Abuse of the Paycheck Protection Program

One of the components of the CARES Act is the Paycheck Protection Program.  This program offers a loan to small businesses that are struggling to stay afloat.  The goal is to keep employees on the payroll and provide assistance for other operating expenses such as rent, mortgage interest and utility payments.  If a struggling business … Continued

Margin Calls

According to Investopedia, a margin call arises when an investor borrows money from a broker to make investments.  When an investor uses margin to buy or sell securities, he pays for them using a combination of his own funds and borrowed money from a broker.  A margin call is triggered when the investor’s equity, as a … Continued

Short Squeeze

A short squeeze occurs when a rapid rise in the price of a stock, precipitated by a lack of supply and an excess of demand, pressures short sellers to cover their positions on a stock, resulting in buying volume that drives the stock price up, further pressuring the remaining shorts.  Factors precipitating pressure on short … Continued

What is ESG?

ESG stands for environmental, social, and governance, which are the three central factors in measuring sustainability and societal impact of an investment.  The concept of socially responsible business behavior is not new; it is controversial and is difficult to measure.  Investors should be aware of this issue and recognize that, to a considerable degree, acceptance … Continued

Science Versus QED

Wikipedia defines science as “a systematic enterprise that builds and organizes knowledge in the form of testable explanations and predictions about the universe.” Wikipedia defines QED as “an initialism of the Latin phrase quod erat demonstrandum, literally meaning “what was to be shown”.  Traditionally, the abbreviation is placed at the end of a mathematical proof or … Continued

Michigan Auto Insurance Reform

We generally like to put out information that is helpful to all of our clients.  In this case, Michigan auto insurance reform only applies to our Michigan clients.  As a result, we are emailing this information to those clients that will be directly affected (i.e. current Michigan residents).  However, we have also opted to include … Continued

Peer Review

With the world’s attention focused on Covid-19 and potential therapies and vaccines, it might be a good time to reflect on the quality of discourse relating to how the issues created by the pandemic might be resolved.  It is difficult for investors, the media, and others to evaluate “scientific” commentary for accuracy in the absence … Continued

Federalism and Covid-19

Wikipedia defines Federalism in the U.S. as “the constitutional division of power between the U.S. state governments and the federal government.”  Federalism is complicated in practice and has been an area of contention since the beginnings of the U.S.  Over time, power has shifted away from the states and toward the national government. While still … Continued

“The Way We Were”

This is the title of a successful 1973 film starring Barbra Streisand and Robert Redford.  The movie focused on how a mutual attraction in college changed during and after WW2, giving rise to the fundamental premise that the two were no longer the way they were. Today we are in the middle of a serious … Continued

Who’s Been Sleeping In My Bed?

This question is derived from the British 19th century fairy tale, “Goldilocks and the Three Bears,” and is now very relevant to the concerns of potential travelers.  Most leisure travel usually involves one or more nights away from home.  As long as consumers are concerned about who will have previously occupied the room they are … Continued

Second Guessing

Now that baseball is in a health hiatus, second guessing, also known as, I told you so, 20/20 hindsight, etc., has become the national pastime.  The fact that we have a national election in less than six months may have something to do with that.  But this blog is not about politics. It is easy … Continued

Is Congress Doing Its Job?

It is no secret that Congress is currently very polarized and seemingly unable to do much in a truly bipartisan manner.  But Congress is made up of politicians, and in the words of Otto von Bismarck, “politics is the art of the possible, the attainable – the art of the next best.” Political polarization is … Continued