Vehicle discounts increased in December of 2016 to increase auto sales to yet, another record year! Demand for cars has fallen because the auto bubble is deflating and it took a decrease in vehicle prices to bring people into dealerships. How much longer will this go on? The auto loan bubble will be fully pricked by the time the next economic crisis is here and we seem to be very close to that. Also, companies like Cadillac are offering a new program where you pay a $1,500 subscription and you can drive any top of the line Cadillac car you want. There is no contract, just a $1,500 a month subscription. This new program will begin to roll out on February 1st, 2017 in New York City. Is this the future of the car industry? What’s coming next?
Donald Trump is 10 days away from being sworn in as the 45th President of the United States so we have to ask ourselves what will a Trump presidency look like? The way Trump is on twitter all the time saying he will put tariffs on a company that sends jobs overseas is rather concerning. It’s going to be an interesting 4 years of the Donald and I don’t think they will be good for liberty at all.
Thomas Sowell wrote his last column on December 28th and he decided to give it up after about 40 years of doing it! Sowell has had a huge impact the economic world because of the amazing books he has written over the years! He’s an extremely gifted writer who writes very clearly, concisely and is just a brilliant mind. A few points he makes in his last few columns are discussed to pay tribute to an incredible mind that has done lots of work defending the free market and making the moral case for capitalism!
Who do you think is the biggest political loser in 2016? I would argue the biggest, political loser in modern American history is Hillary Clinton! Hillary Clinton has always been seen as the inevitable first woman president but that no longer seems probable at all! Also, a woman in France is literally engaged to a Robot and she plans on marrying this thing when it’s legalized! This world is literally insane and I think things will only get more insane in 2017!
No one was shocked by the FEDs recent decision to raise interest rates to .5-.75%. The FED has raised interest rates a total sum of .5% in 10 years! That’s not much of a move but the markets think the FED is being very hawkish right now with the dollar hitting a 14 year high! During the campaign, Trump stressed to people how he will make America great again but really it’s an impossibility. The only way for things to turn around is if the government shrinks and the free market is allowed to prevail! Trumps natural instincts is to fix things with government. The markets wishful thinking in regards to a Trump presidency are vastly overblown and will crash back to reality rather soon.