Seymour Zises, President and co-founder of Family Management, writes bi-monthly opinions on issues and observations of relevance to clients and investors.
That is the status of the American government today. It is now Sunday, July 31st, and I am watching CNN as Senator Reid is speaking on the 1pm vote at this point much of the damage has been done. Who would ever believe that this government would go from bad to worse? Though I believe a deal will get done, we have proved to the rest of the world that we are as irresponsible as a 10th grader who crams for an exam by pulling an “all nighter.”
Even though companies comprising the S&P 500 are projected to earn 18% more this year than in 2010, as estimated by Bloomberg, the stock market until recently has been reacting to a barrage of negative political and economic news.
As The New York Times recently reported, federal safety regulations must take the weight of Americans into account when regulating air, sea and land travel. The National Center for Health Statistics has calculated the average weight of an American male as 194.7 pounds and 164.7 pounds for females. He’s (she’s) not heavy, he’s American!!! America is a tale of two cities. On the one hand, corporate America’s profits are strong, borrowing costs are low, workforces are lean, and balance sheets are flush with cash.
Sixty-six years after the U.S. dropped the atomic bombs on Hiroshima and Nagasaki, nature, rather than man, caused the nuclear reactors in Japan to explode and leave an uncertain wake of destruction and potential disease in the Nippon lap. Our deepest condolences to the families in Japan who have suffered. The Four Billion Dollar Problem
This is the net interest rate on the 10-year U.S. Treasury Note as of mid-day on the first business day of 2011. Where this rate goes is really indicative of almost everything that happens in the financial world and is reflective of so many factors. If interest rates move higher, it will either portend an economic recovery or a dollar crisis. Obviously, we prefer the former.
The problems that were with us in 2010 have not gone away. Neither has the enormous stimulus and tax relief that is being extended to all of us.