🐂 Wrath of Khan

Markets

Stock markets experienced a significant decline yesterday, marking the Dow's worst day since March. This decline was prompted by new data revealing a decrease in home sales and consumer confidence, which raised concerns among investors about the possibility of an impending recession. Additionally, Amazon's stock price saw a decrease following the filing of the long-anticipated anti-monopoly lawsuit by the FTC against the company (we will delve into the details of this lawsuit later).

Why Now Is a Horrible Time to Refinance Student Loans

With the return of federal student-loan payments on the horizon, some borrowers might be considering refinancing their loans as a way to save money. However, for many, this may not be a wise decision.

Due to the Federal Reserve's recent move to raise interest rates to levels not seen in decades and the availability of new government programs that offer low payment options and potential debt forgiveness, personal finance experts are advising that refinancing would be advantageous only for a select group of borrowers.

Jack Wallace, the Director of Governmental and Lender Relations at Yrefy, a private student-loan company, emphasized that refinancing doesn't make financial sense for many borrowers, especially those with undergraduate loans, who represent the majority of student borrowers.

Starting in October, tens of millions of student-loan borrowers will face the obligation to make payments for the first time since the Education Department initiated a payment pause in March 2020.

Labor

Why Biden and Trump are both talking to labor workers

President Joe Biden made history by becoming the first sitting U.S. president to join workers on a picket line when he stood in solidarity with striking members of the United Auto Workers (UAW) union in Michigan. During his visit, he expressed his support for the striking workers and emphasized that they deserve a substantial pay raise.

Meanwhile, former President Donald Trump, who is likely to run for the presidency again in 2024, is also visiting Michigan. He plans to address current and retired UAW members, but notably, this event is taking place at a nonunion auto supplier.

These concurrent visits are occurring in the midst of a significant strike involving 18,300 UAW members at selected Ford, GM, and Stellantis facilities. Both Biden and Trump aim to garner support from these workers, encouraging them to display campaign bumper stickers on their personal vehicles in anticipation of the 2024 presidential election. Michigan is seen as a pivotal state that could heavily influence the election outcome.

Despite UAW President Shawn Fain's appearance alongside President Biden on the picket line, the union has not yet endorsed Biden for reelection. One key point of contention is the shift toward electric vehicles (EVs). Biden supports EVs for environmental reasons, but the UAW is concerned that EV plants may require fewer workers and offer lower wages.

Trump, who is prioritizing speaking to auto workers over participating in a GOP debate, has criticized Biden's EV policies, predicting that they will harm the U.S. auto industry and lead to cars being manufactured in China.

However, despite Trump's criticisms and Biden's challenges with the UAW, the union has not leaned towards supporting Trump either. Union leaders have criticized Trump for what they view as unfulfilled promises to create new automotive jobs during his presidency and for appointing officials who diminished union influence. UAW President Fain has stated that he will not be meeting with Trump during his visit to Michigan.

In the broader context, winning Michigan is crucial for any presidential candidate, and recent polls suggest that Biden has been losing some support among union rank-and-file members, while Trump has gained ground. An August poll by a Michigan firm indicated that unionized workers were slightly more inclined to support Trump than Biden, despite their preference for Biden as recently as June.

Politics

Judge rules Trump committed fraud in his real estate business.

A New York judge has issued a ruling stating that Donald Trump and his family company engaged in the practice of inflating the value of Trump Organization properties over the years, which includes properties like Mar-a-Lago. This alleged inflation was done to secure more favorable terms from banks and insurance companies. This ruling represents a victory for New York Attorney General Letitia James, who is pursuing a civil suit against the former president seeking a $250 million penalty. The ruling essentially establishes Trump's liability for fraud before the trial begins.

Prior to this ruling, Trump had already initiated a lawsuit to have the judge removed from the case. However, if this effort is unsuccessful, a trial is scheduled to commence next Monday.

Law

FTC sues Amazon in landmark antitrust case

The FTC (Federal Trade Commission) and 17 states have jointly filed a comprehensive lawsuit against Amazon, alleging that the trillion-dollar e-commerce giant has engaged in illegal monopolistic practices. This lawsuit marks the fourth legal action taken by the FTC against Amazon this year and is arguably the one with the most significant implications for U.S. antitrust laws and the convenience of obtaining items like inflatable cows within 24 hours.

What are the key allegations in the lawsuit? The FTC and state attorneys general contend that Amazon has abused its dominant position by penalizing third-party sellers if they offer lower prices on competing platforms. This alleged practice has resulted in higher prices for consumers. Additionally, the lawsuit claims that sellers on Amazon's marketplace were coerced into using Amazon's logistics and advertising services, facing penalties such as reduced visibility if they refused to comply.

What are the FTC's objectives in this case? While the FTC has sought to break up tech giants like Google and Facebook, it's not entirely clear if that's the ultimate goal in this lawsuit against Amazon. The FTC is primarily seeking a permanent injunction to halt the alleged misconduct. An Amazon spokesperson has countered, suggesting that prices could rise, and delivery speeds might slow down if the FTC's actions prevail.

Taking a broader perspective: FTC Chair Lina Khan first gained prominence in 2017 for a paper she wrote as a law student, critiquing the U.S. antitrust framework's inadequacy in addressing Amazon's monopolistic practices. Since her appointment by President Biden, Khan has been leading the agency's efforts to address the concentration of power within Big Tech, a movement often referred to as a "techlash."

Tech

Happy 25th bday Google

Google is celebrating its 25th anniversary, and it's a moment when the company is transitioning into adulthood, dealing with life's milestones like the end of parental health insurance and the engagements of friends. One of Google's most iconic features is the Google Doodle, and it has an interesting history.

The Google Doodle made its debut in August 1998 when the company was still in its early stages, and only employees could access its website. Initially, it wasn't intended to be a permanent feature. Co-founders Larry Page and Sergey Brin added a stick figure behind the second "O" in the Google logo to humorously inform their staff that they would be out of the office (OOO) attending the Burning Man festival. Despite the usual reservations that marketers have about changing logos, Google continued to experiment with new designs, and today, a team of illustrators and engineers, aptly named "doodlers," has created over 5,000 Doodles.

Here are some noteworthy Google Doodles:

1. Gerald "Jerry" Lawson's 82nd Birthday (December 1, 2022): Google paid tribute to the late Jerry Lawson, who played a crucial role in developing the first home video game system with changeable game cartridges. This Doodle was interactive and allowed users to edit their own games.

2. Earth Day 2012: In a departure from digital art, Google celebrated Earth Day by planting an actual garden on its campus and capturing its growth through photographs.

3. 119th Anniversary of the Ice Cream Sundae (2011): Sometimes, Doodles are simply fun and lighthearted, as was the case with this design.

Google maintains an archive of every Doodle, providing a nostalgic journey through its history, which you can explore if you're looking for some additional intriguing Google searches.