Apple’s $5 Billion Leveraged De-Equitization Shows Folly of Repatriated Cash Tax Break

Soooo… Why again do they need that tax holiday?

And what does it mean when you’re your biggest investor?

Via Bloomberg:

 

Apple is about three-fourths of the way through a program that’s returning $300 billion of capital to shareholders by the end of March 2019. At the start of July, the company was sitting on more than $261.5 billion of cash — 94 percent of which was outside the U.S., Chief Financial Officer Luca Maestri said on an earnings call.

 

 

via Apple Sells $5 Billion of Debt to Fund Share Buybacks, Dividends – Bloomberg

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How to be a Stoic – in Practice

A very useful guide by Massimo Pigliucci, with a header from the man who taught us how we should (stoically) roll… Worth a read.

If from the moment they get up in the morning they adhere to their ideals, eating and bathing like a person of integrity, putting their principles into practice in every situation they face — the way a runner does when he applies the principles of running, or a singer those of musicianship — that is where you will see true progress embodied, and find someone who has not wasted their time making the journey here from home. (Epictetus, Discourses I, 4.20)

https://howtobeastoic.wordpress.com/2017/08/16/how-to-be-a-stoic-in-practice/

Trump’s Amazing Historical Ignorance, “Priming the Pump” Edition

From the transcript of a recent interview with The Economist:

But beyond that it’s OK if the tax plan increases the deficit?
It is OK, because it won’t increase it for long. You may have two years where you’ll…you understand the expression “prime the pump”?
Yes.
We have to prime the pump.
It’s very Keynesian.
We’re the highest-taxed nation in the world. Have you heard that expression before, for this particular type of an event?
Priming the pump?
Yeah, have you heard it?
Yes.
Have you heard that expression used before? Because I haven’t heard it. I mean, I just…I came up with it a couple of days ago and I thought it was good. It’s what you have to do.

via Q&A: Transcript: Interview with Donald Trump | The Economist

After Massive Loan Growth Under Obama, Credit Stalls Under Trump

Coincidence? Via Wolf Street:

US-commercial-industrial-loans-2012_2017-05-10Over the past five decades, each time commercial and industrial loan balances at US banks shrank or stalled as companies cut back or as banks tightened their lending standards in reaction to the economy they found themselves in, a recession was either already in progress or would start soon. There has been no exception since the 1960s. Last time this happened was during the Financial Crisis.

via Oops, this Wasn’t Supposed to Occur in a Rosy Credit Scenario | Wolf Street

Trump Treasury Secretary Steve Mnuchin Renounces Commitment to Glass-Steagall While Saying He Isn’t | naked capitalism

I don’t understand this at all. Glass Steagall would help Goldman by disrupting the business models of JP, Citi, etc. Hmmmm. I suppose Jamie Dimon has been burning up the phone line?

Via Yves Smith at Naked Capitalism:

I’ve seen some pretty brazen performances over the years, but this one is a standout in a bad way. Steve Mnuchin tells Elizabeth Warren, with a straight face, that Trump’s campaign pledge to implement Glass Steagall has nada to do with breaking up banks. He also makes the utterly false claim that separating commercial and investment banks would hurt small bank lending. The integration between small business activities and investment banking is nada, save at most for brokerage and investmetn management targeting the more successful small business owners. That has bupkis to do with lending.

via Trump Treasury Secretary Steve Mnuchin Renounces Commitment to Glass-Steagall While Saying He Isn’t | naked capitalism