Let's talk to our geniuses. Art Laugher, former Reagan economist. Steve Moore, host of More Money on WABC radio.Arthur, how did I do. Did I get this right. I mean, profits are the mother's milk.>> You did great. >> The discount rate. I got I got it all in there, man.I learned it from you 50 years ago. >> You did it perfectly. You know, it's amazing, Larry, how both religion and stock prices are driven by profits.>> Religion. >> I'm sorry. I'm sorry.I had to say that. I've been preparing for that for days. I ...

Market Volatility and Gold Performance - The current market is characterized by unusual volatility, particularly in developed market currencies compared to emerging market currencies, which are performing relatively well [2] - Gold has emerged as the best performing asset class year to date, driven by several factors including investors hedging dollar exposure, its role as collateral for digital assets, and increased retail participation [2][3] - Historical data indicates that gold has similar returns to equities but with twice the volatility, a trend that appears to be continuing [4] Equity Market Dynamics - Despite some trade-related wobbles, the equity market is experiencing a "melt up" quality, inching towards new highs, while equity market volatility is at its highest level outside of recession years [5] - The current environment shows a significant upward movement in volatility, with a prevailing sense of euphoria in the market, attributed to a strong economic contribution expected to benefit other sectors [6] - GDP estimates for Q3 are projected at 3.9% with inflation at 3%, alongside expectations of interest rate cuts and deregulation, which are contributing to heightened market optimism [7]

Lenders may be well-placed to make the most of a wave of Trumpian deregulation. But whether they do so depends on three big “ifs” https://t.co/QYp5ehoqt6 ...

Core Insights - US bank earnings appear solid with strong balance sheets, indicating a stable financial environment for the banking sector [1] - Concerns have been raised regarding the rapid growth of private credit, which may pose risks to the financial system [1] - The uneven deregulation in the financial sector could lead to vulnerabilities, particularly in the context of economic interventions [1] - The US intervention to support Argentina's peso without IMF-style safeguards is viewed as a risky approach [1] Summary by Category Banking Sector - US banks report solid earnings and maintain strong balance sheets, reflecting overall financial health [1] Private Credit - The fast growth of private credit is highlighted as a potential risk factor for the financial system [1] Regulatory Environment - There is an indication of uneven deregulation within the financial sector, which could create instability [1] International Intervention - The US's unilateral intervention to stabilize Argentina's peso is criticized for lacking necessary safeguards typically provided by the IMF [1]

We start with the state of US banks, as earnings began rolling in this week. Those earnings give us a snapshot of how the financial sector did last quarter. But our special contributor, Larry Summers, takes us through the more sweeping changes we are witnessing.-It suggests that the big banks are building capital, and are in good shape, and have relatively strong balance sheets. And it makes the kind of financial crisis that we had in 2008 less likely. But I don't think it's a fundamentally strong indicator ...

Economic Growth & Productivity - Right-wing politicians advocate productivity as the key to economic growth, driven by tax cuts, deregulation, and technological advancements [1] - Productivity growth, despite its benefits, may present fiscal downsides [1]

Funny thing about deregulation: It's greatly anticipated, long overdue and nowhere in sight, says @Clive_Crook (via @opinion) https://t.co/LVOOh8zrZL ...

Group 1 - The overall sentiment among CEOs in the banking sector is optimistic, with a notable increase in financing activity and M&A business, indicating a healthy deal-making environment [5][7] - Jamie Dimon's comments suggest that while the market may be overvalued, there is still a sense of optimism about business growth and deregulation, which could positively impact the economy [4][3] - Goldman Sachs reported its most profitable year ever, highlighting the favorable conditions for banks and the overall economic environment [6] Group 2 - The commentary from various CEOs indicates a cautious optimism regarding the economy, with potential for rate cuts by the Federal Reserve, which could further boost stock market performance [7][8] - There is a concern about the stagnant job market, which may pose risks to economic growth despite the positive sentiment in the banking sector [9][8] - The depreciation on capital expenditures is identified as a significant driver for the economy, emphasizing the importance of investment in growth [10]

Core Insights - The article discusses the impact of changing political regimes in Washington on the economy, particularly focusing on the trend towards deregulation and the speculation surrounding its potential success [1] Group 1: Political and Economic Shifts - The shift in political regimes is influencing economic priorities, leading to speculation on the success of deregulation efforts [1]

Company Performance - Wells Fargo's stock initially fell due to disappointing net interest income, but they raised their fourth quarter net interest income guidance, maintaining full-year guidance at $47.7 billion despite higher expenses [2][3] - JP Morgan reported a strong quarter with investment banking fees up 17%, trading up 24%, equities up 33%, and deal-making fees up 16%, although the stock is considered expensive at 2.5 times book value [4][6] Market Trends - The asset cap lift for Wells Fargo is crucial for regaining lost market share, which was down 20% since 2017, and is expected to enhance profitability and market share as they invest in their business [3][6] - The current market environment is compared to 1999 rather than 1929, indicating a different economic landscape and potential for growth [8][10] Regulatory Environment - Deregulation is anticipated to create new growth opportunities for banks, with expectations that Basel 3 capital requirements will be adjusted, allowing banks to utilize excess capital for stock buybacks, dividends, and lending [11][12] - The capital requirements for banks are viewed as stronger now, with lessons learned from past financial crises influencing current regulations [13][15]