News

Is America sliding toward bankruptcy?  A lot of people were asking this question when the US reached its debt limit, the maximum amount of money the Treasury can borrow to pay its bills.  This problem is one that millions of people understand from firsthand experience: The bills keep mounting, there’s not enough money to pay them, and people keep falling further behind.  This is bad enough when it happens to individuals; when entire countries are in this predicament, it’s much worse. 

It’s possible that a story that made headlines in early February will be forgotten by the time you read this. But it’s also possible that it will be a turning point, and a development with major implications for the stock and bond markets, inflation, and everything related to the economy.  Fasten your seat belts – just in case.

There’s a saying that money goes to money, and Bill Gates is proof of this.  He is widely considered one of the greatest entrepreneurs and investors in our era.  For many years he was the richest person in the world; although he no longer holds this title, he remains one of the richest. 

Democrats and Republicans are usually at each other’s throats, and recent hearings in Washington are an example of this.  But those hearings go far beyond politics as usual: They’re mind-boggling and shocking, and will not fade from the news and be forgotten.  The issue: the Government’s Covid relief programs were ripped off big time.  

Twelve years ago, a catastrophic event made headlines around the world, and now it’s in the news again.  But there’s one important difference: 12 years ago, millions were frightened by what could happen; now they’re frightened by what is happening.  

Unlike those of most other CEOs, Warren Buffett’s annual letter to shareholders is not just a corporate update.  It’s a major event, one that Wall Street anticipates, discusses and analyzes in great detail.  This year’s letter was no exception.  However, unlike those written in years past, there were several surprises.