We won't get the economy out of first gear until the middle class regains the bargaining power it had in the first three decades after World War II to claim a much larger share of the gains from productivity growth. Get it?
We continue to believe that investors are underestimating the risks inherent to the bond market at this stage in the game. Bond investors are not being compensated for the risks they are assuming when they are not even able to earn the expected rate of inflation.
Being a small business owner I'm an eternal optimist. But small business owners need to pay close attention when the media says that something "increased" or "got better." Always say to yourself: "Better? Compared to what?"
Even the conservator of Fannie Mae and Freddie Mac now says mortgage write-downs may make economic sense for the two housing finance giants. All of which begs the question: What if the industry had made these moves sooner?
Nearly three in four Americans report having frozen or cut back their use of credit cards in recent times. But of the more than one in four who are spending more on their cards these days, more than half report using their credit cards to help cover basic needs.