Blog posts

  • A Promising Budget Deal from Washington

    December 12, 2013
    House Budget Chairman Paul Ryan (R-WI) and Senate Budget Chairwoman Patty Murray (D-WA) announced a budget deal which will need to be voted on by Congress.  The Deal replaces $63 billion in sequester cuts with other savings and non-tax revenues, and it includes an additional $22.5 billion in...

  • Doctors Say “No” in California

    December 11, 2013
    The Washington Examiner reported that about 7 of every 10 physicians in California (a blue state) are not going to participate in the new healthcare law, aka Obamacare, according to California’s largest doctor association.  The reason is easy to understand - the reimbursements are tied to...

  • A Balanced Look at the Manufacturing Employment Numbers

    December 6, 2013
    The media reported good news today, stating that November manufacturing employment increased by 27,000 people. The increase was touted as great news and proof that things are getting stronger and stronger in the US economy.  The 27,000 is the seasonally adjusted number, or if you prefer, the...

  • The Economics of the Employment Recovery and Quantitative Easing

    December 4, 2013
    “The weakest employment recovery in seven decades is proving a boon to equity markets”. That is the lead-in to a news article today. The premise is that weak job growth means that corporations such as Disney, ConocoPhillips, and Northrup Grumman are more profitable because they are doing more with...

  • The Fed Could Do More?

    November 26, 2013
    Janet Yellen, the nominee to replace Dr. Bernanke as the chairperson at the Federal Reserve, recently told the Senate Banking Committee that she would “ensure that monetary stimulus is not removed too soon.”  She is committed to keeping interest rates low and the $85 billion/month bond buying...

  • Tax Increase Eyed by the Senate as ‘More Fair’

    November 21, 2013
    The chair of the Senate finance committee, Max Baucus (D, Montana) is putting forth a way to build momentum for a rewrite of the US tax code.  His idea is to put a 20 percent tax on the estimated $2 trillion held by American companies overseas.  Senator Baucus, and others, object to the...

  • Canada Cuts and Wins

    November 15, 2013
    Canadian Finance Minister Jim Flaherty is leading the charge to do something amazing in Canada. Our neighbors to the north will be realizing a C$3.7 billion federal budget surplus starting in the year April 2015. That is larger than earlier estimates. This is happening even as the economy is...

  • Hype and Profits Surround the Carbon Conversation

    November 6, 2013
    Al Gore and David Blood are principals at Generation Investment Management (GIM).  They warned in the Oct 30 WSJ of upcoming peril in carbon assets in part because of looming market-share losses to “already competitive” renewable technologies.   Mr. Gore stated that these renewable...

  • A Good September in Economic News

    October 30, 2013
    September proved to be a good month for US Industrial Production (manufacturing, mining, and electricity generation).  The index increased 0.57% from August, which was both better than average and the best September performance in four years.  Our rate-of-change analysis shows that the...

  • Germany on the Go

    October 24, 2013
    German firms, blue-chip and middle-sized, are looking outside of Germany when considering investment spending in the coming year.  According to a Wall St. Journal survey, 15% planned on increasing spending in Germany; 54% said they were looking to emerging markets or the U.S.  They cite...