The Daily Alpha: Alternative Thinking on Jeff Bezos’ Space Blastoff, “Lucky” Millennials, and State

The Daily Alpha: Alternative Thinking on Jeff Bezos’ Space Blastoff, “Lucky” Millennials, and State

Garrett Baldwin

June 2, 2016

“First soak the rich. Then subsidize the richest. Meet the progressive state business model.”

The Wall Street Journal has no love for Connecticut Governor Dannel Malloy.

That’s not even a quote. That’s the subhead to today’s blistering op-ed piece titled “Connecticut’s Hedge-Fund Bribe.”

After the state taxed General Electric out of the state – and the industrial giant fled to Massachusetts – the Governor signed away $22 million in taxpayer money to keep Ray Dalio and Bridgewater in the state. The Hartford Current called the deal great for the state – but this isn’t even an op-ed piece. This is a pure advocacy article written by someone in a PR shop defending the allocation of taxpayer money to a hedge fund that doesn’t need the money.

The good news is that this piece really exposes the progressive lie about tax rates.

The WSJ doesn’t pull any punches about how they have followed the Illinois and New Jersey business model, which has driven many people from the states over the last decade.

“So here is the new-old progressive governing model: Raise taxes relentlessly in the name of soaking the 1% to pay off government unions,” the editorial board writes. “When that drives people out of the state, subsidize the 0.1% to salvage at least some jobs and revenue. Ray Dalio gets at least some of his money back. The middle class gets you know what.”

"Earth will be zoned residential and light industrial. You shouldn't be doing heavy energy on earth. We can build gigantic chip factories in space."

That’s Amazon.com CEO Jeff Bezos.

This is the latest Bezos’ public statement on futurism and what the world must do to stop his prophesy of doom fueled by a lack of resources here on planet earth.

His grand plans: Settle Mars, build 24-hour heavy-machine manufacturing centers in space that rely on solar power, and prevent a freeze of population growth.

Bezos’ dreamscape for the future sounds like what you would get if Philip Dick had chosen degrees in electrical engineering and computer science instead of daily amphetamines.

It’s not the predictions that Bezos says in public that Americans should want to know more about. It’s the ones that he doesn’t bring to the public – the ones on the cutting floor of his Ambien-fueled dream journal.


Bezos’ interview was highly interesting.

He also discussed Peter Thiel’s battle with Gawker, his thoughts on Donald Trump, the future of artificial intelligence, and Amazon’s competition with UPS.

Check it out here.

“With its speed, low prices, and mission to improve the patient experience, Theranos has a shot at shaking things up.”

That was Forbes praising blood-testing giant Theranos in 2014.

Yesterday, they were reading the company’s eulogy and slashing the net worth of its 32-year old founder from $4.5 billion to zero.

That’s right.


“Concentration works, it’s the way you should manage your portfolio. Hedge funds are an absolute return strategy and the way to optimize your potential outcomes is having your biggest positions in your highest conviction names.”

That’s Benjamin Dunn, president of Alpha Theory Advisors.

Evidence points that hedge funds are locked into their top 10 positions like never before. The rise of conviction has seen funds pour 68% of their assets into their top 10 stocks, according to Goldman Sachs.

“What we found is that 49% of young people think that if you get ahead in America nowadays its mostly because of luck rather than hard work. While only 45% say that it’s because of hard work. And this breaks down along party lines.”

Finally, the drink of the day is a Rusty Nail. Double up on the Drambuie because you’ll want that bad taste in your mouth instead of the one left behind from a poll from the New York College Republicans.

This was part of an interview on Wednesday on Morning Joe. The gut-punch comes at 3:50.

First, let’s get this one out of the way. This is a poll of Millennials – a group of people who have come up during the run up of the housing bubble, the ensuing housing crash, and now a recovery that has favored the top 1% of stockholders. That’s a fair point by Ed Morrissey, who likened this period to the late 1970s.

But if half of people under 35 really think that political candidates are going to solve the inequality gap by employing socialist policies, then those 49% of people are ripe for dictatorship and a lifetime of disenfranchisement.

The good news is that these voters supported economic liberalization and bottom-up growth policies instead of greater government intervention in the markets by a wide margin. The issue is that no one seems to be talking about these ideas or proposing them on the platform.

Be sure to check out the latest issue of Modern Trader and a very special offer for first-time readers. 


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