11.25.2011 - Money Matters
Lately it seems that a day doesn’t pass without the media bemoaning the lack of progress in resolving the Eurozone’s sovereign debt crisis, the failure of the congressional super-committee to reach agreement on deficit reduction, severely diminished liquidity in the European banking system, a palpable slowdown in the emerging economies of the world and the auction of German bonds that was not fully subscribed. All of which contributes to a crisis of confidence which could potentially tip us into a recession.
However, as bleak as the outlook may be, there is cause for optimism. Entrepreneurship is alive and well throughout the world and ultimately it will lead us out of this darkness by creating new companies that will create jobs. Perhaps if it were not for the headwinds cited above it might even be flourishing.
10.16.2011 - Money Matters
The financial crisis embroiling the Eurozone is now well into its second year. In May of 2010 its political leaders temporarily managed “to kick the can down the road” with the establishment of the European Financial Stability Fund (EFSF) of 440 billion Euros. The fund’s purpose was to provide financial assistance to member countries facing economic difficulty.
The August downgrade ofU.S.debt by Standard & Poor’s, after the debacle over raising the nation’s debt ceiling, set the stage for a crisis of confidence in the financial markets. With no clear resolution in sight to the Eurozone’s sovereign debt crisis there was grave concern regarding the viability of its banks – the ingredients for the perfect storm.
08.21.2011 - Money Matters
The Bureau of Economic Analysis recently confirmed what most of us in the trenches have known for some time – the economic recovery was barely that. GDP growth for the first quarter of 2011 was revised down sharply from 1.9% to a paltry 0.4%. Its initial estimate for GDP growth in the second quarter was a whopping 1.3%, the lowest quarterly growth rate since the recovery began in 2009.
07.26.2011 - Money Matters
The brinkmanship of the feckless politicians on both sides of the aisle inWashingtontoday is irresponsible. The economic recovery has been the weakest since the Great Depression and remains extremely fragile to this day. The fallout from a default would cause another recession. While it is important to get the deficit under control and raise the debt ceiling,it is truly a sad day when the leaders of our country posture to enhance their reelection chances in 2012 rather than compromise.
07.09.2011 - Money Matters
We thank William Shakespeare and his famous phrase from Hamlet, “To be, or not to be: that is the question” for the inspiration of our title. In short, it sums up the dilemma facing the European Central Bank (ECB) and the leaders of the European Union (EU) countries regarding the sovereign debt crisis embroiling Greece.
05.29.2011 - Money Matters
While we are not economists by training, we believe the significant headwinds the nation faces along with a good dose on common sense will keep consumers, which represent 70% of the economy, from returning to previous spending patterns anytime soon.
03.05.2011 - Money Matters
Michael Lewis, best selling author and arguably one of the finest investigative reporters, wrote an excellent book The Big Short chronicling the sub-prime mortgage debacle and highlighting the hubris of Wall Street. It led to the unprecedented meltdown of the financial system and culminated in the worst recession ever. Take a look behind the scenes at one of the greatest financial frauds ever perpetrated. Bernie Madoff’s was “chump change” in comparison.