Posts Tagged ‘U.S. Economy’

Obama's Town Hall Speech President Barack Obama gave us another chance yesterday to witness his eloquent, seemingly Switzerland-like delivery and response to some fairly direct and tough comments and questions. Deflect, deflect, deflect (and maybe spin a little).

I happen to respect the man greatly for his intelligence and his ability to handle situations. I also think his job in office has certainly been better than I could ever do, but certainly not one that deserves acclaim.

This opinion was shared by a devout Democrat who was a CFO and mother of two kids headed off to college, when she expressed her disappointment in the actions (or lack thereof) of the current administration. She was hoping for change, but like many of us has had yet to see it. I understand that changing the economic health and sentiment of a nation takes time, so maybe it’s the grand promises that were made that are now blossoming into disappointments. (more…)

Buffett vs. Roubini I found it interesting that Warren Buffett was recently quoted as saying: “I am a huge bull on this country. We are not going to have a double-dip recession at all…I see our businesses coming back across the board.”

At the same conference, Jeff Immelt, CEO of General Electric (NYSE:GE), said that his firm’s businesses were improving as well.  On the other side of the fence, you have NYU econ professor Nouriel Roubini all over the press saying there will probably be a double-dip recession, or horrible growth. (more…)

Obama’s Plan May Keep the Cement Flowing

Wednesday, September 8th, 2010

100908Highways.jpg On Monday, President Obama announced a six-year, $50 billion infrastructure proposal to a fired-up crowd in Milwaukee. Even though we may not have the money, repairs are still needed.

The United States’ highway, bridge, rail and aviation systems have not only allowed this great country’s citizens to travel freely and easily to just about any destination within our borders, but have also made the transport of goods and commodities much easier (and cheaper) over the years. The bulk of these products now make it to their final destinations via tractor trailer. Our constantly-growing interstate highway system, which was born in 1956, is both the largest highway system in the world and the largest public works project in history. (more…)

Productivity and the PMI I’m certainly not here to be a “Debbie Downer” and in all fairness, there could be some real positives in the latest round of economic data. Before I dive into productivity, however, it wouldn’t be a balanced argument if I didn’t fold in Wednesday’s unexpected jump in the Purchasing Managers’ Index (PMI), which showed a reading of 56.3%. This was a 0.8% increase when compared to July’s reading of 55.5%.

The Institute for Supply Management’s (ISM) latest PMI figure was a testament not only to manufacturing growth in August, but continued growth for the 16th consecutive month in the overall economy. (A PMI reading in excess of 42%, over a period of time, generally indicates an expansion of the overall economy). The reading also indicated expansion in the manufacturing sector for the 13th consecutive month. A reading higher than 50% indicates that the manufacturing sector is generally expanding; below 50% suggests contraction.

Eleven of the 18 manufacturing industries enjoyed a positive growth month in August. Here is the list of industries, in order of growth rate:

  • Primary Metals
  • Apparel
  • Leather & Allied Products
  • Transportation Equipment
  • Fabricated Metal Products
  • Electrical Equipment
  • Appliances & Components
  • Miscellaneous Manufacturing
  • Computer & Electronic Products
  • Paper Products; Chemical Products
  • Food, Beverage & Tobacco Products
  • Printing & Related Support Activities (more…)

Is a jobs bill enough? In listening to the President speak yesterday – after he got the audio fixed- I couldn’t help but wonder if:

1. A jobs bill will really have a significant impact

2. Small business owners are even really aware of this bill and are indeed waiting to hire based on its passing? In other words, will “holding the bill hostage” deter these business owners from extending job offers?

Here is the transcript.

The businesses of investing and trading both have their complicated moments, as does the analysis of economic trends. But I do believe there are some major problems that actually have a more simple solution. Sometimes (in this business especially) many of us tend to think that a solution, method, or path to success must involve layers of complex analysis and in turn very complex solutions. I like to try and reduce things down to the simplest terms any time I can and relate a seemingly large situation or problem to something I can wrap my head around.

I first set out to quiz a couple of friends who are business owners in Dallas, Philadelphia, and southern New Jersey.  Did they even know a jobs bill was in the works?  The answer was a resounding NO.  (Although my realtor was familiar with it, she didn’t think it would help her business much). (more…)

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