In the early 1990s the asset price bubble in Japan collapsed, it was the start of what later came known as the “Lost Decade” or even “Lost Score”. The Financial Services Agency (FSA), the Japanese supervisory and regulatory institution, waited more than a decade before obliging Japanese banks to take the losses on non-performing loans.
If things are going according to plan for the Trump administration, which seems to be a rarity since the president’s inauguration in January, American citizens are to receive tax cut around Christmas. The alleged massive tax cut is primarily intended to benefit Americans with middle and low income, according to Trump. When we take a look at the concept of the different versions of this ‘Tax Cuts and Jobs Act’ however, one may ask the question who actually benefits.
“Sleep is my greatest enemy.” – Reed Hastings, CEO Netflix
“Congratulations: you have found an American willing to say he is pro-Trump”, dixit Gary Shapiro. Shapiro is CEO of the Consumer Technology Association, representative for over 2000 tech corporates such as Google and Amazon. Shapiro is an advocate of innovation without borders.
With a market cap of approximately €87.4 billion and a current all-time high price of €5270 (Wilmoth, 2017), Bitcoin’s price and success seem to be heading through the roof and beyond. While hitting the €1000 mark in mid-January , the price has since increased with almost 430%. Taking into account these extraordinary numbers, the main question arises whether Bitcoin will be the next speculative bubble.
“Blockchain will do what internet has done, 20 years ago.” (Every Blockchain expert, ever)
Now that we have seen the first acts as Trump in his position as president of the United States, the time is now to reflect on his economic ideas and first acts. Obviously, it remains unclear how Trump will fill in the rest of his presidency, but we already are able to have a glimpse of what Trump is going to do the following four years.
A group of Mexican investors have (jokingly) opted the idea that their government should buy Twitter. This may seem like a surreal trade, but the explanation makes sense. Since Donald Trump’s election as the 45th president of the United States in November of 2016, the Mexican government has spent a large portion of the national reserves on protective measurements for their national currency, the peso. The Mexican investors noticed a relation between the anti-Mexico tweets sent out by Donald Trump and the real-time value of the currency. The exchange rates took large drops for every tweet. The Mexicans said that the government would be better off buying Twitter, so they could stop Trump from tweeting, to eventually save the peso. This transaction would in the end be cheaper than all the protective measurements.