05 Jan 2007

Posted at 16:27h in The Friday Brief by
Economic reports continue to indicate that theUSeconomy and the global economy are headed for a soft landing rather than a recession, despite the decline in housing and the auto sectors. Today, the Labor Department announced that theU.S.added a greater-than-expected 167,000 workers to employers’ payrolls in December while incomes grew by the most in eight months. The employment gain followed a 154,000 rise in November, also larger than previously estimated and the overall unemployment rate held at 4.5%. On Wednesday, the Institute for Supply Management helped lift stocks by reporting that its barometer of manufacturing business crept up to 51.4 in December, indicating growth after a brief contraction in November.

15 Dec 2006

Posted at 15:24h in The Friday Brief by
The Fed met earlier this week and announced that they plan to keep the brakes on the economy as they fear inflation worse than they do a slowing economy. But there was room in their statement for hope that a cut would come in 2007 noting a “mixed” economic performance and describing the year-long housing slump as “substantial.”

01 Dec 2006

Posted at 15:49h in The Friday Brief by
The government revised its estimate of how fast theUSeconomy grew in the third quarter from 1.6% to 2.2%. Stocks did very well mid week as investors were cheered by faster growth in the economy which drives corporate profits higher. Bonds on the other hand slid on the news as stronger economies can mean higher inflation. 

10 Nov 2006

Posted at 16:00h in The Friday Brief by
The polls tell us that the Republicans lost the election over the Iraqi War and scandals. But, scandals are a part of the political fabric and largely accepted. It’s obvious that the Bush’s administration’s handling of the war is the major reason for the Republicans’ historic defeat. Even at the outset, the war was fraught with political risk. The world was not behind it nor was a significant minority (at that time) of the country. Wars are never as quick or efficient as hoped. In time and with daily reports of increasing chaos, support at home quickly diminished. The no-war minority grew more vocal, and with the help of opportunistic politicians and an Administration deaf to outside voices, an unstoppable groundswell began.