![A New Year, A New Congress]()
by Fersboo
Out with the old, in with the new, goes the standard cliche every year about this time. No, this is not a reference to Nancy Pelosi's age, although incoming House Speaker John Boehner is 9 years younger. Speaker Boehner does represent a new attitude and the resulting optimism is being reflected in the markets and the broader economy.
Consider:
- Retail sales, Christmas sales, were up significantly over 2009
- Consumer and business confidence for November and December have inched higher
- Jobless numbers are moving downward, evidenced by today's ADP employment report that suggested 297,000 new private sector jobs were created in December (this is a big number!)
This is not a coincidence. This is, however a [...]
by Fersboo
The news events of the last few months have certainly put the Obama Administration in a peculiar position. The Gulf crisis notwithstanding, most of these events have been created by this president and his staff.
Team Obama went the the G20 Summit in Toronto this weekend to chide the other 19 nations to continue to stimulate their economy through Keynsian economic principles. "Not so fast", said the other countries. "We have to make choices, and right now, we choose fiscal solvency and prudence". What a concept!
Passage of the Financial Institutions Reform package was always tenuous, at best, but the death of Senator Robert Byrd over the weekend makes passage more difficult. One less Democratic vote means that it's more likely that Republicans can filibuster this package, and this is a good thing. Here's why: Any bill that increases regulation, drives up costs to the consumer, and squeezes financial services companies' margins will negatively affect the economy. The costs of increased regulation always get passed along to the consumer in some way, shape or form. Limiting profits also limit tax revenues [...]
Out with the old, in with the new, goes the standard cliche every year about this time. No, this is not a reference to Nancy Pelosi's age, although incoming House Speaker John Boehner is 9 years younger. Speaker Boehner does represent a new attitude and the resulting optimism is being reflected in the markets and the broader economy.
Consider:
