American Consequences - June 2017

What Moved the Market

MAY 24 CBO releases Obamacare Repeal analysis The focus of the report was on how many people stand to lose coverage (23 million) and its deficit effect (cut $119 billion through 2026). A rational person would ask why all of this was not scored before the first vote in the House and subsequent keg party in the Rose Garden. MAY 25 OPEC extends oil supply cut At this point, the markets expected this and it has become a “sell the news” type of event. So the trend likely remains positive near term but prices can’t go up indefinitely. You do have to have a pull back every now and again.

MAY 26 General Motors cheating on emissions New report that General Motors (GM) accused of cheating on emissions standards. The lawsuit is directed at their diesel truck unit. Fiat Chrysler has been dealing with similar accusations and has agreed to pay an $800 million fine. That is just the beginning. We have been pounding the table about lower used car prices and the damage that is doing to lenders and rental car companies. Diesel is the next shoe to drop. Couple that with cheating on emissions and this mess is morphing into a wild fire. MAY 30 Barron’s cover story on Ford The article is excited over the

EDITORS: Scott Garliss John Gillin Greg Diamond

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10 | June 2017

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