"Wishful Thinking": Billionaire scoffs at economic optimism

Should we still bet on America? ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ "Wishful thinking." That's the verdict from billionaire businessman Thomas Peterffy on the American economy. He recently said that he had "no idea how" the current market rally is going to continue. "I find it hard to believe that inflation will go down and, at the same time, earnings will continue to rise," he said. "I don't see how, with rising employment, inflation will go down. If there's a contraction in employment, then earnings will stop rising." He told Marketwatch that the "soft landing" scenario so many have predicted for the American economy is just "wishful thinking." Here's what we are learning - expectations do create a new reality. Look at AI - the tangible returns aren't really happening yet. Yet we've seen a massive boom in the technology sector as people get excited for the next big thing. Manufacturing is returning to the United States - contrary to almost all the predictions of the great and the good. Inflation has been successfully contained - at least to a greater extent than many of the so-called experts predicted (aside from Jerome Powell). There's a general rule here that comes from one of the greatest economic thinkers of all time. Adam Smith, author of The Wealth of Nations, famously said "there is much ruin in a nation." There can be a great deal of corruption, incompetence, waste, failure... But the productive really do find a way. The United States of America, despite all its problems, still has the best environment for elite human capital to create economic growth. There's a lot dragging the economy down and a lot of stupid decisions being made... America's ability to generate growth is unparalleled, and the pessimists keep getting proven wrong. Things that can't last forever, don't... but don't give in to repetitive doomerism. Keep Moving, Corey Snyder Publisher, Rogue Publishing WORD ON THE STREET Congress Targeting Zuck - Alphabet Up On Strong Earnings - Alphabet beat Wall Street estimates on earnings, posting returns of $1.44 a share. Earnings and revenue were both up compared to a year ago. GOOGL was up more than 6% in after-hours trading. - First Biden, Then Zuck - The House Judiciary Committee is considering holding Meta Platforms CEO Mark Zuckerberg in contempt of Congress. The CongressCritters are unhappy with Meta/Facebook for allegedly not providing enough documents as part of a subpoena. Meta claims it has provided Congress with 53,000 documents. Not enough! Chair Jim Jordan (R-OH) has been pushing the company hard on its censorship policies. - They Still Make A Good Calculator - Texas Instruments (TXN) suffered a setback after posting increasing inventory and declining revenue year-over-year. The stock was down more than 3.5% in after-hours. - UPS Avoids Strike - UPS and the Teamsters have struck a deal, sparing the delivery company the prospect of a ruinous strike. UPS called the deal a "win-win" while the Teamsters claimed a "tremendous victory for labor." As long as I get my deliveries on time, they can say whatever they want. HOT SPOTS: What's Going on in Geopolitics - Putin Heading To China - Russian president Vladimir Putin will attend the Belt and Road forum in China in October. It's another challenge to Washington, as the United States has repeatedly warned China not to assist Russia. - IMF Raises Growth Estimate For India - The International Monetary Fund has given its estimate for Indian economic growth a huge boost. It's now predicting growth will hit 6.1% - making it the world's fastest growing world economy this year. For 2024, growth is estimated to be 6.3%. - Deutsche Bank Beats Estimates - Deutsche Bank reported a net profit of $842 million - a sizable decline year-on-year but an improvement on what experts expected. It's the 12th straight quarterly profit for the European banking giant. CUTTING EDGE: What[']( Happening In Tech - SNAP Down Big On Weak Forecast - Snap Inc. fell off a cliff in after-hours, dropping almost 20%. Its guidance missed experts' expectations, despite actually doing better than analysts' expected when it came to earnings. - Twitter Changes Its Handle - @Twitter is officially dead. The social networking platform's handle is now @X, as part of Elon Musk's insane/brilliant rebranding. Users are mostly unhappy, but who will argue with the TecnoKing? No word on what we are supposed to call tweets now. - Microsoft Claims Its Winning In AI Race - Microsoft CEO Satya Nadella claimed that AI is helping Azure, its cloud business, greatly expand its business. "We are seeing new logos, customers who may have used another cloud for most of what they do... for the first time sort of starting to use Azure for some of their new AI workloads," he said. Still, despite gaining during the trading day, MSFT was down almost 4% in after-hours trading. Tough crowd. MSFT's quarterly revenue guidance missed expectations FOR YOUR CONSIDERATION --------------------------------------------------------------- Whoever convinced Florida Governor Ron DeSantis to run for president should be fired. What happened to the GOP's new rising star? It's been all downhill since he announced. What does it mean for the Republican Party... and its relationship to big business? [THE INCREDIBLE SHRINKING DESANTIS CANDIDACY]( Enjoying Dawn Report? 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