Patricia W. Chadwick has had more than 35 years of investment experience. She is the founder and president of Ravengate Partners LLC, a consulting firm that provides advice on financial markets and global economics.
There is one valuable card that the Government holds and is using as a gargantuan source of capital: it owns all the land in China. It has developed a sophisticated profit system as the national landlord, reaping cash flow from a long term asset while not relinquishing its ownership.
While stuck in the Sarasota airport on Friday, I downloaded the Wall Street Journal to my iPad. The notation on the app was FREE which was my only incentive because I had no intention of giving up the print version which is delivered to my door at 5:30 each morning.
Believe it or not, there is some good news regarding health care reform. Legislators, employers and employees are actually in agreement on a number of important issues facing the industry. If only both political parties in our legislature could come together to implement changes that are not controversial, perhaps the remaining disagreeable items could be tackled later.
The Federal budget deficit cannot be brought under control or meaningfully reduced without addressing the looming insolvency of Social Security.
The fallout from the global crisis of 2008 will continue to impact economies around the world, but the amplitude will be lower, allowing for a return to a more normalized environment for growth and profits. As health returns to economies, so will investment returns.
With their newly won power, Republicans in Congress have the opportunity to exert pressure and hopefully exact cooperation from Democrats. But they must keep in mind that the voting public is watching with a distrusting eye, and can withdraw that power in two years if it is not exercised to the advantage of their own wellbeing.
The new buzzwords – Quantitative Easing – have been added to the alphabet soup of remedies for our still ailing economy. The quick fix “QE” recipe consists of the Fed buying bonds and flooding the economy with the proceeds in the hope that more money will inspire the recipients to spend the dough and thus get the economy off its rump.
The glut of housing is keeping prices exceptionally low despite the extremely favorable interest rates that mortgage seekers can obtain. But fair warning - interest rates will not stay at this level forever. In fact, I believe it would actually benefit the economy to have rates rise somewhat.