One big problem with the world media today is that sensationalism and fear drive the news flow. This is nothing new, and I have certainly said this before as it relates to the market, but this time, I am saying it as it relates to our lives.
I read something two days ago that immediately struck me as so dangerous, it required further media exploration, but so far none is forthcoming. In fact, it appears the information is benign, ho-hum, and otherwise a given. Drones are coming to a neighborhood near you if Amazon, UPS, and the government have their way.
- Selecting “Drone Delivery” instead of “Next Day Air” or “Standard Shipping” might become a very real option, and not just from Amazon.com. After Amazon announced its plans for Amazon Prime Air on Sunday evening, UPS confirmed to ABC News that it, too, was experimenting with drone delivery.
I am not an alarmist. Candidly, I believe Big Brother’s coming is inevitable, but what bothers me is the lack of a challenge from the media. Maybe, it is all publicity for Amazon and UPS and, maybe, the government will never approve such a hair-brained scheme. Then again, maybe the government will, as it presents a perfect opportunity to gather more information on both American and not citizens. So there!
The market is still doing the good news is bad news thing, so I guess we will have to live with it just a bit longer. In the meantime, be assured the global economy is coming on slowly but surely.
- An improving global economy is boosting demand for U.S. exports. In October, exports increased 1.8 percent to $192.7 billion. That was the highest on record and snapped three straight months of declines in exports.
Back in the good ol’ USA, consumers are still coming on, even as the housing market takes a well-needed rest, a time to rebalance, as markets tend to do.
- Applications for U.S. home loans tumbled in the latest week, led by a sharp slide in refinancing applications, data from an industry group showed on Wednesday. The Mortgage Bankers Association said its seasonally adjusted index of mortgage application activity, which includes both refinancing and home purchase demand, sank 12.8 percent in the week ended November 29.
It seems counterintuitive, but a slide in mortgage applications is a good thing right now. The housing market needs some cooling off time, and this is it. Another reason not to worry so much about this data is that the money is apparently flowing elsewhere because interest rates are dropping.
- U.S. consumers are taking out bigger car loans with longer pay-back periods as lenders offer lower interest rates and accept borrowers with weaker credit ratings, a report released on Wednesday showed. The average loan on a new car climbed to $26,719 in the third quarter, up by $756 from a year earlier, and the most in at least five years, according to data collected by Experian Plc. Despite borrowing so much more, average monthly payments on new car loans rose only $6 to $458.
On the one hand, more borrowing is scary, given what we went through in 2008, but, on the other hand, getting more money for less interest with a minimal rise in payments is, well, the American way. In fact, it is the global way anymore. Without credit, we have no economic activity and companies such as Amazon and UPS could never even think of investing money in extremely expensive technology, such as drones, to deliver a package. Heck, maybe the reality is just that – what will keep this idiocy back is the cost, simple as that.
Trade in the day; Invest in your life …
