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Entries from June 2017

The IMF Blasts The U.S.

June 29th, 2017 · Comments Off on The IMF Blasts The U.S.

The IMF has become pretty critical of the US economic model, arguing it isn’t addressing rising inequality, stagnant wages, declining participation and social mobility and high poverty levels. While this critique is by no means exclusive of the present government, the IMF does warn that many proposals are liable to make these things worse. The […]

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Tags: Economy · IMF

Is The Fed Is Behind The Wrong Curve?

June 29th, 2017 · Comments Off on Is The Fed Is Behind The Wrong Curve?

Debt to GDP ratios have kept on rising since the financial crisis in most of the world, in some parts at alarming rates. While we wholeheartedly agree with the BIS that this is a dangerous development, we’re less sure about their diagnostic. In essence, the BIS argues that the Fed is behind the wrong curve, […]

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Tags: Monetary policy

Cypress 3.0 Still On Track

June 27th, 2017 · Comments Off on Cypress 3.0 Still On Track

Cypress Semiconductor is in the midst of a corporate transformation that was fueled by two acquisitions. While the company is still digesting these acquisitions, the indications are that the transformation is well underway and delivering solid returns. Now that the boardroom fight is out of the way, investors can concentrate on these developments. One should […]

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Tags: CY

What’s Behind Declining Economic Dynamism?

June 26th, 2017 · Comments Off on What’s Behind Declining Economic Dynamism?

Several measures like new company formation show a worrying decline in US economic dynamism. Demographics and changes in retail and house ownership explain part of this. Regulation and increasing economic concentration are also to blame. Source: What’s Behind Declining Economic Dynamism? | Seeking Alpha

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Tags: Economy · Regulation

Tesla May Have Taken Wrong Turn On Lidar

June 23rd, 2017 · Comments Off on Tesla May Have Taken Wrong Turn On Lidar

A lidar is a light-emitting radar which provides a 3D image of a car’s environment, necessary for autonomous vehicles (AV), but lidars are costly. Tesla, alone among car manufacturers, is dispensing with a lidar on its road to AVs. This forces much higher data generation, collection and computation on Tesla in order to improve the […]

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Tags: Autonomous Vehicles · TSLA

Is There A Shortcut For Tesla On The Road To Autonomous Vehicles? – Tesla Motors (NASDAQ:TSLA) | Seeking Alpha

June 22nd, 2017 · Comments Off on Is There A Shortcut For Tesla On The Road To Autonomous Vehicles? – Tesla Motors (NASDAQ:TSLA) | Seeking Alpha

Tesla is taking a different route towards full autonomous vehicles compared to other car manufacturers in dispensing with the lidar. This requires the company to generate much more data in order to improve the algorithms required for other sensors to build a 3D model of the environment without a lidar. Some argue this data can […]

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Tags: Autonomous Vehicles · TSLA

The Wrong Kind of Entrepreneurs Flourish in America – Bloomberg

June 22nd, 2017 · Comments Off on The Wrong Kind of Entrepreneurs Flourish in America – Bloomberg

Because it’s just a transfer from one person to another, rent doesn’t necessarily make an economy less efficient — it’s just often unfair. But Robert Litan and Ian Hathaway, writing in Harvard Business Review, have a more dire hypothesis. They surmised that many American entrepreneurs are no longer looking for ways to produce more useful […]

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Tags: Economy

Buffett Is Right, The U.S. Pays A Huge Economic Price For Its Wasteful Healthcare

June 21st, 2017 · Comments Off on Buffett Is Right, The U.S. Pays A Huge Economic Price For Its Wasteful Healthcare

The US healthcare system is rife with inefficiencies; as a consequence, it’s much more expensive compared to other advanced nations. This would be tolerable if it produced better health outcomes as these other nations, but it doesn’t. These high healthcare costs put America at a competitive disadvantage. The proposed healthcare law does nothing to address […]

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Tags: Healthcare

Deregulation Rallies Bank Stocks, But Be Aware Of The Risks

June 19th, 2017 · Comments Off on Deregulation Rallies Bank Stocks, But Be Aware Of The Risks

Bank shares rally predictably on the prospect of financial deregulation. They did so twice in the past 6 months already. However, financial deregulation is very risky as the cost of financial crises are much larger than those of garden variety recessions. Reducing the risk of future financial crisis should therefore be the main driver of […]

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Tags: Financial regulation

Finisar’s Big Value Gap To Lumentum Is Going To Close

June 17th, 2017 · Comments Off on Finisar’s Big Value Gap To Lumentum Is Going To Close

Finisar, the biggest optical networking company, trades at a huge discount compared to number two Lumentum. We don’t see reasons for that in terms of margins, growth, profitability or balance sheet. And now the last reason for the value gap, Lumentum’s upcoming boom in VSCELs is also matched by Finisar. We think the value gap […]

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Tags: FNSR · LITE