Apple spoke to investors today: expect slowing sales numbers. The NY Stock Exchange promptly reacted in a negative manner: stocks slid almost 3% to continue a direction that began over 3 months ago and accelerated in December of 2018. So, where are we going with the economy in 2019? Time will tell and nobody really knows: who can accurately predict the future anyway?
The tech sector took it on the chin, with big players taking big hits. This can mean that some pundits were correct saying that tech companies had out run profits and new product development. Perhaps this has contributed to investors' concern of forward earnings.
In addition to the tech sector, the banking sector has more fallout from the Wells Fargo Bank situation. A settlement was announced that would cost the bank $585 millions for retail customer activities including ID theft, insurance fraud, and loan irregularities. Apparently, the California State Insurance commissioner has more investigations underway concerning the Bank, home based in San Francisco. A consumer advocacy group says the Bank should be broken up and sold off as it is a criminal enterprise. The Mayor of Tahoma agrees with this position. This corporation, which raked in over $20 billions in profits last year, cannot be fixed. It is rotten to the core and its leadership hides under the corporate immunity afforded these institutions and their leaders. It is time to correct these laws when we have prisons filled with perps who stole mere thousands from various sources. Why are bankers immune from criminal prosecution? It's not right nor is it fair.
Regulators have to get real and recognize the insidious nature of large corporate structures that have evolved from once competitive markets to market-dominating monopolies. The time is passed for the OCC and the Treasury Secretary to act. Needless to say, when the Democratic presidential candidate inevitably wins in 2020, things will change in the financial and banking sectors. Elizabeth Warren is just one of many and she has the experience in the consumer protection zone. Today, the House of Representatives elected former Speaker Nancy Pelosi to be its current Speaker. While she will focus on dealings with Pres. Trump, she will hear from all over the country to rein in banking and finance. Both sectors deserve the attention of Congress.
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