Wednesday, May 9, 2012

Things I like about the US Economy;

Recent surveys show CEOs and salespeople are feeling confident about the future,
Tax receipts are higher than anticipated in most states, indicating greater taxable activity in the private sector
Commodity prices are stable to flat
Interest rates are low and will remain low for at least a year

Things we are going to have to learn to live with in the US economy;

Higher than normal unemployment
Sluggish housing and real estate sector
Continual cut back in the public sector both in services provided and employee benefits

Things I worry about (domestic edition);

People running for office or actually in office who advocate the exact same policies that created the 2008 meltdown
Unreasonable belief in what Paul Krugman terms the “confidence fairy” (This is the theory that if we adopt austerity measures that slow our economy, small businesses will run out and hire people)
Moody’s Investor Service in an attempt to make people forget their incompetence and contribution to the financial crises will do something really stupid even for them. (downgrade everyone and everybody just to keep their name in the news)

Things I worry about (international edition)

Nothing has been done about the euro situation.
Everybody is in agreement about the solution to the Greek crisis except the Greeks
The political reaction to the bad choices the European and English authorities made when faced with stimulus / austerity options two years ago

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