Value Investing Whistleblower: Wall Street Has Engaged in Widespread Manipulation of Mortgage Funds |
- Whistleblower: Wall Street Has Engaged in Widespread Manipulation of Mortgage Funds
- US-China trade enters new era after overnight Huawei, Foxconn and TSMC announcements
- Goehring & Rozencwajg - Oil Supply is About to Collapse
- JCPenney Files for Restructuring
| Whistleblower: Wall Street Has Engaged in Widespread Manipulation of Mortgage Funds Posted: 15 May 2020 01:28 PM PDT |
| US-China trade enters new era after overnight Huawei, Foxconn and TSMC announcements Posted: 15 May 2020 06:32 PM PDT My analysis / commentary on the article: The trade tensions that are playing out between the United States and China, are most exacerbated in their nature within the technology industry. With COVID-19 acting as a short term dampener but long term catalyst in reigniting the trade war, as general anxiety over the pandemic has begun to subside with a recovery in sight, we're beginning to see things happening very quickly on the policy side from Washington. Given the imminent timing of election season coming up this fall, it makes sense that the current administration would have major incentives to try and create as much of an impact as they can in the given time period that they have. As to immediate focus, semiconductors continue to be an area within technology that garners the majority of attention. The extension of banned exports for Huawei is, at least in its current state, essentially a signed death knell to the company, and is an extraordinarily direct sign of the current administration's stance. Whether it is a completely fair one is potentially up for debate. Huawei is being charged primarily for conspiracy to steal trade secrets (https://www.justice.gov/opa/pr/chinese-telecommunications-conglomerate-huawei-and-subsidiaries-charged-racketeering). This is true, but is also generally the case for the Chinese tech industry as a whole, as well as historically so for all developing countries. Ideally, the hope is that as countries become more developed though, this begins to taper off as has occurred with other countries like Japan, South Korea, etc. Historically, we have seen the need for an initial set of sanctions to solidify adherence to the protection of intellectual property rights. Take the sanctions against Japan during the 1980s as an example. At least in this respect, the current trade war that's occurring between the US and China isn't completely novel. Huawei in this case is acting as a sacrificial figurehead. From a different angle, TSMC announcing their intention to build a semiconductor fabrication facility within the United States, is likely a strategic move taken to ensure the continued stability and access of their existing export pipelines. The company manages a tricky situation in that the majority of its revenues come from exports to the US through it manufacturing contracts with companies like Apple, AMD, Nvidia, etc. while also having to contend with its much larger and closer neighbor China. The article concludes with an argument that this is the beginning of a decoupling between the US and China. My personal take is that the reality is a bit more complicated. We live in a world that is deeply intertwined. Being dependent on each other for trade is a great factor in ensuring geopolitical and thus economic stability. Though it theoretically may be possible to successfully decouple, I doubt either of the two countries want this to actually occur as their primary goal. I would continue to look at technology companies as a benchmark for indicators of how things will play out. Any moves made by the two countries will be most immediately and strongly felt there. [link] [comments]  |
| Goehring & Rozencwajg - Oil Supply is About to Collapse Posted: 15 May 2020 11:11 PM PDT |
| JCPenney Files for Restructuring Posted: 15 May 2020 11:09 PM PDT |
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