By Sam Khater of CoreLogic
The contours of a typical economic expansion and recession are strongly driven by loan performance. When times are good, lenders expand loan production to more marginal borrowers but when loan performance begins to deteriorate, lenders become more conservative, which often exacerbates an economic downturn. Therefore, an understanding of the credit cycle is important to understanding the economic cycle.
After already flipping on funding for the border wall to help avert a government shutdown, The Hill is now reporting that Trump is also willing to cave on Obamacare subsidies.
#BREAKING: WH tells Dems it will keep paying ObamaCare subsidies https://t.co/QflYmFxGFp pic.twitter.com/bFX75FTtKP
— The Hill (@thehill) April 26, 2017
Having promised "the biggest tax cut in history," and seemingly desperate for a win (given his folding on the funding of the wall), one wonders why President Trump has delegated the announcement of his Tax Reform plan to Treasury Secretaty Steven Mnuchin and Chief Economic Advisor Gary Cohn. Reduction, repatriation, simplification, and de-itemization appear to be the cornerstones.
2017 Tax Reform for Economic Growth and American Jobs
As the minutes tick by ahead of the announcement of "the greatest tax cut in human history," we are getting more information on the personal tax rates (something Treasury Secretary Mnuchin failed to mention earlier). As Fox News reports, in addition to raising deductions, the Trump administration will collapse the current seven-tier bracket system into just three tax brackets under the new plan, taxed at rates of 35 percent, 25 percent and 10 percent.
Authored by Charles Hugh-Smith via OfTwoMinds blog,
Until the system implodes--you're a genius.
So you've ridden the markets higher--stocks, housing, commercial real estate, bat guano, quatloos, you name it--everything you touch turns to gold. What can we say, bucko, other than you're a genius!