A credit crunch coming soon Published by Hilliard MacBeth on Jan 10, 2025 Hints of an imminent credit crunch in the U.S. and Canada are piling up. Too much debt in commercial real estate, residential real estate, credit card balances, personal loans, mortgages, builders’ construction loans and even governments could trigger... Read more
A very reliable recession indicator is flashing red Published by Hilliard MacBeth on Jan 03, 2025 Among the several U.S. recession indicators warning of trouble to come, this might be the best one to watch. Yield curve inversion sounds a bit wonky, but it is straightforward. The yield curve on government bonds is derived from the different interest... Read more
The Fed shocks the market triggering an abrupt selloff Published by Hilliard MacBeth on Dec 20, 2024 The U.S. Federal Reserve surprised markets this week with a small rate cut (expected), a forecast for fewer rate cuts next year and higher inflation (very unexpected). This was a more hawkish report than the market expected. The stock market reacted very... Read more
Anarcho-capitalist Javier Milei disrupts Argentina and has U.S. admirers Published by Hilliard MacBeth on Dec 13, 2024 Javier Milei is making huge changes in Argentina and U.S. leaders like Donald Trump and Elon Musk are planning to follow his radical moves. Will Argentina survive Milei? Will the U.S. copy his program? Source: The Economist While Americans were electing... Read more
Stock prices reach bubble levels in US Published by Hilliard MacBeth on Dec 06, 2024 The U.S. stock market is extremely expensive, by all measures. Technology companies like Nvidia lead the way, but even the average stock is overvalued in relation to past cycles. When will there be a correction in the U.S. stock market? As we approach... Read more
Trump threats of tariffs worry Canadians Published by Hilliard MacBeth on Nov 29, 2024 President-elect Trump doubled down on his threat to impose tariffs on imports to the U.S. This time he focused on two countries — Mexico and Canada — with a statement that he would put a 25 percent tariff on imports. How should Canada counter these threats?... Read more
President-elect Trump's tariffs will hurt more than they help Published by Hilliard MacBeth on Nov 22, 2024 President-elect Donald Trump believes in tariffs, and he plans to implement higher tariffs as soon as he takes office. Most economists think that is a really bad idea. Will Trump’s tariffs help or hurt the economy? Donald Trump has been a promoter of... Read more
Elon Musk has a mandate to impose radical cuts on government spending Published by Hilliard MacBeth on Nov 15, 2024 Elon Musk has been appointed by the incoming President of the U.S. to head the Department of Government Efficiency, or DOGE, with a mandate to cut costs, reduce regulations, shrink the size of the bureaucracy and make government more efficient. In the... Read more
Superhot rock energy provides unlimited power Published by Hilliard MacBeth on Nov 08, 2024 One of the hottest new technologies for production of heat and electricity is found deep underground. With ground-source heat pumps there is a year-round reservoir of constant temperature air just a few meters below the surface. This air is the same as... Read more
The great mortgage reset in Canada will hit hard Published by Hilliard MacBeth on Nov 01, 2024 Canadian policy makers are worried about potential weakness in the economy due to higher interest rates. One of the biggest challenges facing Canadians is the increase in monthly payments that comes with higher rates. Although there have been four Bank... Read more