Economics Log by Peter Lutrario

02/08/2023

Sale 2 for $6. Medium grapefruit

06/02/2022

No one wants to be stuck in a world of permanent QE where the Fed is the financial system, the lender and buyer of both first and last resort. You sometimes worry that if we don't pass the baton back to the banks and the private sector now, it won't even be there in the future.

06/02/2022

One potential advantage of the Amazon and Alphabet splits is that they could make the shares more realistic additions to the Dow Jones Industrial Average. ​​Adding high-price shares to the Dow is problematic because the index is weighted according to price, so the same percentage change in a high-price stock moves the index more than for a low-price one. Adding a stock with a price in the four-digit range would instantly give it the most influence in the index.

The splits cure that problem, but it is also worth remembering that changes in Dow components occur infrequently.

06/02/2022

Investors love stock splits because they provide the illusion of getting something for nothing, although logically, they shouldn’t really matter. Cutting a 16-inch pizza into 16 slices rather than eight doesn’t create more food.

But splits hint at underlying financial success, suggesting a stock has gotten so high that the price needs to be made more accessible to allow small investors to buy. And at least initially, they tend to boost share prices.

Monday will be the first trading day following a 20-for-1 split in Amazon.com shares that the company announced on March 9.

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06/01/2022

John Hinckley, the would-be assassin of President Ronald Reagan, will receive an unconditional release from prison, a federal judge has confirmed.

06/01/2022

Life is tough and it's tough whether you're famous or not famous. And in the end it's probably better to be famous because the perks are better. You get better seats at the basketball game, and you get better tables and reservations places. If You call a doctor on Saturday morning You can get him. There's a lot of things, indulgences that you don't get, if you're not famous. Now I'm not saying it's fair. But I can't say that I don't enjoy it.

06/01/2022

Another clown who says he called the crash ( after the fact)

"A brief downturn is entirely possible as the market adjusts to the plunge in demand and inventory spikes higher," Ian Shepherdson said.

06/01/2022

Meta announced Tuesday that it will change its stock ticker symbol to “META” prior to market open on June 9.

05/31/2022

05/31/2022

https://www.cnbc.com/2022/05/31/china-faces-a-nearly-1-trillion-funding-gap-it-will-need-more-debt-to-fill-it.html?utm_source=facebook&utm_medium=news_tab&fs=e&s=cl

The Chinese government faces a growing shortfall of cash, analysts say, as they predict an increase of debt to fill the gap.

05/30/2022

I’m an agnostic but I really want to believe there is a god,but after this crime I don’t know. If only God would give me some clear sign! Like making a large deposit in my name in a Swiss bank.

Someone apparently armed with a power saw broke into the church and walked off with the solid-gold, bejeweled tabernacle, the police said.