Wednesday Australian businesses are burdened by regulations (useless ingredients), taxation, litigation and debt. All are increasing. Change is a constant; the speed and scope of change is not. The marketplace is now changing dramatically – and quickly. It is not small business operators that are at most threat, it is the corporations. Small … [Read more...]
Zombieland
Wednesday Central bank bluster notwithstanding, interest rates will continue to trend downward. It can be no other way. The servicing of sovereign zombie debts insists that interest rates don’t rise. And then there are the zombie debts and zombie jobs of the zombie corporations that facilitate employees taking on their own zombie loans. The aggregate of all that is what … [Read more...]
All is Well – Until it Isn’t
Saturday The national debt is too large to sustain any meaningful increase in interest rates. It’s all talk. Thus, it makes sense for corporations to continue borrowing to fund share buy backs and dividends. Borrowing funds at low interest rates in order to declare a dividend is a peculiar phenomenon that definitely falls into the category of ‘perverse incentives create … [Read more...]