4 percentages of a raise. 0, 1.7, 3.2, and 4. They told us nobody would get a 4, so it was going to be 0, 1.7, 3.2. You had to be a real slug to get a 0. My boss spent about 20 minutes telling me if my "people skills" were a little better I could have gotten the 3.2 instead of 1.7. He didn't come right out and say it, but that was his speech. It was a political hot house with backstabbing as the norm - anything to climb the ladder. I didn't play those games and didn't mince words with those who tried, so I had a bullseye on my back. After this little speech by my boss (a real dickwad), I said "so your telling me if I didn't piss off people I could have done better (or something like that), and he said "yes, you got it." I looked at him and said, "well, for a measly 1 1/2 percent I'll continue to be a prick." That was the end of my yearly review. I was getting 1.7 like everyone else as it was. Who do they think they were shitting. Fuck corporate America and all the corporate worms that inhabit their management.

There is another way to look at this, speaking of borrowing and paying interest on said debt. Company borrows a bunch of money. They buy back a bunch of shares (which happens often)which drives the price of their stock up, which makes the CEO, board, corporate executives, and stock holders wealthier. Then they write off as much of the interest as possible, so it doesn't contribute to the tax burden for the rest of us. So they get richer, and we suffer by paying more of the taxes. At the same time Wall Street gets more money from the interest paid, so they win too. The more debt created, the richer the rich get, while the rest of us get fucked. What's not to like? A feature, not a bug. So debt is good. It just depends on who you are.

Fuckin A! Right straight to Wall Street (the swine fucking bankers). In the phrase "Interest Expense" I always thought the word "expense" spoke for itself. But that's just me.

Good to hear. The market is a whore. Quote from an old documentary about the floor traders in Chicago. A must watch for anyone who likes the markets. This dude called the market a whore and nailed it. It was called "Floored."

I don't know what this is suppose to prove. I just linked to the exact same survey.

I wasn't aware the 777 was about airplanes. Maybe you should be more clear instead of code. This isn't difficult, and I'm tired of arguing about this. One more time from a different source; Interest Expense - from Investopedia

In Latest Sentiment Poll, Buying Conditions Are the Worst in Decades

They have been trying to reduce their debt since may (see below). This latest report stated they were "Reduced its forecast for capital expenditure for the year by $500 million to $6.3 billion." Wonder why? I don't know where the 777 stuff came from, but that sure as hell ain't what they are doing, so nice try. FedEx to Reduce Debt by 11 Percent Following Completion of Strategic Public Offerings - from May FedEx shares sink after company cites weakening global demand - the capex info

I don't see the growth, and the Fed's GDPNow would agree.

You lost me here. FDX has 22 billion in debt according to their filing. A one percent rise in interest rates on that 22 billion is an increase of 222 million that goes directly to the bottom line. I don't see how that is good.

I get that. I used EBITDA as an example to show why interest on debt matters. The "I" in EBITDA is interest. It is just another tool investors use evaluate companies. If your argument is the balance sheet is a better source for sound investing advise, I'm on board with that. EBITDA might have a purpose but not a metric to fall in love with. But servicing debt matters - which was my main point. The price of debt going forward will determine how we live. Rising interest rates are deflationary. That is the purpose of doing so, which the Fed is doing. The rule of 72. The last CPI print was 8.3. That means a double in 9 years. Those numbers are simply unsustainable unless we want chaos. The only question is who will feel the pain? But don't worry, the Fed pukes and Bubblevision tell us hiking interest rates can be done and have a soft landing at the same time - whatever the fuck that means. It's different this time I guess. <giggle> Except it ain't funny.

The interest paid on debt?

Jesus h christ This all started when I brought up corporate debt, and the cost of servicing it. Which goes to the bottom line as a loss against revenue. Which is part of the bigger picture known as EBITDA of a particular company. This should be obvious, but when interest rates go up, so does the cost of servicing it. Since the 55 million seems to be a metric, and should be ignored, and people even fired over it, if I understood things correctly, fine. But the companies I worked for would fire my ass in a heartbeat if that happened. And maybe look at it this way; how many jobs would 55 million create? Doesn't matter, they are trimming fat because they are losing money, or at least the current investment community thinks so (bunch of downgrades today). Penny smart, dollar stupid. Should be corporate America's motto.

That's funny. You must be from the Paul Krugman "debt is good" school. These 4 Measures Indicate That FedEx (NYSE:FDX) Is Using Debt Extensively FTA: Debt load is part of (EBITDA).