There is little doubt that the US economy is on the mend. Commentators who continue to refer to “the ongoing recession” or “our lousy economy,” (and there seem to be many of them), are strangely out of touch. Economic recovery so far has been of primary benefit to active investors (bonds, stocks, real estate) rather […]
An Ill Wind Blows Through the Holiday Season
Conventional marketing wisdom dictates that during the holidays people like to hear cheerful news and positive predictions. I’ll keep this focused on finance, but cannot help but express my deep grief at the horrific tragedy that has befallen so many families in Newtown, Connecticut. It is difficult to maintain the holiday spirit when others are suffering so.
Financial winds are not promising. The chasm that exists between people holding radically different financial and political philosophies seems to have widened, demanding that the financial markets send a signal to all concerned that compromise and shared sacrifice are no longer desirable but well overdue. When under stress, people cling in a most uncompromising way to their beliefs, losing flexibility of thought and any sense that their beliefs may be subject to question. Usually it is only after reality shakes people loose from their cherished beliefs that compromise comes. So I fear a sharp tumble in financial markets may be required to focus the attention of decision makers in government.