debt crisis

How Troubles in the Eurozone Will Eventually Affect Your Investments

By Friday, July 5, 2013

I can’t say this often enough: the eurozone debt crisis is here to stay for a long time. The key stock indices might have given investors false hope, but we are still standing at square one of any economic recovery.

Greece, which was at the epicenter of the eurozone debt crisis, may be required to issue Treasury bills to stay solvent. The country has to convince the International Monetary Fund … Read More

What the Worst Jobs Report of the Year Means to You

By Friday, July 5, 2013

jobs marketOn the surface, today’s jobs market report looks good…

195,000 jobs were created in the U.S. economy during the month of June, with the “official” unemployment rate for the month sitting at 7.6%, unchanged from May. (Source: Bureau of Labor Statistics, July 5, 2013.)

But look a little closer and this jobs market report is a catastrophe…

Look at the underemployment rate, which includes people who have given up looking … Read More

Germany to Pull Back on ECB’s “Whatever It Takes” Position?

By Wednesday, June 12, 2013

I can’t stress this enough: troubles in the eurozone are far from over.

First and most important, the strongest nations in the eurozone are experiencing an economic slowdown now too. As I have written before, France and Germany are seeing diminishing demand.

Finland, one of the financially strongest nations in the eurozone, fell into a recession in the first quarter of this year. Why? Exports from Finland are declining due … Read More

Number of S&P 500 Companies Reporting Negative Guidance a Red Flag

By Wednesday, June 12, 2013

 Food Stamp Usage RisingStandard & Poor’s, the credit rating agency, believes the likelihood of the U.S. credit rating being downgraded in the near term is less than 33% (one in three) and it has decided to keep its credit rating on the U.S. economy at AA+, slightly lower than the best investment grade. (Source: Standards & Poor’s, June 10, 2013.)

This may be good news to the politicians who continue to believe there … Read More

Next Tiny Country in the Eurozone to Bust

By Thursday, April 18, 2013

Eurozone to BustWhile cutting the growth outlook of the global economy, Chief Economist of the International Monetary Fund (IMF) Olivier Blanchard said yesterday, “…the main challenge is very much in Europe.” (Source: “IMF Cuts Global Growth Outlook as Europe Demand Urged,” Bloomberg, April 16, 2013.)

Blanchard showed further concerns regarding the economic slowdown in the eurozone, saying, “Europe should do everything it can to strengthen private demand. What this means is aggressive … Read More

Student Loan Default Rate Hits a Scary 11%

By Thursday, January 10, 2013

Student Loan Default RateAnother crisis looming in the air…

Student debt is going to be the next big hurdle to deal with in the U.S.’s economic recovery. Total student loan debt currently stands very close to $1.0 trillion and defaults on these loans are increasing at an alarming rate, placing more pressure on economic growth.

In the third quarter of 2012, student loans delinquent over 90 days stood at an alarming 11%. (Source: … Read More

What the Fiscal Cliff Deal Really Means for Investors

By Thursday, January 3, 2013

Fiscal Cliff Deal Really Means for InvestorsIn the end, after weeks of hearing about the fiscal cliff, it was over. Taxes on rich Americans went up, and spending was untouched. But guess what? It doesn’t matter…it makes no difference to America’s debt crisis!

Raising the tax on the rich (individuals making over $400,000 and couples making over $450,000 combined annually) and doing away with some tax loopholes only bring in another $60.0 billion a year to … Read More

Technology and Financials—Exactly What the Stock Market Needs to Test Its Five-Year High

By Thursday, December 13, 2012

What the Stock Market Needs to Test Its Five-Year HighIt won’t take much for this stock market to rally, even though the outlook for corporate earnings is flat and risks like the sovereign debt crisis in Europe are unsolved. The fact is that the stock market in the near term is only looking for one thing: certainty.

With extremely accommodative monetary policy, the interest rate cycle favors equities. But while the stock market has proven it can basically hold … Read More

Poor Italy Can’t Get a Break: Another Change of Government at Hand?

By Monday, December 10, 2012

This morning there’s news that Italy’s Prime Minister Mario Monti could be out and former Prime Minister Silvio Berlusconi back in, clouding the future of the eurozone’s third largest economy. With politics at play in many troubled eurozone countries, and as I have been harping on in these pages; the eurozone sovereign debt crisis is far from over and it will be a very long time before we see any … Read More

Auto Loans: Next Bubble to Burst?

By Monday, December 10, 2012

Next Bubble to BurstAuto sales data just released for the month of November have caught my eye. Auto sales in the U.S. economy have increased to a level similar to the level in January 2008—15% in November 2012 from November of 2011. Car sales are now running at the annualized rate of 15.5 million vehicles. (Source: Associated Press, December 4, 2012.)

On the surface, sounds like great news for the U.S. economy. Consumers … Read More