- It always seems impossible, until it's done.
- Nelson Mandela
End of the Month
This is the time to keep your fingers crossed if you are invloved with private credit. All the people who state this is not a worry from chairman Powell to the big CEOs of our largest banks are preparing their answers if proven wrong. Wells Fargo is the latest to admit excessive exposure to private credit. They have a whopping $36 billion conected to these firms. That, Dimon is not a cockroach, but an elephant.
Oh, yeah. It is not just the US market. We read in the UK that MFS and First Brands saw some cockroaches when they turned on the light.
It gets worse. Another reports states that a massive $14 trillion of previous debt in bonds is coming due. This is public and private debt. Not only is this going to create higher yields, but the squeeze could effect the new debt probem in private credit?
Related. The six largest banks gave their CEOs an average of $45 million in bonuses and yet, these same banks say that they can't afford to cap credit card interest at 10%. Yeah, right!
Peace in Iran, US/Israel Conflict?
If you saw the 10-point list on the negotiation table, you would realize that it is a Christmas list. Not only does the parties continue to provoke each other in the strait, but here are a few items on the agenda. Iran wants the US to drop all sanctions, close all military bases in the region and return control of the waterway back to Iran. Oh, yeah, they want the US to pay for all damages caused by our bombing. Houston, we got a problem. One might also think, why isn't the UN involved? Well, the chair recently said that the UN could collapse due to members not paying their dues.
Energy and Batteries
If you do not know already, China leads the world in battery production and development - by a lot. China has added more capacity in 2025 than the US has in its whole system. However, just like clouds begin to appear on the horizon, a change is coming. For the assholes who run Polymarket, never bet against the US when it comes to innovation. Ford may have thrown in the towel on EVs, but it is strongly into batteries, especially for storage. They have partnered with the Chinese giant, CATL. Separately, Ford says it already has ideas to build on from their partner, CATL.
They are not alone. Form Energy is leading a new approach with batteries. Their iron air battery can last longer than anyone else product. Battery power averages just 4-hours. This new battery can last 100-hours. Wow! Congrats!
There is also a new energy trend that combines batteries with gas. Why, you ask? The cost of batteries has fallen 75% since 2018. Big teck is looking into this to power their new data centers.
New Need and Old Law
The Mining Act of 1872 is being dusted. It allowed miners to use federal lands and not pay taxes on profits. Nothing like the rubber barons influencing government. Anyway, the new need for critical minerals is pushing the old act to get miners to dig tax free. Perpetua Resources is jumping into old claims. They may only have 5% of the minerals government wants, but the other 95% is gold.
Did you know that Wastewater Scan which is a project by Sanford and Emory University checks for virus nationwide through our utilities? This is a great behind the scene idea to reveal any new health problems. They may need it in Brazil.
BYD and Condescension
The EV auto maker is building a plant in Brazil. Sounds nice, but reality is another thing. BYD gives the best positions to Chinese workers and the menial work to Brazilians. It gets worse. They supply housing if you do not mine overcrowding? Get this. To apply for the job, Brazilians must pay an excessive deposit. They only get their money back if they stay on the job for 6-months. We stated before that China only seeks for China. They have supplied loans to poor nations with clauses that state if they default, China gets the collateral. In mamy cases this means taking that nation's port and harbor. Read the fine print!
Inflation
We said it was not going away. We add two more points. Diesel is over $5 per gallon and over $6 in Ca. Trucking is the source of shipping on land. The Hormuz Strait is not just oil. Did you know that over 20% of the world's fertilizer passes through the strait? Higher food prices will continue. Go to the library and get a cook book. You can learn to cook cheaper and healthier.
Bye, Bye, Powell
This is probably the last Fed meeting with Powell as chairman. He will probably play it safe with no rate change. Doesn't matter. If President Trump gets his way and we feel that he will, it is so long, hasta luego, adios, sayonra, arrivederci, baby! Trump will be happy, but we won't. We only will be happy when our meme is fulfilled, "End the Fed!"
Meanwhlie,
The NFL is doing its best to help the economy. They have minted over 100 new millionaires. We like the bonus for Logan Jones. He was the 57st. draft pick. The famous ketchup company, Heinz 57 is giving him free ketchup for the rest of his life. Lucky boy...Peace
