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Posts Tagged ‘confidence’

What Happened to Focus on Jobs?

Posted by Larry Doyle on March 16th, 2010 9:38 AM |

If America and Americans are not at work, then how can we truly expect any other initiatives and undertakings to gain a foothold? There is nothing that generates more personal and collective confidence than a job. In fact, I would go even further and state that a job not only generates personal confidence for individuals, but ultimately a job very often defines a person’s self-worth.

Then why is it that the topic of jobs is not the OVERWHELMING focus in Washington eight days a week? While President Obama elevated the focus on job growth in his State of the Union speech, the topic seems to receive front page coverage only on the first Friday of the month when unemployment statistics are released. (more…)

Global Confidence Rollercoaster Hits Downdraft

Posted by Larry Doyle on February 10th, 2010 8:28 AM |

Rollercoaster…..!!!

I used the analogy of this amusement ride yesterday to describe our global economy and markets. A day at Six Flags seems far more appealing than the continued twists and turns of our global economy. Today, the riders on our global economic rollercoaster indicate they see further downward motion with hard twists and turns ahead. Bloomberg surveyed close to 2,500 ‘riders’ the first week in February and reports, Global Confidence Ebbs on Concern Budget Gaps Will Hurt Rebound:

Confidence in the world economy dropped in February on concern worsening government finances in some European nations will derail the global recovery, according to a Bloomberg survey of users on six continents.

The Bloomberg Professional Global Confidence Index dropped to 54.9 from 66.6 in January, when the reading was at the highest level since the series began two years ago.

What drove the 20% decline in this reading? In one man’s opinion: (more…)

Confidence

Posted by Larry Doyle on March 21st, 2009 10:07 AM |

Our economy, markets, and global finance are impacted by a wide array of factors. While various analysts will focus on the differing magnitudes of a variety of these factors, I know of nobody who would not say that ultimately the greatest factor of all is “confidence”. While there is a monthly Consumer Confidence Survey generated by the University of Michigan, confidence is not measured by hard data.

Regrettably, we are currently suffering a crisis of confidence. The crowd in Washington has not helped instill confidence with its scattered approach to legislation and policy.

Over and above the problems in Washington, our global economy is suffering from increasing protectionist measures. Our current administration may talk about free trade and open markets, but their actions speak otherwise. Those actions impact global confidence. Other countries and regions are equally guilty of the same issues. (more…)

Libor Creeping Higher

Posted by Larry Doyle on March 11th, 2009 5:45 AM |

For those involved in the markets, very often the first rate one checks in the morning is Libor (London Interbank Offered Rate). For those not directly involved in the markets, perhaps tomorrow morning or Thursday you may start your day by asking your partner, “where’s Libor?”  In all seriousness, the 1 month and 3 month Libor rates may very well be the most closely watched indicators of market health in the world.

As Libor is the rate at which banks can borrow from each other in the London market, the rate is an indication as to the availability of dollars and the confidence banks have in each other’s credit. Traditionally, Libor tracked the Federal Funds rate (the rate at which banks borrow from the Federal Reserve) very closely.  However, on the heels of the failure of Lehman Bros. last September, the confidence banks and investors had in each other plummeted. The relationship between the Fed Funds rate and 3 month Libor blew out.  The 3 month Libor rate went as high as 4.7% from just outside 1%. Recall that at that period there was concern about money market funds “breaking the buck” amongst a whole set of other issues. (more…)






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