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What Happens When a Country Accumulates Too Much Debt?
When debts become very large and there is an economic downturn and the empire can no longer borrow the money necessary to repay its debts, the financial bubble bursts. This creates great domestic hardships and forces the country to choose between defaulting on its debts or printing a lot of new money. It always chooses to print a lot of new money at first gradually and eventually massively that devalues the currency and raises inflation.For the Dutch, this was the financial crisis brought about by financial ...
X @Bloomberg
Bloomberg· 2025-07-09 16:18
Changing norms about which companies have access to equity finance means more companies are going public without cash flows that cover their expenses. If tariffs lead to a downturn, that's a big threat to equities and the economy https://t.co/C0trRYpBeX ...
X @Bloomberg
Bloomberg· 2025-07-01 03:50
Over the past couple of years, European and American luxury brands have faced falling sales in China—one of their key growth markets for decades—as mainland consumers grapple with an economy devastated by a collapse in real estate prices.In that same period, upstart domestic jewelry brand Laopu Gold has prospered with a growing range of gold rings, necklaces, bracelets and more aimed at the aspirations of a bruised middle class. Read more here: https://t.co/kKd6V75fu8📷: Lam Yik/Bloomberg ...
Trump’s immigration crackdown will cause ‘economic downturn’: Hispanic Construction Council head
MSNBC· 2025-06-13 18:47
Welcome back. White House borders are Tom H. Homeman is promising to flood the zone with ICE officers at work sites across the country as protests against ISIS immigration raids continue.It's already setting off a whole new wave of panic for small businesses. In fact, one roofing company owner in Florida told our local affiliate NBC 6 that ICE detained a third of his workers, apprehending them when they were on their way to a roofing job. I want to bring in George Kario, CEO and co-founder of the Hispanic C ...
JPMorgan CEO: ‘Real Chance' US Economic Numbers Will Dip
PYMNTS.com· 2025-06-11 10:42
The head of America’s largest bank has a gloomy forecast for the U.S. economy.By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions .Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.“I think there’s a real chance numbers will deteriorate soon,” J.P. Morgan Chase CEO Jam ...
Why Brinker International Stock Plummeted by Almost 17% This Week
The Motley Fool· 2025-05-02 21:45
Core Viewpoint - Brinker International's stock price fell nearly 17% over the past week due to a quarterly earnings report that did not meet investor expectations, compounded by several analyst price target cuts [1][6]. Financial Performance - For the fiscal third quarter of 2025, Brinker reported revenue of just under $1.43 billion, marking a 27% year-over-year increase and surpassing the average analyst estimate of $1.37 billion [2]. - The company's GAAP net income more than doubled to $119 million, while non-GAAP adjusted earnings per share rose to $2.66 from $1.24, exceeding the consensus projection of $2.49 [4]. Market Sentiment - Investors are concerned about the impact of the current trade war on the U.S. economy, particularly regarding nonessential spending like restaurant meals, which are often the first to be cut from household budgets during economic tightening [5]. - Analysts from Wells Fargo and Barclays have reduced their price targets for Brinker, with Wells Fargo lowering its target to $150 from $165 and Barclays to $155 from $165, while both maintained hold recommendations [6]. Growth Potential - Despite current market concerns, Brinker has demonstrated impressive growth in a challenging restaurant industry, suggesting that it has the potential to survive and thrive during economic downturns [7].
Why American Airlines Stock Is Falling Today
The Motley Fool· 2025-04-21 18:42
Core Viewpoint - Wall Street is increasingly concerned about the economy's direction, leading to a sell-off of companies, particularly American Airlines, which is seen as vulnerable to a downturn [1][2]. Industry Overview - Airline stocks are cyclical, performing well in good times and declining when consumer confidence wanes, as households prioritize essential spending over vacations [2]. - Historical recessions have led to the failure of several airline brands, indicating the industry's vulnerability during economic downturns [2]. Company Analysis - American Airlines is currently healthier than some past failed brands but is more exposed than its peers if economic conditions worsen [3]. - The airline entered the pandemic with a higher debt load compared to rivals Delta and United, which may impact its recovery [3]. - American Airlines trades at an enterprise value of over 9 times its EBITDA, significantly higher than Delta's 6.9 times and United's 5.5 times, indicating a potential overvaluation [4]. Market Sentiment - Despite the overall health of the airline industry compared to previous downturns, American Airlines' efforts to catch up with competitors may be hindered if conditions deteriorate [5][6]. - Investors are cautious about American Airlines' stock ahead of its first-quarter results and outlook for 2025 [6].