2015.02.15 The Bubba Show

Bubba talks about how the NASDAQ continues to rally. Badger comments that Apple is now so big it almost runs the index. Badger comments that the NASDAQ is much different now than the when it collapsed in 2000. Bubba says that he agrees that earns are building this bull market is and not stock speculation. Both agree at the top “this time won’t be different”.

Badger comments on the current state of solar power. Badger makes remarks about Tesla Motor Co. , and their ability to keep their cars running for an extensive period of time without recharging. Badger comments about Tesla’s poor sales performance in China. He states that a big problem there was the lack of charging stations.  Bubba comments that Oil is here to stay. Bubba talks about energy companies looking for green replacements.

Bubba brings up the topic of the Fed minutes. Bubba comments on the changing environment in the interest rate market. Badger remarks how global rates are now “racing to the bottom” and The U.S. has the highest rates in the world. Given this scenario and little inflation why raise rates at all? Bubba asks what a possible side effect of raising rates could be.  Badger replies that it could make the dollar even stronger and that could result in a loss of exports.

Bubba comments that subprime lending is coming back and this time it is in the car and personal loan market. Badger comments on the problem of extended payment cycles. Bubba thinks that the prevalence of easy money with no collateral could be an issue. Bubba states that any change in the employment rate could cause major problems in the credit market again.