Category: Markets

The Legal Environment and Economic Gains

The U.S. Chamber Institute for Legal Reform released a report estimating the potential gains of each state if the legal environment is improved at its 12th Annual Legal Reform Summit this week.

“Americans are rightly frustrated about the current state of the economy,” explained Lisa A. Rickard, president at ILR. “Unfortunately, America’s broken lawsuit system hampers the ability of American businesses to create jobs and drive much-needed economic growth.
“At times when states are facing tight budgets and sluggish economic growth, this new study shows that actions by states to improve their legal environments can produce real economic dividends.

Rickard was joined by the U.S. Chamber of Commerce President and CEO Thomas J. Donohue, as well as House Speaker John Boehner, South Carolina Governor Nikki Haley and Virginia Governor Bob McDonnell at the summit.

Lazard Capital Markets: US Stocks Plummet

It’s not good news on the market again.  Just last Friday, 7th October, stocked ended lower.  This impacted weekly gains, and resulted in caution and concern from stockbrokers.  According to Lazard Capital Markets product strategy head Art Hogan, it’s not all bad. “The good news is we again have not gone into a double-dip recession, the bad news is nobody seems to care right now with all of our focus on Greece.” Still, there is a long way until we’re out of the woods.  The Dow Jones Industrial Average plummeted 20.21 points.  So much still needs to be done.

The European Economic Impact on America

No economy exists in a bubble, and America is certainly not an exception to that rule.  The widening fiscal issues in Europe are threatening to have an impact on the economic recovery in America.  As Ruth Stroppiana, and economist in London, said about the situation in Europe, “It’ll take years of savage spending cuts, wage cuts and welfare-pension reform to eventually grow out of the debt situation.”

American businesses, which count on Europe as a major market, will certainly feel this downturn. During January and February of 2010, U.S. companies exported $36.5 billion of products to the EU nations.  Should the economy continue on its downward spiral there, it will certainly have an impact on exports and on the world economy.  Read more about these issues and their impact on the American economy.

Financial Crisis was the Perfect Storm, Say Wall Street Bankers

[youtube http://www.youtube.com/watch?v=n0XIF84AtYg&w=420&h=315]

In this video, Wall Street bankers who were testifying before Congress explained how the recent financial collapse was the perfect storm. Hear Dylan Ratigan and Eliott Spitzer, among others, discuss the recent financial crisis and what should be done about it.

General Electric Co. Warns of Touch Economic Times Ahead

When a major company, such as General Electric Co., warns of economic hardships, it’s certainly time for the rest of the American economy to listen. In a discouraging report on Friday, GE posted a 46% drop in their fourth-quarter earnings and warned that they, and many other companies, may be in for a difficult year.

As GE’s Chief Executive Jeff Immelt told analysts on an investor conference all, “The environment in total is very tough.” The quarterly revenues slipped 5% to $46.2 billion.

U.S. Economy Showing Signs of Recession

While the U.S. economy is on the brink of a recession, the economy did expand at a .6% annual pace during the first quarter. Mark Vitner, a senior economist at Wachovia Corp. in Charlotte, North Carolina, said that, “If you were to take out the swing in inventories, these numbers would be negative.” In an interview with Bloomberg Television, he continued by saying,“We think we’re in recession, but I don’t know that the GDP numbers are going to turn negative at all in 2008.”

The largest part of the economy, household spending, grew during the last quarter at the slowest rate that it has since 2001, during the time when the U.S. was in a recession.