| MARKET ROUNDUP | |
| Dow | -50.67 to 16,662.91 |
| S&P 500 | -0.12 to 1,955.06 |
| Nasdaq | +11.93 to 4,464.93 |
| 10-YR Yield | -0.055 to 2.345% |
| Gold | -$10.30 to $1,305.40 |
| Crude Oil | +$1.41 to $97.01 |
Is the “New Cold War” between Russia and the West going hot? That’s the serious question investors and governments are wrestling with today, as conditions on the ground in Europe rapidly deteriorate.
To catch you up on events: We’ve been reading for a few days about a Russian relief convoy heading toward Ukraine. The column includes more than 260 vehicles supposedly laden with sleeping bags, food donations and other supplies for the troubled eastern region of the country.
Many analysts speculated that Russian President Vladimir Putin was sending a modern-day Trojan Horse toward Ukraine. They believed his real goal was to use the humanitarian convoy as cover to supply even more arms and personnel to rebels. Or he could use Ukraine’s refusal to allow the convoy entry as justification to invade.
Then earlier today, two British journalists reported watching a separate column of more than 20 Russian military vehicles and troops heading into the Ukraine. That’s something Ukraine has accused Russia of doing for a while. But this was the first time we’ve seen independent confirmation from non-aligned, non-partisan observers.
Then late this morning, the stock market tanked … crude spiked … gold prices reversed higher … and the euro fell. The reason? Ukraine claimed it attacked and destroyed at least part of the Russian military column.
This would be the first direct, blatant outbreak of hostilities between the two countries’ armed forces, and a huge escalation from the lower-grade conflict we’ve seen to date. Up until now, the battle has involved Ukraine’s uniformed soldiers and shadowy rebel combatants only surreptitiously backed by Russia.
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“The markets will no doubt remain on edge while we watch to see how events on the ground play out.” |
Needless to say, early reports are sketchy and there’s no telling how this process will shake out over the weekend. Russia is claiming it didn’t violate Ukraine’s borders.
But the markets will no doubt remain on edge while we watch to see how events on the ground play out. And if it turns out that uniformed Russian soldiers died in this attack, it dramatically increases the risk of a larger Russian response.
My investment prescription is to continue to avoid having too much exposure to Europe’s economy and its currency. I already noted that the U.S. is in better fundamental shape than Europe, and I don’t see how the euro holds up here if hostilities widen.
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| Conflicting reports have come out about the fate of the convoy that Russia says is bringing aid to people in eastern Ukraine. |
I don’t think it’s a “Sell Everything” moment … yet. As a matter of fact, any escalation in the conflict there should not only drive energy prices higher, but also increase the need for America to build up its own energy reserves and own energy infrastructure.
One of Putin’s biggest potential economic weapons is to turn off the oil or gas taps to Europe in retaliation for sanctions. Combined with ongoing supply problems in Libya, Iraq, and elsewhere in the OPEC world, that could help lead to even more gains for U.S.-focused energy firms!
[Editor’s note: Based on what Mike just said, you don’t want to miss his interview with energy insider T. Boone Pickens on Tuesday, Aug. 19 at 2 p.m. To register for this FREE online interview, click here.]
While we await more details, I’m curious about your opinions: What do you think Putin is getting at here? Is this the start of widespread hostilities? The beginning of a genuine “hot” war right on Europe’s doorstep?
How will European and U.S. officials react? And what will that mean for Europe’s lackluster economy, and American stocks? Share your thoughts on this incredibly important topic at the Money and Markets website.
| OUR READERS SPEAK |
In other news, yesterday’s article on Wal-Mart Stores (WMT, Weiss Ratings: B), the quality of its stores, and what it does or doesn’t say about the broader economy spurred a ton of great responses.
Reader Rayna T. said: “Once there was a time when my best friend and I could spend three hours cruising the store, enjoy our time and spend several hundred dollars. As a newlywed, I couldn’t have stocked my home without their layaway dept. (which they no longer have!). Even 10 years ago I seldom went straight home from work but made almost daily stops getting those few essential items I needed for dinner.
“Now however, I avoid Wal-Mart like the plague!!! Due to poor customer service, long lines (which Sam Walton would never tolerate), merchandise lacking in quality and variety, and just an overall unpleasant environment, my time and money is now spent elsewhere.”
Reader Deloris cited many of the same issues, saying: “I tried Wal-Mart again today and walked out and went to Best Buy. Not only was the service very POOR but the restroom was too dirty to use and the rest of the store looked like it was a slum area. I don’t think I will ever go back and I used to buy almost everything there.”
Meanwhile, Reader Tom J. had some great comments about the issue of wages, inflation, and Wal-Mart’s role in all of it. He said: “Wal-Mart’s image in the eyes of many consumers has suffered from the stark realities that their workers are abused by low wages, necessity of food stamp assistance and the deaf ears of Wal-Mart management.
“Low prices are in general good, but once the images get too shabby, consumers get a creepy feeling and avoid the store. Why take a trip to skid row when all you want to do is shop? This is what’s happening at Wal-Mart.
“It’s curious that you, on the one hand, suggest that employers increase wages to boost the economy, but on the other, reduce benefits and wages, to boost profits and returns per share. My sense is boosting wages will raise all boats. What’s yours?”
I agree that shopping at Wal-Mart can be a frustrating experience, with inventory of key items missing and general surliness and bad service a problem too often. So I think some of the problem stems from company-specific issues.
As for compensation, I would very much like Wal-Mart and other companies to pay their workers more. Cheap money and asset inflation from the Fed isn’t the answer to boosting the economy — at least, the vast majority of it.
The Fed’s “solutions” mostly help the 1 percenters. Just witness the record prices we’re seeing for expensive artwork, Manhattan condos worth tens of millions of dollars, and luxury automobiles sold at this week’s Pebble Beach car auction.
But can you really legislate that from Washington? Or do you need to cut regulation, cut burdensome and overly complicated taxes, and stop meddling in every corner of the economy? Put me in the latter camp.
And as always, weigh in at the website here to add your own thoughts.
| OTHER DEVELOPMENTS OF THE DAY |
 Coca-Cola (KO, Weiss Ratings: B) continued its attempt to diversify away from its namesake cola and other related beverages, buying a 17 percent position in Monster Beverage (MNST, Weiss Ratings: B+) for $2.2 billion.
Coke will transfer select energy drinks to Monster, which will ship natural sodas, juices, and teas its way. The move will expand distribution of energy beverages, and it follows Coke’s move to buy 16 percent of Keurig Green Mountain (GMCR, Weiss Ratings: B+) a few months ago.
It’s also where current Chairman Janet Yellen will give a keynote speech next Friday. How she characterizes the recent data on the jobs market will almost certainly impact stock, bond, and currency markets one way or the other.
Meanwhile, industrial production rose 0.4 percent in July after an upwardly revised 0.4 percent in June. Capacity utilization climbed to 79.2 percent from 79.1 percent, putting it at the highest level since 2006. Producer prices also rose 0.1 percent in July, with the “core” rate that excludes food and energy gaining 0.2 percent for the second month in a row.
Reminder: You can let me know what you think by putting your comments here.
Until next time,
Mike Larson
P.S. Wealthy investors are surprisingly picky about the companies they invest in — demanding the very best in order to preserve their capital and make it grow. Simply put: They have patience. Would you like to know what else separates them from average investors? Then click here for Bill Hall’s FREE report.
Mike Larson graduated from Boston University with a B.S. degree in Journalism and a B.A. degree in English in 1998, and went to work for Bankrate.com. There, he learned the mortgage and interest rates markets inside and out. Mike then joined Weiss Research in 2001. He is the editor of Safe Money Report. He is often quoted by the Washington Post, Reuters, Dow Jones Newswires, Orlando Sentinel, Palm Beach Post and Sun-Sentinel, and he has appeared on CNN, Bloomberg Television and CNBC.
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It would be really nice if Coke (& Pepsi & Lipton) would eliminate HFCS from all their products. Sugar is bad enough. HFCS is worse.
Maybe we are wising up and Coke is branching out to other drinks????
LARRY’S “CYCLES OF WAR” & GLD (GOLD)
Larry Ellison is right, the “cycles of war” (and conflicts) just ramped-up another notch today. The markets are becoming erratic with both “risk-on” ( NASDAQ) up and “risk-off” (10- year Treasuries ) up at the very same time!! Better buy some gold (GLD) soon to hedge your bond positions at 1:10 ratio and rebalance annually.
Good luck and sleep tight! No gunfire around here for us at this time, unless you live in a place like St. Louis, MO. Larry has repeatedly warned readers here that the “cycles of war” are global, AND domestic here at home. No way to hide on a hot August Night. It will just get louder and louder in the next 7 years. So, be prepared, as we definitely live in “interesting times”.
Non-Americans who snowbird or otherwise visit the US on a relatively frequent basis look for “Wal-Martians” when they visit Walmarts for the purpose of taking pictures of gross looking people. Then these pictures go viral on the web. I like many other Americans avoid Walmart at all costs.
Quote: the first time we’ve seen independent confirmation from non-aligned, non-partisan observers. I would find it difficult to believe that the British Government is unbiased after having watched David Cameron speak on British TV in relation to this matter.
Quote: Up until now, the battle has involved Ukraine’s uniformed soldiers and shadowy rebel combatants only surreptitiously backed by Russia. Tell this to the 100,000’s of Ukraine residents who have had their homes blown up by Ukraine Militaria 110 orphaned children who were killed when the orphanage was destroyed, villagers who have lost everything.
Get real and wake up to what is going on in the Ukraine at the hands of the Ukraine Government backed by the EU and the West. Better still watch KM.RU and get the real story and stop watching the sanitised news aired by US television and do not listen to press conferences run by the US State Department.
The entire political system is broke and has plunged out mighty nation into poverty! Our standing among the other nations is at its lowest ever and sinking. The USA has become a bully to ALL the other nations and to the entire global trading system. And the USA is the only nation imposing fines and confiscation if foreign accounts by the IRS. I served this nation and was proud of being a citizen but now I am becoming more and more outraged by its actions inside our borders and outside our borders. Our leaders have trashed the constitution! As always I am hopeful that things will turn round for the better but it sure does not look like that will happen as Washington’s greed and graft increases.
Regarding Wal-Mart, why not let their management decide what wages will be? The market will force the corrections.
This is the second time in a week you have referred to charges levied against Russia which Russia staunchly denies to be factual, and that we have seen not a scintilla of evidence for – no verifiable photos, satellite images, or intel. Robert Parry has been reporting on Ukraine for weeks, and he has reliable sources in the CIA. US intel analysts do not corroborate ANY of Poroshenko’s apparent lies. All of this amounts to propaganda by a US government salivating to go to war with Russia to protect the petrodollar. Let’s look at the timing: The US sponsors the overthrow of a democratically elected government in Kiev by neo-nazi thugs while Putin is engaged with the very successful Russian Olympic Games. Russia puts forward peace proposals and suddenly is blamed for the downing of a commercial jet. (Russia had nothing to do with it, which has now been proven and is the reason the White House stopped talking about it); Then Russia sends a humanitarian relief convoy into Ukraine and suddenly there are reports of military convoys entering separately. Then Poroshenko further makes the preposterous claim that his loyal troops “destroyed” the Russian convoy. Of course they present no evidence of this – or a single photo. Get a grip on yourself and start reading some impartial independent media on Russian issues. The demonization of Putin hit US press mere hours after the plane crashed and no investigation had even begun. I have access to the evidence of Kiev’s guilt in this matter if you care to see it. At this White House, Russia is not permitted to be viewed as fair, honest or non-aggressive. It does not suit their war agenda.
Congratulations Linda I have found another person in this confused world that can see the truth as to what is going on in the Ukraine. It is all about control of the world and in particular the interest the US has in controlling the Black Sea. I would love to read the documentation you have on the downing of flight MH17 I to do not support the theory that is was brought down by Russia as you say there is far more at stake here than people wish to acknowledge Shortly after the crash Russia released their satellite image data that was taken during the downing of the aircraft and it shows a totally different scenario as to what is being released by the Ukraine Government. It is strange that at the time of the crash it has been alleged that the US Government had a satellite flying over the immediate area and yet the world has seen nothing of that. Furthermore the stupidity of the world placing sanctions on Russia is only hurting the citizens of Europe who have lost $euro millions in trade with Russia.
Both of you (Graeme and Linda) have lost your bearings. Unless either of you actually live in Ukraine (as I do), then you are wasting your brain cells reading and engulfing any news sources. As a former US military analyst, I can assure you, that your news is limited in scope and quality. Remember, newspapers, journals, etc, are written so that you will purchase their products. Anyway, about a month ago, I added my 2 cents to this web blog and predicted that Putin would continue on his course and added to be prepared for the markets to skid. I maintain that estimation and therefore give all fair warning. The DAX dropped 200 points on Friday within a few hours. Use that objectivity to think about your conspiracies, rather than subjective journalism.
Europe needs to wise up to one simple fact. Their plan to force their economy onto renewable energy, requires more capital, than their economy is capable of producing. Thus, imposing carbon controls is creating poverty and dependence on foreign energy supplies, exactly the opposite of what Europe thought would happen. Regardless of whether Russian billionaires with ties to Moscow, or Ukrainian billionaires with ties to Kyiv, supply Europe’s energy needs, Europe will make itself poor, and dependent upon somebody, because it cannot swallow it’s hubris and admit that the Kyoto Protocol was a dumb idea. The fighting in Ukraine serves only one need for Europe. It provides a scapegoat upon whose head, all the failings of the E.U. Environmental Programme may be placed. Had Ukraine’s population not began feuding like the Hatfields and McCoys, politicians there, would have found some other excuse on which to blame the growing poverty.
I recently bought a new pair of eyeglasses at Walmart. they had frame style I liked better than at other places I tried, and for about the same price, and I got very good service. But I’ve essentially given up on them for most things. They seldom have food my pet likes, for example and it’s frequently on sale for a better price at a regional supermarket chain owned by Ahold. And when my old TV gave up a couple of years ago I did find one I liked at the local Walmart, but it was out of stock and they wouldn’t make any promises. I went home and ordered it from Amazon for a lower price with free shipping and no sales tax.
Putin is determined to prevent Ukrane to become a NATO country. That is clear. He is testing the ground that how far he can go without causing an all out war. He believes that the West would not risk the war to protect Ukrane. That is also clear. I believe that Putin will get what he wants. Once the power is balanced, peace will come. Putin will not do anything more than just keeping NATO out.
I BELIEVE THE MEDIA SHOULD BE MORE ACCURATE IN ITS REPORTING ON THE UKRAINE . REMEMBER WE MEDDLED IN THE AFFAIRS BY OUR EFFORT TO BRING THE UKRAINE TO THE WEST AND ECOURAGED THE REMOVAL OF THE PRESIDENT WHICH HAD RECEIVED THE VOTES OF EASTERN UKRAINE . WE HAD ASSURED THE RUSSIANS IN EXCHANGE FOR THEIR REMOVAL OF TROOPS FROM EASTERN EUROPE THAT WE WOULD NOT MOVE NATO EAST . WE MOVED NATO EAST . NOW WHAT DO YOU SUPPOSE THE RUSSIANS REACTION WOULD BE ? WHY DO SUPPOS RE- SECURING CRIMEA AND THEIR WARM SEAPORT MEANT . RUSSIA DOES WHAT AMERICA DOES. IT LOOKS OUT FOR THEIR OWN INTERESTS. IF WE BACK OFF ,THEY WILL BACK OFF.
I agree with Daniel here. Why was the elected president of Ukraine overthrown when he stood up to tell the US and EU he would not take Ukraine into the EU? What if this whole crisis is the FED’s and ECB’s reaction to the New Development Bank and the emerging Eurasian Union. I smell the rat of competing banking systems with irreconcilable idealolgical differences. Not that some mutual cooperation wouldn’t transform the world into a far better place, but someone is trying to control the world here regardless of cost and this time it’s not the East.
Shiva you are on the right track. Ron Paul USA admitted that the USA had spent in excess of $US 5 billion in an attempt to destabilise the Ukraine Government. It started back in 1991 and as you say it was to get rid of a president that was not sympathetic to the USA and they kept going until they succeeded with the current puppet government. The main crunch started last November with the demonstrations in Kiev which eventually ended up to what it is now. The first ruse used was that Ukraine should join the EU and there would be plenty of money and plenty of jobs. The original protesters it is alleged were paid by the US Government $US20 per day to protest and this was the fuel needed to get the unrest started. By the way my wife was able to confirm this payment as she was visiting the Ukraine in the early stages of this destabilization during train journeys throughout Ukraine and speaking to some of the protesters. So now we are left with all out war in Ukraine and killing their own people.
Hi Graeme,I wonder if someone from the GOV.,would ever admit spending $1 to destabilise any country.Its just more lies on lies.I just don’t get it.You have to question everything with the true facts which you will never get.I just wish all politicions were REAL men with honour,is that too much?
Really, enough of the Putin phobia. After the line of proven falsehoods from the Keive faction and the Right Sector military gone rouge and terrorizing the MP’s and cabinet officials it just may be time to look from the Russian side. Our own mainstream press has bought into everything this administration has thrown their way for the past five years and will continue to for the next couple of years. Our own administration has not been a tower of truth to us on many, many occasions. The president get to pick and choose who get saved, who gets humanitarian aid, who is good or bad and the world is expected to follow or gets credit and loans cancelled (there use to be a term used for that) .It has been a long time since the “wall came down” and it sure isn’t the country I where I grew up. THEIR “propaganda” can be found on RT.com and Itar-Tass.en.com; very different from CNN, MSNBC, and now even FOX. Western reporters checked the trucks–and found aid. Armored column destroyed? Three days and still no photos from the reporters except
the file photos taken IN RUSSIA. Should have been a real scoop for them or maybe their iphone stopped working. Just my opinion from one pissed off old gezzer.
The thing people need to realise is that the possibility of WWIII is very small. The Russian/Ukraine dispute is a proxy fight like the Spanish Civil War. Both Obama and Putin are playing poker while people are getting killed and lives being destroyed.
I no longer trust government data. We all know the employment and inflation reported numbers are not accurate, so why believe government reports. How can this economy be growing with half the population not working or paying income taxes. 40% on food stamps and those just giving up looking for jobs not even counted as unemployed.
maybe coke cola should put sugar back in their soda. other countries will not allow coke to have corn syrup. they see the harm. their not sleeping with our corporations like our gov. i find it amazing that the public is not boycotting any soda company these days with the insertion of corn syrup like they did in the 80’s when coke went to NEW COKE. i guess it’s a sign of the times where more is excepted. if i’m going down i want the real thing.
Not only is corn syrup bad for you as 90% of the corn grown in North America is GMO with the Roundup trait. Almost all of the sugar beets grown are Roundup ready which goes into sugar. Even the cane sugar from South America and Guatemala is sprayed with Monsanto’s Roundup to kill the the plants so the leaves fall off to make it easier to harvest. Roundup is being allowed to be used because it is affecting the conception in livestock and will end up controlling the world’s population.
We have two reasons for building empires.. The USA has been building an Empire since Teddy Roosevelt’s fight in San Juan and today we are the police men of the world. Energy is the second reason that the USA is at another cold war that is getting hotter this week. Putin has the same goals of expanding Russia’s Empire plus energy. Most wars that have been fought are over the control of oil and people.
My comment is that Mr. Putin is known to be a worshiper of force. He is also well known to be a man who wishes to rebuild the Soviet-Russian empire. So, should the Ukrainians attack a Russian armed force, this could easily be the pretext for him to reduce the Ukraine to a Russian possession. But of course, he would run athwart the United States if he did, and the only thing that could discourage him would be Mr. Obama’s making it clear that such would be an act of war. It is my opinion that Mr. Putin does not respect Mr. Obama, probably considering him “soft”. . He could very easily be wrong here. So, probably, the prudent investor will buy gold.
And you know this about Putin because……….? There is an excellent two part documentary on Putin produced by a Russian filmmaker. I urge you to watch it.
Putin for the most part, is aware of what he is doing, the US is not aware of the consequences of its actions.
Russia is already been forced to Change, War or no War.
If anyone thinks that Putin will back down, they are stupid.
Stupidity starts Wars, somehow the Euro’s and the Americans think that it could not happen.
A portion of the UKRAINE will become Russian territory, as it is already Russian.
The US believes that what they are doing is necessary for power, what they are doing is necessary for War, between Russia and parts of the West.
China will probably be forced to join, or if possible not join and become the dominant Nation after War. Either Way, the West – Europe the US, as well as Russia Lose.
I learned in grade school, as I went to a new School nearly every year, the only way to deal with bullies is to either fight or scare them, I have used both.
As I got older, I could scared them. They never ever, crossed my path again.
WALMART MUST MESH TOGETHER VARIOUS GROUPS INCLUDING EMPLOYEES, STOCKHOLDERS AND SHOPPERS OVER A VERY LARGE PART OF THE WORLD.
THAT IS A FORMIDABLE TASK. EACH ITEM IMPACTS THE OTHER PARTS OF
THE PUZZLE. ONE MUST LOOK AT THEIR CONCEPT AND REALIZE THAT MANAGEMENT, FOR ALL OF ITS FAULTS, DO A PRETTY GOOD JOB.
I HAVE SOLD MY WALMART STOCK AND AM WAITING THE RIGHT TIME TO BUY.
IT MAY BE A LONG WAIT.
My husband grew up in Benton, Illinois and his father knew Sam Walton well. When one of your readers said that Sam Walton would be turning in his grave, she wasn’t kidding! He was very good to his employees and paid a fair wage. He tried to provide as many products made in the USA as possible. When his children took over the business, their only goal was to make as much money as they could. I don’t have any problem with a company making a profit, but not at the expense of their employees and customers. I try to shop at locally owned businesses and, with few exceptions, stay as far away from Walmart and Sam’s Cub as possible!
There is an article published this week on the Aljazeera web site that provides some perspective on the battle over control of shale oil and gas deposits in eastern Ukraine.
about 1986 I told my friends ” I see the Iron curtain will come down ” I based that on some history books that had been written 80 years prior . The whole thing came from the Idea that Europe was trying to form a union , I got that idea from a book about the european common market and it’s trade barriers thru societies anonomous , in other words the individual countries could block an import item for what ever reason and not have to divulge which country was the responsible culprit thus avoiding retribution in overseas tarrifs. cute huh! well Germany was still unable to carry the heavy load it now does in its divided state, that was just one of the pressures but beside that I wondered what would become of the buffer that the cold war provided against the rising of radical states and their acompaning religion namely the long dormant musselman! Now I know ,but the instability amoung the worlds nations is increasing with the US trying to fill the gap I guess when the cost to do all this policing gets beyond what can be collected from all the countries that support the idea that the world needs a powerful leader to keep everyone in line just look at ttip and the tfta and their efforts to tax the world ,not to mention the sanctions placed on russia, argintina , venezuela cuba the list goes on ! a pure commercial political allianze , what was that mussilini called that ? but where is the eu on all this ? playing nice nice to russia for fear of getting the energy turned down if not off and wow that would really hurt eh! Then we will see america pull back in internal chaos and economic collapse from sovereign debt spent on their miss informed attempt to own the world the world especially the EU will resume their original master game plan but by then they will be to embroiled in the ressumtion of the defense of vienna from the soliman to come ! But that all was just me wondering what if the wall did fall!
” Stephen Cohen, Professor Emeritus at Princeton, one of the foremost experts on Russia in the US, “The seemingly unthinkable becomes imaginable, – an actual war between the US and post-Soviet Russia.” Just to note, Professor Cohen thus pointed to the risk that this could easily escalate to use of nuclear weapons.
Western media is subservient to the financial interests trying to bring the confrontation about. He cites the Trans-Atlantic financial system under the control of the City of London and Wall Street which currently has 2 quadrillion dollars in financial aggregate outstanding. “Don’t ask me how many zeros that is. It will take too long to tell.”
He calls the structure “a speculative bubble” that is getting completely out of hand. It once exploded in 2008, he says, and what has been done since then has done nothing to solve it, and has only “made it worse.”
To try to maintain that bubble they [those behind the “bubble”] believe it’s absolutely necessary to stop any part of the world that’s developing economically under a different system, thus choosing to target Russia and China. “They have stated very clearly that they are prepared if necessary to take this to the point of nuclear confrontation, to try to get that kind of back down.” The strategic policy is most surely dictated by “the owners of this 2 quadrillion dollar speculative bubble that they praise more than anything else in the world.”
It seems that links are not permitted in the comment sections, so I cannot direct readers to the source.
The solution to raise minimum wage without raising costs is simple. Get rid of the overpriced CEOs and CFOs for any company that doesn’t need them (which is at least 95%) and replace them with a single accountant and pay that person a competitive wage, Then spread the money saved to rest of the workers. For companies like Apple and Intel etc, there are new products released every quarter which may make or break that company. Their CEOs should be paid a lot if they succeed. For companies in the insurance and banking industries, there hasn’t been a single new innovation in the last 50 years, except for the ATM, which was created by a computer company. The new CEO of McDonalds gets paid somewhere around $20M and last year McDs introduced a new salad. You don’t need an MBA to do that. That sort of decision could be made by any average store employee. Only a tiny percentage of CEOs can justify their salary. The rest should be embarrassed.
Re: Walmart is the perfect example of the modern corp. Maximize short-term profits and growth above all else. Profit always before people and that includes customers. We have a Malwart store that opened about a 10 minute walk from my front door. Many in the county fought but once the 2010 elections gave a republican majority on the county commissioners approval came quickly. So how after a year does a huge new store look so junky and cluttered? I avoid going there but you know you need stuff and it so close. “Convenience” the watch word for many Americans, the source of so much foreign and domestic, that has led to poor consequences for us all.
Re: Russia and Ukraine appear to be headed for an all out war. It goes step-by-step by stupid step-by-step. It seems to me order and stability are too easily lost, destruction too attractive for humans to avoid to gain the hoped for short-term benefits as noted regarding Walmart. 100 years since the beginning of ww1 and it looks as if some would like to repeat the experience. Presently there is no easy/face-saving exit for either party. The momentum of their unconscious desire for self-destruction is likely to continue the escalation of fighting. What is and will be our response? Better check on granddad’s old fallout shelter. You do remember that there are thousands of nuclear warheads aimed our way!
I’ve read several of the critical comments regarding Wal-Mart. Some of the observations are correct, but I believe they aren’t seeing the real problem. The real problem is the clientele. Most of the criticism has been leveled at customer service, but again, I contend it is the clientele. The overall clientele of Wal-Mart has decreased in manners, public appearance, and general decorum. If you had to work in customer service dealing with a preponderance of people on assistance who were surly, and thought it your fault that the problem they’re having with the product, you would be short also. Yes, going to Target will solve the problem of being in line with people using assistance cards, with tatoos over 40% of their bodies and needing immunization shots to be in the public square and that will work for many. Again, the clientele isn’t what it is because of low wages, it is because of the Federal government’s policies.
DDear Mike: In my view Putin will do everything possible to arm the rebels. I believe he will raise the price of natural gas to Europe. He cannot afford to cut off NG. NG his one of their biggest sources of income. AS you know our ability to export natural gas is severally limited because we have only one facility in Alaska. The facility being built in the Sapine pass in LA will not be ready for another three or four years. Regards, Robert Calabro.
This is a tale of economic and moral folly. The Fed only helps the elite.