Month: February 2011
Our economy can’t catch a break. Last spring the European debt crisis derailed any chance of a recovery; now it’s oil. Prices have surged due to fear of violence disrupting oil supplies and the fear that political instability in the…
Read MoreYesterday Ireland held elections; Fianna Fail (FF) lost to Fine Gael & Labour (FGL). When the Irish economy tanked in ‘08 FF had the government guarantee all bad bank debt; a dreadful decision resulting in a $93 billion bailout and…
Read MoreQ4 GDP revised downward to 2.8% from 3.2% in line with the Fed Reserve Bank of Chicago’s monthly National Activity Index. It’s kind of like a montly GDP report! It’s been saying that the economy is growing, but too slowly.…
Read MoreThe public union smackdown in Madison, WI has me wondering what benefits public unions bring to taxpayers. As I see it their incentives are to increase the cost of government and reduce accountability of public employees. Public union defenders may…
Read MoreU.S. consumer confidence (Conference Board survey) jumped to 70.4 in Feb from 64.8 in Jan; the 5th increase in a row and best level since Feb ‘08. But, we are 20 months into a recovery, and 70.4 is the second…
Read MoreThere was sobering article on the front page of the WSJ (weekend edition) titled Retiring Boomers Find 401(k) Plans Fall Short. The key statistic was that the median household headed by a person between the ages of 60 and 62…
Read MoreGiven signs of inflation QE ends in June taking wind out of the S&P. The fiscal year for S&L govts starts in July and big tax hikes and spending cuts are due. State restraint is already visible in reduced employment.…
Read MoreThe Good: Fed lifted its GDP forecast for ’11 to a 3.4% to 3.9% band from 3.0%-3.4% based on minutes from Jan meeting. The Bad: Ongoing frustration with slow progress in the labor market compelled the Fed to say that…
Read MoreThe US has had two huge bull markets since the end of WWII; ’46-’66 and ’82-’00. Each time there was a positive shock to the economy. The 1st bull market resulted from baby boomers and the creation of the Interstate…
Read MoreConsumer sentiment came in better than expected in Feb at 75.1 but the expectations component which leads spending growth fell to 67.6 from 69.3 in Jan and all the gains in consumer confidence were in the high income segment; soaring…
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