August 4, 2011 Leave a comment
I would say the market is signaling a potential recession and continuing high unemployment.
This is bad new for the Coral Gables’ pension funds, right?
Economy, Politics and Local Government
Nothing to add here.
The writer is a major international finance operator who knows more than any economically illiterate US politician that our radical right have shot the US in the foot.
It is discouraging that several months of disruptive political bickering and posturing failed to deliver a well-defined medium-term fiscal reform effort. Instead, the legislation signed into law by president Obama on Tuesday is terribly unbalanced in design, lacks proper operational details, and leaves key issues to at least one more round of political brinkmanship.
This incomplete endeavour could be dismissed as business as usual in Washington except for one important consideration: it materially darkens an already fragile outlook for economic growth and job creation.
Business and household confidence has been hit at a time when recent data releases – including weak gross domestic product growth, virtually flat manufacturing activity, and declining consumption – all confirm that the US economy is struggling after last year’s stimulus-induced growth spurt.
Local and State governments will need help in the coming months to keep them from adding too much to unemployment.
…the single largest and easiest method of deficit reduction is the non-extension of the Bush high-income tax cuts. The president should make clear that he will not accept their extension on any terms. That, along with modest entitlement reform, will be sufficient to hit current deficit reduction targets. Second, it is essential the payroll tax cut be extended and further measures, such as infrastructure maintenance and unemployment insurance extension, be taken to spur demand. If so, there is still time to confirm Churchill’s maxim that the US always does the right thing after exhausting all the alternatives.