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.

03 Feb 2006

Posted at 15:01h in The Friday Brief by
The latest economic news further clouds the picture and investors have acted on that uncertainly by selling stocks.  We expected a sell-off early in the year, but wonder if it has gone a bit too far. 

28 Oct 2005

Posted at 16:26h in The Friday Brief by
The rear-view mirror shows the economy continued to expand in the third quarter.  US Gross Domestic Product increased to a 3.8% annual rate, more than predicted, despite higher energy prices, rising interest rates, and two devastating hurricanes.  Consumer purchases of automobiles and slower growth in imports contributed to the increase.  Housing was also a significant contributor, but it is slowing.  Residential fixed investment grew 8.9% in the third quarter, down from 10.9% in the previous quarter.  Federal government spending went up 7.7% in the third quarter, significantly higher than the 2.4% growth in each of the previous two quarters.  

29 Apr 2005

Posted at 16:39h in The Friday Brief by
According to today’s government reports, the consumer has not wilted in the face of higher gasoline prices.  Personal spending was up more than expected in March while personal savings fell to .4%, the lowest since October 2001.  Mitigating the falling savings rate somewhat though is a healthy rise in disposable incomes.  When adjusted for inflation, incomes were up 3.3% last month from March 2004.