GRAB YOUR PITCHFORKS!
On Wednesday, Stiglitz pointed out that 91 percent of economic gains made since the 2008 recession went to the top one percent of earners, while the minimum wage has failed to keep up with the pace of inflation by more than 60 years.
"The American economy is a failed economy," he said. "We have to once again rewrite the rules of the economy for the 21st century." - Common Dreams
Stiglitz: Anger Over 'Failed Economy' is Shaping US Election
Inequality is shaping the 2016 U.S. presidential election, as voters disillusioned by the financial crisis and Wall Street greed increasingly turn to populist candidates like Bernie Sanders, who has made economic inequality a central platform of his campaign, Nobel Prize-winning economist Joseph Stiglitz said on Wednesday.
"There are a lot of people that are described as angry and they finally figured out that they’re not doing very well," Bloomberg reports Stiglitz as saying during an event at the Resolution Foundation, a London-based research group. "They’re not doing as well as their parents; some Americans aren’t doing as well as their grandparents.
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Solar City seems poised to continue that aggressive trend of improvement in solar power. The company is in the process of building an enormous $750 million factory in Buffalo, NY that will produce 10,000 solar panels per day, or one gigawatt of power generation capacity per year. Once completed, the plant will be the largest in North America, and one of the biggest in the world. It’s hard to overstate the potential importance of this factory. If done right, the plant could catapult America to be one of the leaders in solar power in the future in the same way that the Rouge River plant made Ford Motor Company one of the world’s leading auto manufacturers.
“Anytime when you’re relying solely on one thing to happen to keep the market going is a dangerous situation,” said Andrew Hopkins, director of equity research at Wilmington Trust Co., which oversees about $70 billion. “Over time, you come to the realization, ‘Look, these companies can’t grow. Borrowing money to buy back stocks is going to come to an end.”
“The Russian intervention turned the tide in Assad’s favor and allowed the Kremlin to cut a favorable deal with the West,” Matthew Rojansky, director of the Kennan Center, told Quartz. “Putin can always order the troops back into Syria—in a single dramatic gesture or gradually—in response to an alleged breach of the deal by the West or its allies.”
The Importance Of The Collapse In Valeant's Stock
"Shucks - who me? Why should I know?"
Summary
Valeant has begun to come clean about its delicate financial state.
This has finally led to a huge decline in its stock.
Last October, with the stock near $100, I said that its fair value was below $10 even if management was completely honest.
While Valeant might be sinking to that level sooner or later, there are broader implications of this situation.
This article explores those implications and argues that the overall stock market deserves a lower P/E multiple.
Background
Valeant Pharmaceuticals (NYSE:VRX) is a debt-heavy company. It has been formed out of almost numberless small and large mergers and acquisitions. The acquisitions have been of companies as well as of specific products or product lines. Because whatever good profit centers Valeant or its merger partner from 2010 Biovail had have become small in relation to VRX's more massive size, the debt characteristics of VRX have dominated its financial status.
READ MORE
Valeant has begun to come clean about its delicate financial state.
This has finally led to a huge decline in its stock.
Last October, with the stock near $100, I said that its fair value was below $10 even if management was completely honest.
While Valeant might be sinking to that level sooner or later, there are broader implications of this situation.
This article explores those implications and argues that the overall stock market deserves a lower P/E multiple.
Background
Valeant Pharmaceuticals (NYSE:VRX) is a debt-heavy company. It has been formed out of almost numberless small and large mergers and acquisitions. The acquisitions have been of companies as well as of specific products or product lines. Because whatever good profit centers Valeant or its merger partner from 2010 Biovail had have become small in relation to VRX's more massive size, the debt characteristics of VRX have dominated its financial status.
READ MORE
