Several Positives From The Economic Front This Week

13 Aug

While the mainstream press latches on to every single bit of bad news they can find and jam it down our throats as indication that we will soon be leading donkeys around with pots and pans clanking off the sides, I was able to find positive sentiment, as I usually can nearly any day that I have time.  While we’re not out of the woods, this just may be our new “reality” for a while and we all just need to dig in and deal with it.  The good news is that it’s causing more of us to re-think our spending and in fact savings is on the rise, which is good.  Planning for retirement instead of taking that two-week cruise to Spain, just may be the smart bet for a lot of us…  Now, for the positive news.

Retail sales tepid but sentiment finds a footing

Energy and Auto Sales Lifted U.S. Retail Sales in July

INSTANT VIEW: U.S. retail sales up in July, CPI higher

Euro zone records strong GDP growth in second quarter

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Private sector sees job gains in July

4 Aug

(Reuters) – Private sector employment rose slightly more than expected in July, easing some concerns about labor market weakness ahead of a key government jobs report later this week. Read the full story HERE.

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Debt Vs. GDP

2 Aug

A lot has been made of the debt we’re incurring, and to some degree it should be.  Like consumers, our country needs to be aware of the debt load we’re taking on, why we’re taking it on, and what would happen if we did not.  Our country’s leaders at any certain time has to ask themselves these questions when considering adding to the national debt.  For example, the two largest run-ups in America’s debt have been under republican presidents.  Rather odd isn’t it?  Well when you look at why and the outcome, you may or may not agree we needed to do it.  Ronald Reagan busted USSR by escalating defense spending until the Russians could no longer hang with us..now I know there was much more going on that that, and I’m simplifying, but that’s why were were spending… George Bush decided we needed to engage in war in the middle east. Again, whether or not you agree it’s irrelevant.  The point is, leaders have to ask themselves these questions. Why, What if, and What if We Don’t?

But what’s absent in a lot of the rhetoric is putting debt in perspective.  The caveat is I’m no economist, don’t pretend to be.  I’m a marketing professional.  And because of that I know how the spinsters think and work.  They’re going to focus on the raw number…for example…Look how much more I’m paid than my grandfather…looking at the two numbers, you’d think he was an illiterate idiot…but put that in perspective with the cost of living and suddenly you go…”oh!”  So here’s the deal…when you think of debt…think of it relative to what we output here in the USA..or..our GDP… When you do this, you see that the debt we have incurred is not as bad as we’ve taken on historically, and if we manage it going forward, it should be ok.  Now I’m not projecting what the out-years of what the government is doing because there is NO WAY to KNOW what is going to happen…any one that says they know is simply guessing…Because the greatest minds on Wall Street, including Warren Buffet himself didn’t see this mess coming… So, stay calm, stay informed watch what’s going on…but please…don’t tune in to either side’s spin machine…because I assure you, they are spinning it to whip you into a frenzy, create division and make a listener of you… Here are the charts…make of them what you want…or will… and keep it balanced, and positive!

GDP vs. Debt graph

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Positive Earnings Reports Coming In This Morning….

22 Jul

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Economists say recovery continues, but pace slows

19 Jul

NEW YORK – Economists say the U.S. recovery continued during the second quarter of this year with more businesses hiring workers and fewer cutting jobs, but the pace of growth has slowed, a new survey shows.

The National Association for Business Economics said its latest survey, released Monday, found 31 percent of businesses added workers between April and June, the highest level in three years. And 39 percent of those surveyed say they expect to hire more workers over the next six months — the most since January 2008.

Read the full story HERE.

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Wall Street reform clears Congress

16 Jul

Although I’m not a fan of government intervention into our lives, the recent financial crisis in America underscores the importance of having an entity looking out for the public safety of our retirement plans and monetary system.  In this country we’ve had several financial crisis dating back to the Great Depression which started largely in part due to banks emptying their vaults in order to loan money, create profits and award bonuses, completely ignoring reserves they were supposed to hold back in the event a depositor actually wanted their money.

Flash ahead to the 80′s financial S & L crisis, and now the banking system crippled by activity that most of us (including myself) had no idea what was going on.  The flipside of capitalism is the insidious deceit that evolves in the name of maximizing profits.  Profits are good, honest profits are better….in the long run.  Legal profits are one thing, honesty and integrity are another.  For example, it’s not illegal to have an illicit affair on your spouse…but it certainly is not honest and calls into question one’s integrity.  So here we have a banking system, finding loopholes, engaging in extremely risky behavior, and deceitful behavior in order to maximize profits, share value, and generate wealth for themselves.  Again, wealth is not a bad thing, I’m all for it, but do it the right way without putting your customer’s financial well being in jeopardy, which is exactly what the system did.

So while I will once again say I’m not an advocate for big government involvement in our lives, I will say I’m glad we have a system where at least enough of our representatives saw clearly enough and avoided the great lobbying that took place to defeat this bill, and voted to protect our retirement savings and our ability to ensure a solid financial picture for future generations, save all the spending that’s going on, which is a completely different post…not to be covered here.

Read the full story HERE.

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May job openings dip but hiring near 2-year high

14 Jul

(Reuters) – Job openings slipped in May, but the hiring rate climbed to the highest level in nearly two years, government data showed on Tuesday. This accommodates for temporary census hires, but still reflects a slow and steady growth in employment.  Read the full story HERE.

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Everything’s Amazing, Yet No One is Happy…

12 Jul

Many of you may have seen this by now…but it’s a hilarious bit by Louis C.K. on the Conan show….  Funny, but also  makes a good point.  We have a lot of good going on, yet often times we focus on what’s NOT good and dwell on it… Enjoy!

IMF lifts world growth forecast

8 Jul

(Reuters) – The International Monetary Fund upgraded its 2010 global growth forecast on Thursday, citing robust expansion in Asia and renewed U.S. private demand, but warned the euro area’s debt crisis posed a big risk to recovery. Read the full story HERE.

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New jobless claims offer hope for recovery

8 Jul

(Reuters) – New claims for unemployment benefits fell more than expected last week to their lowest level in two months, offering cautious hope for the economic recovery that had shown signs of fatigue. Read the full story HERE.

I harken back to a post I made several months ago pondering how many American’s that are being reported unemployed, are not seeking employment.  Rather I suppose that many American families have adjusted consumption to mediate the loss of one income and are making do with less, and enjoying the benefits of having a parent home, tending to the home and family.  After all, this was a big part of our “family values” of generations past…a hot meal on the table, taking care of the home during the day, so evenings could be reserved for the family.  And it’s not the woman doing the staying home all the time these days, men are having to learn the art of efficient home-making and from what I’m reading they’re doing quite well, and in fact enjoying it in many cases.

It could be that we just may be looking at these numbers for a while, not because of this or that administration or government actions…but because many families I believe, are just choosing to do with a little less “stuff” and a lot more “family.”  Of course, that’s not to diminish the harsh effects of families that have lost their single source of income due to the economies.  That is a complete tragedy of another kind.  And for those families, my heart goes out to them…especially once unemployment runs out.

But we keep doing what we do best…we get up and go to work each day, trying to stay focused on the positive, while preparing for the future, whatever it brings.