Professor Elam

Monday  10/14/2024

One of my do not miss tv shows it the WSJ Editorial Board Report on Fox News Sat afternoon 2 00 PM CST.

Dan Heninger observing the  62% six year raise gratned the Longshoreman suggested this was the start of another  1970s wage price Spiral..

Once a union gets a large settlement like that, others want to cash in. Already the Machinists are striking Boeing. No doubt they think the Govt will not let Boeing fail, yeah well we all thought that about Lehman. Now Boeing is laying off 17,000. If its credit is fruther downgraded it will be lower than investment grade BAA and fall to junk. That eans a lot of funds who must maintain  investment grade status will dump Boeing debt. And so the bond price falls and Boeing has to payu  a higher interest rate. Ouch.

Dan is probably right.