Trump approves tariffs on Chinese goods including $1 billion in bike products

[Gummee]

Originally Posted by HenryA

Not everyone in the bike biz is complaining:

https://www.bicycleretailer.com/indu...n#.W6GARxpOnmo

however many pages of doom and gloom and not one 'hey there's an opportunity to employ more Americans!'

...or even a 'hey! Let's open a Maquiladora on the MEX border to take advantage of the cheaper labor and still call it 'made in the USA.'

I get it, but like in everything else, there is an opportunity. It may make sense to get the steel mills back up and working. Get the textile mills back up and working. etc etc etc

M

[Llewellyn]

Originally Posted by Gummee

however many pages of doom and gloom and not one 'hey there's an opportunity to employ more Americans!'

...or even a 'hey! Let's open a Maquiladora on the MEX border to take advantage of the cheaper labor and still call it 'made in the USA.'

I get it, but like in everything else, there is an opportunity. It may make sense to get the steel mills back up and working. Get the textile mills back up and working. etc etc etc

M

Unfortunately it's not as easy as simply walking in, switching the lights on and start producing steel, textiles etc. If only it was.

[nickl]

Originally Posted by echappist View Post
More like Sub-Saharan Africa

those rare earth metals don't make themselves easy to find

Originally Posted by redir

There are plenty in Afghanistan ..... Hmmmmmmmm

Starting any major venture in Afghanistan is a losing proposition. Poor infrastructure, unskilled labor, nonexistent industrial support base and other minor issues like an ongoing war with the distinct possibility of the Taliban retaking parts of the country it doesn't already control.

[sailorboy]

Originally Posted by redir

There are plenty in Afghanistan ..... Hmmmmmmmm

Cool. I can't wait to see what kind of camouflage uniforms the Apple, Microsoft and Samsung soldiers will be wearing while guarding all those mining sites.

[93KgBike]

Originally Posted by veloduffer

The economy can’t afford to slowdown. There is so much leverage/debt in the market, and at leverage multiples that are higher than at the Financial Crisis. ... This will spark the recession, which will be corporate-led. We need the economy to continue so firms have enough time to reduce their debt (de-lever).

You've just described a Ponzi scheme.

By recession, you mean collapse. By de-lever, you mean taxpayer bailout.

And I'm not disagreeing with anything you wrote, except debt covers all sins, not growth. The problems arise when the margin calls come in, and no-one will buy your debt.

It's deja vu all over again.

[pbarry]

The market has rebounded since winter, but it's fickle and nervous after the beginning of summer. jmo.

[93svt96]

Originally Posted by Gummee

however many pages of doom and gloom and not one 'hey there's an opportunity to employ more Americans!'

...or even a 'hey! Let's open a Maquiladora on the MEX border to take advantage of the cheaper labor and still call it 'made in the USA.'

I get it, but like in everything else, there is an opportunity. It may make sense to get the steel mills back up and working. Get the textile mills back up and working. etc etc etc

M

We need to bring back more manufacturing to the USA. I won't buy anything from a foreign country if I have a choice. I am not buying a Toyota because it's built in Texas the big money ( profits) go over seas. My Ford's run just fine and so do my Maytag appliances. Sure they might be assembled from foriegn parts in a foreign country but I believe supporting American companies keeps more money here. Maybe it's a global economy but I would rather support America's economy.

[TonyG]

Originally Posted by Gummee

however many pages of doom and gloom and not one 'hey there's an opportunity to employ more Americans!'

...or even a 'hey! Let's open a Maquiladora on the MEX border to take advantage of the cheaper labor and still call it 'made in the USA.'

I get it, but like in everything else, there is an opportunity. It may make sense to get the steel mills back up and working. Get the textile mills back up and working. etc etc etc

M

https://www.bloomberg.com/news/artic...ear-in-austria

How Just 14 People Make 500,000 Tons of Steel a Year in Austria
The industry is losing its role as a big job creator.

Thousands or tens of thousands of steel jobs is like Mexico paying for "the wall".

.

[93svt96]

Originally Posted by TonyG

https://www.bloomberg.com/news/artic...ear-in-austria

How Just 14 People Make 500,000 Tons of Steel a Year in Austria
The industry is losing its role as a big job creator.

Thousands or tens of thousands of steel jobs is like Mexico paying for "the wall".

.

Get the textile Mills working etc etc. Not just steel

[TonyG]

Originally Posted by 93svt96

Get the textile Mills working etc etc. Not just steel

Well "How many workers to produce steel" is the only google search I did so far :-)

[93svt96]

Originally Posted by TonyG

Well "How many workers to produce steel" is the only google search I did so far :-)

I'll take 14 more jobs

[cmg]

getting manufacturing back in the usa isn't go to happen over night, not even in this prez's term. it's about revenue generation. population pays, govt collects, jobs aren't coming back. corporations loose profits, balk and tell prez to ease off. maybe in a decade.......

[93svt96]

Iam sure it equates to much more than 14 people to keep that running

[93svt96]

Not overnight is fine , I don't expect that.

[veloduffer]

Originally Posted by 93KgBike

You've just described a Ponzi scheme.

By recession, you mean collapse. By de-lever, you mean taxpayer bailout.

And I'm not disagreeing with anything you wrote, except debt covers all sins, not growth. The problems arise when the margin calls come in, and no-one will buy your debt.

It's deja vu all over again.

Except who is the gov't going to bail out? These loans are being funded by non-banks (institutional investors like funds, ETFs, insurance companies, private capital) that are all outside regulation -- shadow banking. Unless the Fed lets bank reduce their capital requirements so banks can lend again....

You're right about the margin call. The leveraged loan market is now larger than the high yield bond market and since it is a shorter-term market (3-5 yrs) than bonds, who is going to refinance these loans in 2020-2022. The combined speculative grade/junk market is about $2.6 trillion (bonds & loans) and there's at least $1.5 trillion of debt coming due in the next three years. And to make things worse, borrower's capital structures became loan only with no subordinated, unsecured debt underneath. So all the firm's assets are pledged and new capital (DIP financing) would be reluctant to refinance or lend without security. There could be a lot more bankruptcies and liquidations than the last 3 cycles, which would lead to much higher unemployment (higher than the 10% at the peak in 2009).