by liam 95 Replies latest social current
"NVIDIA at one point had a triple digits P/E ratio (meaning the stock was trading at more than twice the actual value of the company)"
A triple digit P/E ratio probably means much more than simply twice a company's value. What's the net tangible asset backing per share?
Trumps game has just earned America a 34% tariff on all goods going to China.
Trump wants more manufacturing in the US, which might be a good idea ( it might not be), but that is not going to happen overnight,it would take years for companies to set up in the US.
In the meantime, US consumers pay far more than before for every single item from overseas, including inputs needed for existing manufacturing. Other countries will impose reciprocal tariffs, undermining the sales of any US made items - although most countries are trying to avoid this, to avoid escalation, making it worse for everyone. The rest of the world will find other markets to buy and sell where possible, avoiding the US completely.
In this scenario, I can't see any tax cuts coming anytime soon for US taxpayers. Trumps plan might be short term but if it isn't, how much retirement savings will people lose if the stock market keeps crashing?
As far as tariffs on Canadians....I always thought they were up to something. :)
They even made a movie about it!
@joey jojo: in the mean time car parts manufacturers have set up factories in a matter of months and are now up and running, some people saw what was coming and invested, those people are going to be rich in short order. Hyundai and Tesla both did their mega-factories in just 2 years. There is plenty of empty manufacturing space ‘today’ that can simply be reopened, there are plenty of manufacturers that simply can hire more people and manufacture more ‘today’, where that employment historically has gone abroad.
The problem is not space or machines, it is people. We currently have 40% of working-age people ‘not working’ at all, that’s a massive amount that is unemployed and collecting welfare (the unemployment rate has been a lie since Obama changed the definition to <6 months). One of the things we absolutely have to do is reduce the total welfare package from the current equivalent of $25/h wages (between unemployment, food stamps, rent assistance, transportation assistance, cell phones, Medicaid etc) to at least minimum wage and eliminate people from the system that can but don’t want to work, guess what, suddenly you’ll see millions of people willing to work, reduce crime and increase the economy.
Anonymous, let's say that Tesla and Hyundai built factories in a couple of years. How many years of planning went into that decision?
Let's be generous and say 3 - 4 years from conception to manufacturing. That's Trumps time in office done, unless he changes the laws , which is possible. You are also assuming that all companies will play Trumps game.
It's more likely that the rest of the world will never trust America again and take measures to ensure they are not put in the same position in the future.
Some background on the "carefully crafted" tariffs on remote islands
For those that have a clue ... if they didn't put tariffs there, what do you think would happen?
Someone owns it, and someone could register companies there ... to bypass the tariffs.
So no, it's not as silly as you try to make out. It's crossing the T's and dotting the i's.
Anony mous
It’s not that simple as to force people back to work
The 40% of working age people who are not working can stay right where they are. It’s cheaper to get ai and automation to do the work.
Ive been a manager and business owner for decades.
I’m sick and tired of dealing with other peoples bullshit. The cops showing up at work, them fighting with their ex girlfriend, fighting with other employees bringing guns and threatening employees, stealing tools from the shop.
What happens when you try to employ the chronically unemployable is that all of your good employees leave and your company goes broke.
You couldn’t pay me to have those people on my property. Pay them to stay at home or they will steal it from your house
Hoser, wow! What kind of business do you own?
A small factory.
I Don’t own the one I am currently managing which is good as I don’t have any of my personal assets tied to the business but I previously wholly owned one facility and owned another facility with partners that we sold to an international company about 10 years ago.
I sold the facility I owned about 8 years ago.
What many people don’t understand is that the “good” jobs aren’t coming back. We don’t need your services anymore. Manual labour will soon be a thing of the past. Even a lot of white collar office jobs will be replaced by ai.
I recently replaced one of my machines with one that has artificial intelligence to adjust it to different product flows. It cost me one years salary for one employee to purchase and has already paid for itself in time savings and better quality output.
Our line now goes 40% faster per hour and we don’t have to stop between production runs for 1/2 to 1 hour to manually adjust the equipment. I’ve been able to cut out the after hours overtime which is the time of day where most of the employee shenanigans take place.
This ai machine is magic. I don’t know how it works but it teaches itself to keep doing a better and better job.
Simon
For those that have a clue ... if they didn't put tariffs there, what do you think would happen?
Someone owns it, and someone could register companies there ... to bypass the tariffs.
So no, it's not as silly as you try to make out. It's crossing the T's and dotting the i's.
Simon, for a moment - I thought you were being serious.
