Investing Thread

[NCMUFan]

Ground beef is too expensive

https://www.cbsnews.com/amp/news/u-s-beef-prices-record-highs-cattle-industry-struggles-to-keep-costs-down/

We have certainly cut back our beef intake due to very high prices.
But this was something we did for fun.

[TSmith34, Inc.]

My understanding is using the 1977 Emergency Powers act which is for real emergencies like natural disasters, terrorist attacks, pandemics, nuclear exchange, etc. does not permit the executive branch from using it to declare an "emergency" and enact tariffs which are the sole  jurisdiction of Congress. 

I believe steel & aluminum tariffs are valid and would remain as it falls under another law.

My 2 cents.

This is true until it gets to the hack partisan Supreme Court and their inevitable "Trump is beyond the law" ruling.

For companies and consumers, perhaps a respite and another chance to import at reasonable prices; for investors, continued and constant chaos.

[MUBurrow]

Ground beef is too expensive

https://www.cbsnews.com/amp/news/u-s-beef-prices-record-highs-cattle-industry-struggles-to-keep-costs-down/

Good.

She says that if a cow is non-pregnant, or "open" — meaning it's not carrying a calf and growing the herd — it's a better financial decision at today's prices for Bays to sell it.

[Shaka Shart]

Good.

US eating less beef is good for us and the environment.

[The Sultan]

Cows exist to nourish me if I want to eat them.

[Uncle Rico]

US eating less beef is good for us and the environment.

The meat summit in shambles

[jesmu84]

Apparently it's going to get higher.  The Atlantic has an article about some flesh eating fly that like kes to eat cattle flesh.  The US using radiated insects unable to breed, over several decades beat it back to the Darien Gap.  It recently broke out and is now back into Mexico already.  It's related to fund cuts and lack of not producing enough irradiated flies to keep in check.  It may take decades to re-beat back provided there is a new concentrated effort from the US Government.

https://www.google.com/amp/s/www.wate.com/news/top-stories/what-is-new-world-screwworm-veterinarian-explains-potential-threat-to-livestock/amp/

[MU82]

From The AP;

The median pay package for CEOs rose to $17.1 million, up 9.7%. Meanwhile, the median employee at companies in the survey earned $85,419, reflecting a 1.7% increase year over year.

[MU82]

From the NYT DealBook e-newsletter:

Even as consumer confidence wavered in recent quarters, American business leaders found reason for optimism. That C-suite exceptionalism appears to have faded though as President Trump's trade war and economic slowdown concerns now predominate.

The latest report by the Conference Board and the Business Council shows one of the biggest drops in C.E.O. confidence on record. The closely followed tally recorded that C.E.O. confidence in the second quarter dropped to 34 — (a score below 50 reflects a pessimistic mood) — from 60 in the previous quarter.

"All components of the measure weakened into pessimism territory," Stephanie Guichard, a senior economist at the Conference Board, wrote in a statement. "C.E.O.s' views about current economic conditions led the plunge, registering the largest quarter-on-quarter decline in almost 50 years."

She added: "Expectations for the future also plummeted, with more than half of C.E.O.s now expecting conditions to worsen over the next six months, both for the economy overall and in their own industries."

This shouldn't come as a big surprise. This past earnings season, corporate chiefs told analysts that tariff uncertainty had essentially paralyzed their business plans. A string of companies, including Mattel, Ford and Marriott pulled or lowered their guidance. Walmart said that the levies would most likely force it to raise prices, drawing an all-caps rebuke from Trump.

The upshot: A majority of corporate bosses plan to freeze hiring and reassess investment, the survey found. The share of C.E.O.s expecting to increase their work force declined to 28 percent, from 32 percent. On capital spending, 26 percent plan to revise down those capital expenditures budgets; last quarter, 13 percent said the same.

Perhaps more ominously, 71 percent of respondents said they were bracing for "a brief and shallow U.S. recession" over the next 12 to 18 months.

[Jay Bee]

From The AP;

The median pay package for CEOs rose to $17.1 million, up 9.7%. Meanwhile, the median employee at companies in the survey earned $85,419, reflecting a 1.7% increase year over year.

These stats are almost as bad as "field goal %". As you know, the $17.1 million is a majority of at-risk "pay", much of which may be earned (but may wind up to be $0) over multiple years. It's an apples and oranges comparison, and calling it 'pay' in a particular year is disingenuous.

[Uncle Rico]

These stats are almost as bad as "field goal %". As you know, the $17.1 million is a majority of at-risk "pay", much of which may be earned (but may wind up to be $0) over multiple years. It's an apples and oranges comparison, and calling it 'pay' in a particular year is disingenuous.

With Central Planning in place, we really don't need CEO's anymore

[The Sultan]

With Central Planning in place, we really don't need CEO's anymore

The good news is that they will soon be able to feel the joy of manufacturing iPhones like the rest of us!

[MU82]

These stats are almost as bad as "field goal %". As you know, the $17.1 million is a majority of at-risk "pay", much of which may be earned (but may wind up to be $0) over multiple years. It's an apples and oranges comparison, and calling it 'pay' in a particular year is disingenuous.

Yes, they do benefit greatly from engineering higher EPS through huge buyback programs. Thanks for pointing that out.

And as you know, the "risk" is so huge that if most of these CEOs fail completely, they will still receive massive golden parachutes.

[Shaka Shart]

Lol

https://www.reuters.com/business/autos-transportation/tesla-executives-questioned-musk-after-he-denied-killing-25000-ev-project-2025-06-02/

[dgies9156]

Taking Mae and Mac public would be something

This needs to be done. Period! The government needs to get out of both of these firms.

If the private sector did its job, purchasing, packaging, properly grading and selling mortgage-backed securities ("MBSs"), there would be no need for Freddie and Fannie and the now explicit guarantee of the federal government that come with Fannie and Freddie MBSs.

Freddie and Fannie were created in a different era, when capital was not as fungible as it is today and mortgage markets were largely local in nature. Both Fannie's and Freddie's ever-changing underwriting standards, a reaction to political pressure from Congress, were among the factors that led to the 2008 housing crisis.

Plus, if these two entities were liquidated in an IPO, the federal government might earn back some of the bail-out it made to Fannie and Freddie.

[The Sultan]

This needs to be done. Period! The government needs to get out of both of these firms.

If the private sector did its job, purchasing, packaging, properly grading and selling mortgage-backed securities ("MBSs"), there would be no need for Freddie and Fannie and the now explicit guarantee of the federal government that come with Fannie and Freddie MBSs.

Freddie and Fannie were created in a different era, when capital was not as fungible as it is today and mortgage markets were largely local in nature. Both Fannie's and Freddie's ever-changing underwriting standards, a reaction to political pressure from Congress, were among the factors that led to the 2008 housing crisis.

Plus, if these two entities were liquidated in an IPO, the federal government might earn back some of the bail-out it made to Fannie and Freddie.

Except under Trump's plan, the implicit guarantee of the federal government's backing just turns the clock back to pre-2008 when all profit was privatized with little downside risk. So the companies were incentivized to be more risky than they should have been.

[Jockey]

All this analysis means little. These things are being done strictly for EGO. These crazy moves will continue for the next 3 1/2 years (at least).

Everyone needs to stop with pretending this is normal.

[The Sultan]

All this analysis means little. These things are being done strictly for EGO. These crazy moves will continue for the next 3 1/2 years (at least).

Everyone needs to stop with pretending this is normal.

There have been proposals about doing this in every administration since they were placed into conservatorship back in 2008.

[dgies9156]

Except under Trump's plan, the implicit guarantee of the federal government's backing just turns the clock back to pre-2008 when all profit was privatized with little downside risk. So the companies were incentivized to be more risky than they should have been.

Much depends on what happens in Congress. The President cannot privatize Freddie and Fannie with an executive order. It takes an act of Congress and while I believe Freddie and Fannie need to be privatized, I also won't discount the lobbying power of both organizations on the Hill.

The federal government has been the biggest player in the housing finance market since the Depression. Congress and regulators screwed up the savings institutions business in the 1980s. They then screwed up Freddie and Fannie in the run-up to 2008. Ironically, federal involvement in housing finance is one thing the GOP and the Dems seem to agree on. When that happens, take cover and guard your wallet!

 

[dgies9156]

Cows exist to nourish me if I want to eat them.

If God hadn't wanted us to eat cows, he would not have made them so tasty!!!!!

[Uncle Rico]

If God hadn't wanted us to eat cows, he would not have made them so tasty!!!!!

God didn't make cows.  They evolved to become what they are today.

[dgies9156]

God didn't make cows.  They evolved to become what they are today.

Interesting take for a Evangelical Christian.

[Uncle Rico]

Interesting take for a Evangelical Christian.

We don't read the Bible

[The Sultan]

We don't read the Bible

It's woke.

[Uncle Rico]

It's woke.

That's what I hear