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Your morning briefing of the latest business headlines
The end of October is filled with World Series hype, fall foliage, costume parties, and spooky Halloween movies. Nothing is spookier than not realizing what the hell is going on in the world, and this week was full of headlines. Here's the big hitters that you might want to be in tune with.
US Treasury Secretary Janet Yellen has proposed a tax on unrealized capital gains
Former Chair of the US Federal Reserve and current Treasury Secretary, Janet Yellen, has decided she has come up with a "solution" for taxing the rich. Or did she create a possible horror story? Yellen wants investors to pay a tax on the increase in value of stock every year, even if it is not sold, proposing a tax on unrealized capital gains.
Capital gains is not a new phenomenon. It's a tax on the profit that investors ion the sale of assets. When you sell a share and make a profit, you pay the tax on the profit. Currently, the rate is as high as 37%, based on the type of asset, the income of the person investing, and how long they have held the stock.
Broken down in simple turns. Say if you buy $TSLA at $1000 and it shoots up to $5000 and then dips back to $1000, you would owe taxes on the $4000 profit that you never made. This will destroy people and tank the market completely. Buckle up.
Tesla Stock skyrockets as Elon Musk makes a whopping $36 billion in one day
The clock was ticking for $TSLA stock to surge past $1,000 per share, and the feat occurred when the company's valuation surged past $1 trillion dollars. The stock hit record high at $1,024 per share, after rent-a-car company Hertz ($HTZ) announced that they were going to order 100,000 Tesla cars. Kind of crazy for a company that announced bankruptcy this past summer. The rise in net worth of Musk makes him have more money than the GDP's of Bolivia, Estonia, and Latvia. That's big time F-U money...
Crypto isn't going anywhere. Another meme token is going parabolic.
Everyone is talking about Bitcoin and Ethereum, but remember DogeCoin? Well it's rival meme coin is going parabolic this week. Shiba Inu ($SHIB) wants to be known as the “dogecoin killer.” It uses the name mascot as dogecoin, the Japanese Shiba Inu Dog meme. Shiba inu has surged more than 30% in the past day, hitting a record high above $0.00006. This pushes their market capitalization of more than $29 billion, making it the 11th-largest cryptocurrency. So much for "just a fad".
Chart: WeBull
E-Gaming continues its growth, as SPAC announces it's taking FaZe Clan public
Kids don't want to grow up to be athletes anymore, they want to be gamers. FaZe Clan is a youth-focused "gaming, lifestyle and media platform" that has taken social media by storm. Founded in 2010, they made their debut as a couple friends on Call of Duty making YouTube videos. A decade later and their valuation just hit the billion mark. The SPAC "BRPM" will take the gaming company public in 2022, making it one of the first of it's kind going public. The company’s stock is expected to be listed on NASDAQ under the new ticker symbol FAZE.