Let’s start with sports. Baseball Opening Day started well for Nationals fans with a great 4–2 win over the Marlins, and the day ended with the UNC Tar Heels capturing a 6th national title. All this despite the horrific foul shooting. Oh, and Georgetown alum Patrick Ewing has been hired as the head basketball coach by the Hoyas. He will definitely get players attention with his 7” frame. I hope to see them back in the tourney next year.
The White House has a new proposal to repeal and replace the Affordable Care Act (Obamacare). Freedom Caucus Chairman Rep. Mark Meadows told reporters Monday night that the proposal was “a solid idea,” and said his caucus would evaluate its impact on premium costs. Remember it took Obama over a year to get his legislature passed. Where will the markets be in the next year as this is likely to drag on?
All this as the president’s home state avoids a shutdown. New York lawmakers have passed an emergency stopgap spending plan authorizing Governor Cuomo to pay bills for the next two months. The state was supposed to have a budget at the start of its fiscal 2018 on Saturday, but the legislature and Cuomo failed to agree on a comprehensive plan as they debated broader policies. Maybe it’s just because I’m getting older, but I never remembered hearing my parents talk about state governments shutting down.
Remember that time Bill Gates floated the idea of taxing robots? Well, a San Francisco politician is exploring that idea. Of course, who better to tax than Robots as we continue to pile on more and more debt. Right now the total global debt is a staggering $215 trillion (with a T, not a typo), which is 300% of global GDP. There will come a time where something will need to be done about this, because money (as we know it) will be worth so little that taxes on robots will be necessary. I hope that we figure it out before then, because Ai will not want to be taxed and machines are usually depreciated.
In other debt news, Sears Holdings Corp. (NASDAQ: SHLD) saw some insider buying this past week with its CEO and former hedge fund titan owner Edward Lampert buying 525,936 shares of the stock at prices that ranged from $7.68 to $8.45 — total new buy in at $4 million. Granted, Eddie is still a billionaire so $4 milly isn’t going to put him in the poor house if it goes to zero. Yet, many analyst and possibly big law firms are looking for Sears to head to Bankruptcy this year. Yet, with the markets continuing to push higher, VC’s aren’t stopping their shopping spree for startups.
Want to lose weight? Get some gut bacteria through magnetic brain stimulation. Tesla’s market value overtakes Ford while selling only a fraction of the number of cars Ford does, and with no clear line to sustained profitability. I want to put this into perspective. In 2016 Tesla delivered 76,000 cars globally, while Ford sold that many vehicles last week alone. This news has me even more bullish on Ford and thinking that Tesla could be a massive disappointment at this price (~$300) for long-term shareholders.