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Over 4 million Italians are preparing to get back to work after 8 weeks in lockdown. Yet they face a major dilemma. How do you get back to work when schools and daycare centers are closed till the fall? They have to first figure out who will look after the children. Starting May 4, manufacturing and building businesses will reopen if following social distancing guidelines. Followed by shops, and public venues on May 18, and restaurants hairdressers on June 1. Other countries will be looking at how the reopening is tackled in Italy, and the problem of who takes care of children will also come up in the U.S. and other countries also. Grandparents were widely accepted as a solution for childcare in Italy. Yet this raises many questions about the safety of the grandparents and increases anxiety for the parents. The Italian government is providing financial aid to families for babysitting and more parental leave but this does not cover the costs. As they tackle this problem parents face additional stress and anxiety. ...

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The system of using performance evaluations for "forced" or "stack" ranking of employees started with Jack Welch at General Electric. Microsoft adopted the system under Ballmer till 2013, when it decided that the need for teamwork was more important and discontinued the practice. Welch used it to get rid of "underperformers" or managers who did not conform to his requirements when he became CEO of General Electric. It was his personal style and way of bringing change to GE. The practice of "forced" ranking increases competition inside the company instead of teamwork, say managers, and leaves a lot to the caprice of individual managers. In December 2013 Ballmer facing criticism from his Board for missing some of the disruptive technologies in the information tech business and falling behind Apple and Google, sought the advice of Alan Mulally of Ford Motor Company. Mulally had to fight entrenched Japanese competitors and pull Ford out of a crisis in which even Ford's logo had been put up as collateral for loans. Meeting for 4 hours on Mercer Island in Seattle Mulally told Ballmer that he focussed on teamwork and simplifying the way Ford did things. Ballmer phased out the "forced" ranking system as one of the last major steps before he leaves Microsoft. In today's environment for tech companies of intense competition worldwide and disruptive technologies without teamwork and employees looking to come up with new and exciting products the future is surely lost. Having the "bottom" 50% of the employees compete for limited positions can be dangerous or suicidal without the dominant position in markets that GE and Microsoft had. It also makes no sense to substitute internal competition and capricious manager behaviours for teamwork. It is the responsibility of managers to do as much as possible to make good hiring decisions, and then motivate and help employees to achieve their best performance with frequent helpful feedback, and to promote teamwork. This is the lesson Ford learned through its crisis and Microsoft is now learning....

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Apple's new upgraded operating system makes a change this fall which finally gives users the right to opt out of web tracking activity by apps. It will ask users if they want their web activity tracked. All users of apps have to do is to click No. 

This change implemented by Apple gives users the privacy they need without a constant barrage of ads based on web tracking activity. After the pandemic quieter times are needed for people to think about the essential things that add joy in their lives without the constant disruptive effect of ads. It has become so ubiquitous that people have lost memory that this was not always the way previous generations lived. For people under 20 they have never known anything different.

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The slowing job market without layoffs and yet robust, is giving new flexibility ot the US central bank, the Fed. Jerry Powell at Fed does not plan to cut rates and will keep rates steady. This mean housing affordability is affected though the problems in housing have to do with a lack of supply and factors such as retired people hanging on to larger homes and not downsizing. Overall this is a period of robust job growth and moderating inflation, and is a result of the huge investments Biden and Congress in bipartisan way are making to provide industry support to compete with China and in infrastructure investments that yield benefits for overall economic growth and productivity. This is true for investments in science and CHIPS Act.

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Fisher and Taub in NYT give a brief history of Venezuelan politics and government since the 1950's to help readers understand today's economic and political crisis under president Maduro. How did a country with huge oil resources end up with depleted cash reserves to the point of creating shortages of basic goods on supermarket shelves, how did inflation reach over 700%, and how did the economy contract by over 10%, by some estimates close to 20%, in 2016? Venezuela's story is a reminder that populist movements do not hold the answer to political or economic problems, as they create corruption of their own as new groups of people try to perpetuate themselves in power, and new economic problems as they try to win favor with their own support base. Also through economic mismanagement worsened by economic changes such as oil prices or some other adverse development in the global economy. Internal divisions means the capacity of the country to respond is weakened. Brazil has shown the problems of corruption with new political groups and the weakening of government finances. Venezuela is the extreme example of how a lot can go wrong over time after the initial response to a new populist group is positive as it was in Venezuela in 1998, even with advantage of rich natural resources. Change that fragments a country and polarizes a country instead of pulling together the country's human talent around a program that all groups agree to support, is a signal of future problems. The rule of law is an essential component not just of democracy, but of economic development and progress of any country. These are the lessons of Venezuela for today. Economic crises in the eighties led to loss of public confidence in the two main political parties which alternated in power since the founding of democracy in 1958. In 1998 a military officer named Chavez won the election on the platform of returning power to the people and reducing corruption. Chavez reforms initially were popular. Popular protests in 2002 led to the military briefly taking power before returning power back to Chavez. This led to Chavez moving further towards consolidating power leading to a polarization of society. The oil company workers who went on strike were fired replaced by Chavez supporters and oil funds were diverted to popular programs. In the process Chavez isolated Venezuela from the world economy, leading to lack of foreign investment, and Venezuela falling behind other countries in Latin America, even though it had large oil resources. To retain control of the streets this report shows Chavez helped organize the colectivos or local supporters organized as vigilante groups, which has led to further polarization. Corruption in the military and with the colectivos has led to power being fragmented between different groups. The oil companies fund reserves were depleted by corruption depriving Venezuela of an essential cushion as oil prices dropped. Chavez died of health problems with Maduro winning the election in April 2013 by 50.6% of the vote. The parliamentary elections led to the opposition parties winning by a landslide in December 2015. The current problems with daily street protests stems from the economic crisis, with inflation as high as 700% and shortages of basic goods, the economy declining by over 10% in 2016. The uncontrolled printing of money has fueled rampant inflation.The efforts by president Maduro to nullify the powers of Congress in an effort to control the country and override Congress, has worsened the discontent with the government.   ...

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Glen Hubbard, who was Chairman of the Council of Economic Advisors under President George W. Bush and is now Dean of Columbia University Business School, Hal Scott professor of International Fiancial Systems at Harvard Law School, and Luigi Zingales professor of finance at the University of Chicago Booth School of Business, say a different plan of action is needed from what the Obama administration is doing to tackle the banking crisis. They are really skeptical about the the Public Private Investment Program and other plans put forth upto now for several reasons. First, in every case they say there is a lot of carrot but very little stick, and this won't work. TARP program was mostly carrot, with Treasury getting back securities worth $78 billion less than the $254 billion invested, as pointed out by the Congressional Oversight Panel.The FDIC's guarantee of short term debt was worth $100 billion just for the original nine TARP participating banks, and the mortgage related asset guarantees offered Citibank and Bank of America were worth tens of billions. They see anew round of TARP injections with the conversion of the government's preferred stock into equity after release of the stress test results. Then there is PPIP the Public Private Investment Program, and its plans to subsidize the purchase of bank's"toxic assets" by hedge funds and other investors. They estimate the government will spend $2 for every $1 the private sector puts up. And even with this subsidy their thinking is that the probability of succes is low for the same reason that has prevailed since the earlier efforts by Treasury Secretary Paulson- there is just too big a gap between the bid and ask prices on the toxic assets, and add to that the reluctance of investors to partner with the government. Its time for more stick say these experts as the problem of toxic assets, and of credit and lending in the economy, will hang like a large shadow over the economy, as long as these tough problems are not wrestled with. This is the Hubbard-Scott-Luigi Plan: 1) The FDIC should announce that its guarantees of short term debt set to expire in October will not be renewed. Insolvent banks, defined not by stress tests but as those that cannot fund themselves in the private market, will be taken over by the FDIC under aclear and credible action plan. 2) The FDIC lacks the resources to run several large and complex banks which may become insolvent. And waving the idea of nationalization the creditors may try to get the government to bail them out. The authors of this plan say the FDIC should solit each bank into a "bad bank" and a "good bank." The "bad bank" would carry all the residential and commercial real estate loans and securitized mortgages as assets, and all the long term debt as liabilities. THe "bad bank" would obtain along term laon from the good bank to fund the assets of the bad bank. Al the remaining assets including the derivative contracts and the loan to the bad bank would be assets of the good bank. It would also have all the insured deposits and the FDIC guaranteed short term debt as liabilities. With the split accomplished the good bank can be released from FDIC receivership. 3) The long term debt holders would be compensated by receiving all the equity of the good bank. The old shareholders would get the equity in the bad bank. And in any restructuring bondholders should do better than equity holders. If banks are not really insolvent as some say and just facing temporary dislocations, then the bad bank will eventually surge in value, and the equity holders will do alright, and if not they will receive nothing as they should. 4) For this to work legislation needs to take effect before October for FDIC procedures for handling failed banks to be also applicable to bank holding companies. And this new legislation puts no new cost on the taxpayer....

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The corporate share buybacks announced by U.S. companies in the last 3 months now exceed $200 billion, more than double than in 2017, according to a WSJ analysis. This includes Cisco, Wells Fargo, AbbVie, Amgen, Alphabet (Google). The surge in corporate buybacks started in December after the tax cut of the Trump administration cut U.S. taxes by $1.5 trillion over a decade, cutting the corporate tax rate for large companies from 35% to 21%. The tax cut also included a one time tax for repatriation of $2 trillion held by U.S. companies overseas. This WSJ analysis says there are questions whether the tax cut is working, whether it will encourage new investment, lead to companies increasing wages, or whether this will largely result in corporations returning money to investors with larger dividends and corporate buybacks. Morgan Stanley's analysis of earnings transcripts of companies in the S&P 500 show 44% of the companies say they will use some portion of the tax gains to make capital investments and increase wages, with 28% going in the opposite direction and using them to return money to shareholders. Experts caution that corporate buybacks do not always lead to the company's stock outperforming the stock market. The future of companies depends more on the capital investments and in human capital. There is a sense that workers wages have stagnated since the mortgage financial crisis in 2008, with the economic crisis, globalization and outsourcing, reduced alternatives for workers, geographic pressures in relocation, all pushing wages down.  This is being closely watched with articles on stagnation in wage growth this week in the NYT and WSJ, and earlier in the Economist magazine. Reports on the Trump administration tax cuts passed by a Republican Congress suggested a large tilt towards benefitting the highest income households. Problem with higher stock prices reaching the broader middle class are recognized in that one third of stocks are owned by overseas investors, and 84% of the remaining stocks are owned by the wealthiest 10%. Republicans have turned to bonuses typically of $1000 per person given by companies yet this amounts now to about a few billion dollars over an estimated 4 million Americans, says this WSJ analysis. This is not enough to justify a huge tax cut and raise the deficit by over a trillion over 10 years on the assumption that it would lead to higher wages or capital investment when about $200 billion goes to boosting stock prices. This comes at a time when the American middle class is not broadly invested in the stock market after the exit following the battering stock prices took during the 2008 financial crisis. ...

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Fred Hiatt of The Washington Post asks the question what would have happened if U.S. president Harry Truman had sounded the retreat for war weary Americans following the Second World War- as Greece floundered, during the Berlin Blockade 1948-1949 when Truman ordered airlifts to Berlin which totaled 200,000 in one year from the U.S. and allies, as South Korea was invaded by the Communist North in 1949 when Truman responded with the landing at Inchon. He cites an intervew with president Obama in the Atlantic magazine of Jeffrey Goldberg, where Obama's views after hours of conversations are summarized as being- that the Middle East cannot be fixed during the Obama years in office, and not for a generation, so that it would be better to simply do nationbuilding in the U.S. He points to Trump's interview with the Washington Post about pursuing a similiar policy because the U.S. is much poorer today than it was in the past. Hiatt says the U.S. GDP per capita was $27,000 in 1945, $62,000 today. And who would have thought in 1953 as the Korean War wound down and Federal Republic of Germany under Adenauer was emerging, Japan recovering from the devastation of the war, that South Korea, Japan and Germany, would one day be America's strongest trading partners and prosperous democracies. It was not about nationbuilding but lending a hand when needed, and the countries having to lift themselves up by the bootstraps- yet during a severe crisis as in Greece, Berlin, Seoul, in the 1950's when the post war Europe and East Asian countries were being established and needed help, the U.S. offered the early security and economic support needed to allow nationbuilding to happen by people in these places pulling themselves up by the bootstraps over a subsequent longer period. Truman did not shrink from the challenge and set the groundwork for today's European Union, and for today's Japan and South Korea. ...

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Theresa May becomes the only candidate for leadership of the Conservative Party after Ms Leadsom withdraws from the race. No leadership vote will no take place with Conservative Party members and no early general election is planned. May is expected to become prime minister of Britain by July 12, replacing David Cameron. Her theme is for "one Britain" and to do away with the rising inequality and gap between London and the rest of the country, which was part of the anxiety of voters who voted 52% for Brexit on issues of immigration burden on social and health services, national sovereignty, and a sense of ordinary people being neglected by elites in both parties. May will invoke Article 50 to leave the European Union and begin a 2 year period of negotiations only after she has developed a clear negotiating strategy. Kenneth Clarke, a Conservative Party cabinet minister called May a "bloody difficult woman," but this did not affect May, who said Mr Juncker of the EU was the one who would find this out in negotiations.  What is significant for Britain is May's moderate position coupled with a clear goal for removing some of the causes of the inequity in British society, which is needed for Britain to remain united. She called on companies like Amazon, Google and others to pay their fair share of taxes, and made clear her intent to strengthen the mechanisms for controlling executive pay. Also part of this strategy will be a more effective immigration control policy, which she did not implement vigorously as Home Secretary in the Cameron government, partly because of constraints set by EU membership. May made clear her agenda going forward by saying: "There is a growing divide between a more prosperous older generation and a struggling younger generation. And there is a gaping chasm between wealthy London and the rest of the country."  Changes May is supporting are to make executive pay rules to become binding not just advisory, and for employees and consumers to gain seats on company boards.  ...

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The Climate Change Bill, Inflation Reduction Act of 2022, CHIPS and Science Act, gun control legislation have moved forward president Biden's program for Build Better America forward leading to a huge change in the perception of his administration. There may be a sense that Biden could do more in Congress in the way FDR and Truman changed America, and creating once more a beacon for the world shaken by the pandemic.

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The 2022 industrial trade fair in Hanover, Hanover Messe, is covered here in DW.com with 2500 exhibitors showing how they are responding to a changed world after the pandemic and the Russian invasion of Ukraine with support from China. Export oriented companies have to rethink their strategy says Thilo Brodtmann, the executive director of the German Engineering Federation, Supply chain disruptions and the pandemic have led to many German companies reexamining their reliance on Chinese suppliers. Human rights and democracy are now part of the reorienting of business in a new direction. The war in Ukraine is also having an impact. Reducing CO2 emissions is also a major part of the reexamination. Chancellor Scholz told the Hanover Fair at the opening ceremony -"We need to bring along with us emerging and developing countries, whose demographics and economic dynamics are turning them into new centers of power." Brodtmann says the solution is "to become independent and to have a completely different value chain." The head of the German Associaltion of Electrical and Electronics Industry Wolfgang Weber says "I'm quite sure that German companies are ready to invest in any of these countries in Asia, Latin America, and Africa to diversify their supply chains." However such new markets are not very well represented at the Hanover Fair, so that policymakers and German business have a lot of work to do to open up new markets across the world in Asia, Latin America and Africa. India, Indonesia and Vietnam are considered to offer good prospects for diversifying Germany's supply chain and a lot of work needs to be done. ...

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Critics say China uses debt trap diplomacy in Africa through its infrastructure investment projects. Silja Frohlich of DW.com speaks to Eric Olander of the non-partisan China Africa Project to make an assessment of what is happening. Olander says Africa is facing a demographic change of immense proportions with about a billion people that are being added by 2025. For African leaders what are their options- do they build the infrastructure that would lead to the industrialization that creates jobs for all these people, even as they use their children's future to borrow vast sums of money. Global and private markets would charge 7 times the interest that the Chinese are charging, says Olander. China has built roads, railways, bridges, hospitals, and other infrastructure for which there was not enough financing from other countries. Since the Belt and Road Initiative was launched 5 years ago it has built four new railways- the Mombasa-Nairobi railway, Addis Ababa-Djibouti (759 kms), Abuja- Kaduna (186 kms) and Angola's Benguela railway (1866 kms). China has also helped Africa to develop its options with alternative sources of investment helping it negotiate new investments from different sources as Kenya and Uganda are doing today.  At the conference in 2019 in Beijing President Xi offered cancellation of interest till 2018 for loans to Ethiopia. A new effort to introduce transparency and improve terms and offer debt forgiveness is underway to change China's image for investment in Africa. Olander sees China making a solid contribution over the past 10 years funded by Chinese money. ...

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The Impossible City Paris in the 21st Century by Simon Kuper is reviewed in the Washington Post. It shows the incredible revival of the French capital and its suburbs as France has done an exceptional job of preparing the city for the Olympics. No other city has done so much for its population. Martin Gelin says after visiting the city now compared to 4 years back- parking spaces have become cafe patios, heavily trafficked boulevards bike lanes, new bookstores and galleries popping up everywhere, the city building sports and cultural facilities in neglected neighborhoods. Attention to social housing and huge expansion of public transit. Car traffic halved so air is cleaner than in 1990's. Paris is different from New York and London- it is avoiding "plutocratisation" of the city so that the best spaces do not go to banking and finance. In Paris the social housing units have tripled since 1990's including in 13th, 19th and 20th arrondisements. Paris does not want to become a city of millionaires,  tourists and poor people like San Francisco, says Kuper. Anne Hidalgo, Mayor of Paris wants 30 percent of all Parisian homes to be social housing by 2035, and another 10% as affordable housing (with rents  at least 20% below market rates). Grand Paris project will create 68 new subway stations so all of Metropolitan Paris is within 10 minute walk to a subway station. Diversity can be seen and it creates a healthy human experience in cities so that people are less likely to act with prejudice. ...

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People in Japan know the decluttering movement, to simplify one's life by getting rid of things one really doesn't need, as "danshari." The word "danshari" is taken from 3 Japanese characters meaning "refuse," "dispose" and "separate." Hideko Yamashita's book on danshari is a bestseller in Japan. She says it is a way to get rid of what is contaminating one's life, just like the way one does Buddhist meditation or practices Zen Buddhism to unclutter one's mind. Religion teaches one to keep the minimum that adds meaning and joy to one's life. This is the opposite of the tendency in the postwar years to collect and hoard things. To not be wasteful or "mottainai" was a good thing then, and before the war when there was scarcity of consumer goods during Japan's early development phase. Now with a consumer society things have changed, just as in the U.S. and Europe, decluttering makes sense in a consumer society where one is under constant pressure from advertising to buy things. ...

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Murdoch is likely to keep the quality of journalism on the news side of the paper to show that he can do this well too and provide more dollars for international coverage which under prior ownership Zannino's plan was not giving enough importance or dollars to the Asian and European editions.

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Jeanne Whalen on the Two Speed Economy in the US September 2025- diverging paths of low and high income Americans. With the new administration in 2025 priorities shift to immigration and what to do about 14 million illegal migrants from Latin America and other places, war on fentanyl and drug trafficking gangs with hundreds of thousands of lives lost to fentanyl and drugs in the US, crime and safety which includes the unprecedented illegal movement of drug trafficking in the Nation, and to a bold posture on using US advantages of its huge market to get European Union, Japan, South Korea, and China to level the playing field on trade bring jobs home.The Biden administration had already conceded to DJT's approach in its one term presidency by shifting on uncontrolled illegal migration but not fast enough, by not removing DJT's tariffs, and failing to take an aggressive posture on fentanyl and drug trafficking. Of the DJT plan US has tariff based revenues of 10--15% for all countries imports into US can that it redirect to groups to soften any effects of tariffs. DJT administration oil transition policy of stretching out the transition to give middle class and lower classes cost of living relief was also accepted by the Biden administration and is now the policy of Democrat run California state government.  The US economy was slowing in 2024 under the Biden administration. What has changed in 2025 is that the US stock markets are responding to steps taken by the DJT Republican administration to lower the cost of doing business by softening regulations, and giving US business the upper hand in different industries, and rebuilding the manufacturing sector with calls for EU and Japan/South Korea to invest more in the US as a quid pro quo for market access. This has led to increase in the value of market portfolios of the income earners above 250,000, or 10% of American households. As this happens the process of trade renegotiation has introduced some uncertainty in 2025 and businesses are looking for more clarity before increasing investment and slowing job hiring which hurts younger people entering the job market and lower income Americans. Were things better under Biden? Government Covid assistance and payouts in the early years 2020-2021 helped lower income workers, as this faded and the cost of living autos, housing increased sharply under Biden in 2022-2024 the situation deteriorated. The situation today is similar to the situation in 2024 with the difference in 2025 that inflation is coming down just as government help is receding. And added factor is the DJT administration plan to tackle head on the increasing cost of Medicaid to about $1 trillion by adding new requirements and reducing subsidies. The federal workforce had a disproportionate share of black workers and the policy changes to reduce the federal workforce have increased black unemployment from 6.1% under Biden in August 2024 to 7.5 % a year later. Hispanics have seen slight improvement in unemployment to 5.3% in 2025, and the middle class incomes also have held up and are holding steady. Meantime Bloomberg points out that one third of people in the top 10% are living paycheck by paycheck because of high cost of housing, university education for children, and inflation.     ...

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Annamaria Andriotis does enormous service to millions of borrowers for student loans by putting down in simple payments terms everybody can understand the approach to take for a university education. She points out the pitfalls in taking federal loans and following the advice of the student loan office. The federal student loans have an origination fee of about 4.2%, so even if you pay off the loan early you are stuck with the origination cost, which private lenders such as major banks do not normally charge. On a $100,000 loan this could be $4200 right off the beginning, reducing the loan to $95,800. Private lenders offer fixed rates also at attractive terms of about 4%-4.25%, with added reduction of 0.25 to 0.5% for loans with automatic payment. The lenders include Wells Fargo, Suns Trust. It is important to have good credit ratings. Scores of over 700 or 720 in credit ratings provide the most attractive rates, yet a good credit rating is also acceptable. FICO scores range from 350 to 850 for credit ratings. Added reduction of quarter to half percentage point for automatic payment. A loan for $100,000 taken with Federal PLUS loan and government guarantees could run 7.21% for fixed rate. Andriotis points out that compared to the $4586 payment on a $100,000 student fixed rate private loan at 4.25% for 10 years, a federal guaranteed PLUS loan at fixed rate of 7.21% for 10 years would cost $3541 more over the life of the loan. Mortgage loans for 30 year fixed rate jumbo loan is about 4.14%. In September 2014, the rates for jumbo mortgage loans offered by private banks are now converging at the 4.18% for conventional mortgage loans. For auto loans zero percent financing from auto company lenders such as Toyota Financial are a better option. Rates of 2% on auto loans may be available from private banks and credit unions. SunTrust Banks has an online lending division LightStream that is offering personal loans to borrowers having good credit ratings scores, with interest rates of as low as 1.99%. The borrowers with excellent scores can get the unsecured option at the best rate of 1.99%. Credit unions are offering lower auto loan rates of 2.64% and 2.74% compared to banks charging average of 4.79% and 4.9%, according to data from SNL Financial. Millions of borrowers with good credit ratings, especially for student loans, need to start early in checking out the rates and shopping for the best rate. A good credit rating of parents can enable a student to make a huge difference in payments for undergraduate or postgraduate education, and avoid the unnecessary burden of high interest rate loans in a low interest rate environment....

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ECB president, Mario Draghi, is interviewed at his office in Frankfurt by the Wall Street Journal's Blackstone, Karnitschnig, and Thomson. Draghi quotes economist Rudi Dornbusch, who told him in the old days that the Europeans were rich enough to afford paying for it if everybody didn't work. Draghi, was head of the Bank of Italy, before becoming president of the ECB. He is acutely aware of the problems faced by Italy and other countries like Spain which have let labor markets become rigid, with extensive job protections and generous benefits for the unemployed. The result is that employers are reluctant to hire and young people face high unemployment rates- as high as 50% in Spain. For this reason Draghi sees the old social model in Europe as obsolete and already out. Draghi's sees austerity measures and spending cuts with the structural changes underway in Spain, Italy and other countries as the only way to generate economic renewal. On the Long Term Financing Operation launched by the ECB in Dec. 2011, Draghi says there was agreement within the ECB and the decision was unanimous. He makes it one of his objectives to achieve as much consensus as he can, to do what is right for Europe and to do it together with his colleagues in the ECB and the EU. That financing operation, and the binding deficit controls achieved at a recent summit of European leaders, he sees as all part of the pathway to fiscal union. ...

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In asignificant shift Apple is moving aggressively to hire chip engineers from other firms like AMD, and from high tech firms that are closing like memory chip company Spansion Inc., in addition to the acquisitions acquisition of P.A. Semi and other smaller companies. Thie goal is to develop new technology that would power new features for the iPhone and iPod, which competitors do not have access to. So while other tech firms are trimming, Apple is using its stronger financial position to go out and build up astrong in-house capability to develop its own chips and software to create new features exclusive to Apple. P.A. engineers are to help create ARM-based chips to improve performance and battery life of future iPhones. LinkedIn, anetworking site, shows100 people with Apple titlesand past expertise in chips with Intel, Samsung, Qualcomm and other companies. Additional job postings aggregated by site Indeed.com show recent postings for handwriting recognition technology, chip expertise for managing displays. Chief Technology Officers at AMD's graphics products group Koduri and Drebin have joined Apple. In the past Apple relied on Samsung for ARMHoldings licensed chip designs, ARM based microporocesor with custom features developed by Apple. Steve Jobs, Apple's CEO, says he wants Apple to acquire expertise and technology to run increasingly sophisticated software for iPhones and iPods, "You just can't go out and buy the chips off the shelf to do that," says Jobs....

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Of the 45 million US student loan borrowers in 2025- only 11 million are on time with payments. The rest seeing sharp credit score declines that limit their access to home loans, other credit, or increase the costs of access to credit. This limits access to housing, and other needs for this group, it also affects demand in the economy. A recent WSJ report showed Moody Analytics research that 80% of US consumer spending is now done by 20% of the top income earners in the US. Decline in demand from this group will affect the economic growth in the US and how well the stock markets do. This will affect the job growth in the economy month to month.  This means with inaction from the DJT administration and the SCOTUS lack of comprehension of the economic aspects of this issue in ruling out action taken by the Biden administration- that this failure to take action on relief poses added risks to the US economy in 2025. It also means uneven and unbalanced growth where some groups upper income are favored by the virtue of the way the economy operates leaving many young people out of the benefits of growth. This adds to the general feeling of frustration and discontent after the pandemic and after cost of living surges in 2022-2024. It also means university education is no longer affordable or accessible to young people. Other issues play into this such as the surging cost of university education and action needs to be taken to bring this into line with earlier post 1945 patterns where university education was affordable and taken up. The increase in apprenticeship programs is a good thing, yet the gradual turning away of young men from college education is a serious danger to the cultural literacy in the US in 2020-2030. Leaving aside Ivy leagues making state college and universities affordable is one of the big problems needing to be solved as a priority in the US.  ...

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A reminder from a veteran of investing about the enthusiasm and euphoria of Mr. Market, the term Benjamin Graham, author of the Intelligent Investor, used to describe the collective emotions of the people in the market during times of overoptimism when prices of shares have overextended and are overpriced. Graham warned of Mr Market in 1945, 1959, and in 1971, each time the market swooned and faltered. Zweig of the WSJ, points out data from Robert Shiller of Yale, the price/earnings ratio of the S&P 500 index jumping from 13.1 to 15.5 since March 2009, in 3 months. Ofcourse, this required aspecial disposition. Being well read and immersed in literature, mathematics and philosophy, helps to view things "from the standpoint of eternity, rather than day to day." And having a sense of detachment, a "certain aloofness," and "unruffled serenity." Graham mentions his internal equipment, his "embracing stoicism as a gospel sent to him from heaven." So Zweig again reminds investors on behalf of Graham as it were, and cautions about the mood swings ocurring lately from despair to a sudden optimism, which he describes as an insecure and desperate need to believe that things have taken a new turn when on closer examination things have only been papered over. Actually when one looks closely the credit tightening has eased by resolute action from the Fed and the Treasury and the Obama administration. But the underlying problem behind toxic mortgage securities remains at large. Private equity is being relied on to fix this problem in agovernment private partnership but no sigificant dent has been made in the toxic securities. Banks have made profits for one quarter, the outlook has improved and bank stock prices got a boost, but underlying problems remain. The loss in GDP this first quarter of 2009 compared to the prior year is 6% which is much better than the the 15-16 % drop in Germany and Japan, and 21% in Mexico. And the steep drops in unemployment are moderating. But large numbers of foreclosures continue with no dent in this in sight. And stimulus expenditures are only slowly trickling through, see the link to this. And the situation can only be described as improving but fragile....

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As Keith Bradsher of the NYT points out in this report too much may be made of the tariffs of 25% imposed by president Trump on steel imports. The effect Bradsher says on China is trivial because China imports make up a fraction of 1% or 0.1% of China's production, and only 2% of American steel imports. Most of China's aluminium is made into products such as auto parts and solar panel frames, and little of it is imported as raw metal. On the day the tariffs were announced, China's top economic official Liu He met with economic officials of the Trump administration and China's reaction was cautious and reflected the fact mentioned b.y Trump about its huge trade surplus with the U.S. of $375 billion in 2017. China's officials stated "that its dialogue with the U.S. was very useful, constructive, and helpful."  China's principal goals are first to preserve its broader trading relationship with the U.S. which gives it th $375 billion trade surplus for 2017 and creates millions of jobs in China, and to preserve its ability to invest in the U.S.  This has given China access to American technology and manufacturing expertise that would be difficult to develop independently. The Trump administration is meanwhile working with senior members of Congress to come up with new rules for tighter scrutiny of Chinese investments in the U.S. as a new phase of competition in technology takes place between China and the U.S.  ...