By Michael Lombardi, MBA | February 14, 2014
The savings of 500 million individuals living in the European Union are on the line.
Let me explain:
We all know Cyprus, one of the smallest countries in the eurozone and part of the European Union, went through what many feared. To save itself from default and pay down its out-of-control national debt, the government imposed a one-off capital levy on the bank accounts of individuals in that country. If … Read More
By Michael Lombardi, MBA | November 23, 2012
What no politician has the guts to do:
Step 1: stop printing more fiat currency; Step 2: have all fiat currencies backed by gold.
It wasn’t too long ago that the global economy had the gold standard—only a certain amount of money was printed and that printing was based on the holdings of gold bullion a country had.
Now, after a few decades of running away from the gold standard … Read More
By Michael Lombardi, MBA | November 23, 2012
While debt-infested countries in the eurozone are struggling to decrease their budget deficits, the U.S. government is reporting an increase in its deficit. For the fiscal year of 2012, the federal government budget deficit was $1.09 trillion, slightly below 2011’s deficit of $1.29 trillion. (Source: U.S. Department of the Treasury, October 12, 2012.) As a percentage of gross domestic product (GDP), the U.S. government’s budget deficit for the year 2012 … Read More
By George Leong, B.Comm. | August 20, 2012
Following a weak second quarter, the Dow Jones Industrial and S&P 500 indices are now in positive territory for the first time since the end of the first quarter on the backs of a positive July and August.
So far, August has proven strong for technology, growth, and small-cap stocks, with the NASDAQ and Russell 2000 up 4.2% and 3.4%, respectively, as of the close of Thursday. The S&P 500 … Read More
By Michael Lombardi, MBA | August 13, 2012
Italy’s economic contraction deepened, as its GDP fell 0.7% in the second quarter of this year. What is more disconcerting is that, year-over-year, in the first quarter of 2012, GDP contracted 1.4%; while, in the second quarter, the economic contraction worsened, as GDP shrunk by 2.5%.
Italy’s Retail Confederation predicted last week that consumer spending would fall by the most in 2012 since WWII!
In Spain, the economic contraction continues … Read More
By Michael Lombardi, MBA | July 27, 2012
I wrote a couple of months ago in these pages about the fact that the British economy officially entered a recession as of the first quarter of 2012, when the country released its GDP growth numbers. While Britain expected its third consecutive quarter of negative GDP growth in the second quarter of 2012, the economic contraction is worse than first thought, because GDP growth contracted by 0.7%!
This was the … Read More
By George Leong, B.Comm. | July 13, 2012
Apple Inc. (NASDAQ/AAPL) will report its fiscal third quarter on July 24, but the real excitement for the company will be the second half, when Apple releases the highly anticipated “iPhone 5,” an “iPad” mini (to challenge smaller tablets), and the next version of “Apple TV.” I recently played around with Apple TV, and I can tell you it is quite impressive. The ability to wirelessly stream pictures and video … Read More
By Michael Lombardi, MBA | July 2, 2012
Hope springs eternal; many believe consumer spending will resume in 2012 as the jobs market improves, preventing the U.S. economy from entering a recession. But the hard evidence shows otherwise.
As the U.S. Senate and Congress are split between democrats and republicans, there are at least 15 job bills that have not been passed or that are still stalled, as the jobs market continues to deteriorate. (Source: LA Times, … Read More
By George Leong, B.Comm. | June 27, 2012
The eurozone is on shaky ground.
European Union leaders will be meeting on Thursday to begin an emergency two-day summit as the region’s leaders attempt to localize and corral the European debt crisis.
Spain has formally requested emergency funds to help save its fragile banking system. It is unknown how much cash Spain is asking for, but about USD$130 billion is available. The overriding concern is if Spain collapses, it … Read More
By Michael Lombardi, MBA | June 20, 2012
The focus this past weekend was squarely on the Greek elections and whether the vote was one which would precipitate the exit of Greece from the European Union.
The focus instead should have been on the fact that Greece will run out of money very soon and hence will require another bailout from the European Union.
In the first quarter of 2012, the Greek unemployment rate hit 22.6%. As the … Read More