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Economic Data and News Below The Radar

Posted by Larry Doyle on May 13, 2009 8:27 PM |

While navigating the economic landscape, I picked up a few items below the radar:

1. projected issuance of U.S. Treasury bills, notes, and bonds for calendar 2009 will be $2 trillion. To put that in perspective, that figure exceeds the issuance for 2006, 2007, and 2008…..COMBINED.

2. seven senior executives at GM sold all of their stock in the company. With the price of GM in the $1.25-$1.50 range, this sale is a clear indication that the company will either file for bankruptcy or massively dilute existing shareholders in a restructuring.

3. 1st quarter tax revenues in 47 states declined on average by 12.6% year over year with expectations of steeper declines going forward. Increased taxes and declining services are on their way. I also mentioned to my better half, I expect states to pass legislation promoting “sins” in an attempt to generate revenue.

4. our economy is experiencing the highest inflation adjusted level of interest rates since the ’80s. These rates along with anemic consumer demand are squeezing company bottom lines. As a result, companies are aggressively cutting expenses while revenue opportunities are diminishing.

5. the IMF has indicated that European banks should undergo stress tests much like our domestic banks.

6. the GAO (General Accounting Office) issued a scathing report highlighting how deficient the SEC is in terms of equipment, systems, staffing, and execution. No surprise, but very disheartening.

7. I have added a link which I think readers will find quite informative. Subsidyscope, launched by the Pew Charitable Trust, will track federal subsidies across industries. In the Uncle Sam economy, this link should prove to be invaluable.


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