Economic Comments from a Colleague

by Laura Ehrenberg-Chesler on February 13, 2014

in Banks,Economic Indicators,equity market,Fiscal Policy,taxes

This past week we received a commentary from a very astute colleague from New York; Marc Flaster, a partner at Sandler O”Neill. His analysis of the current state of the economy gave me pause. While I have been, and remain, constructive on the domestic equity market, Marc”s observations are hard to ignore. “This economy cannot get off the ground . It is pinned to the mat by Dodd/Frank, kicked in the butt by low productivity, hampered by the uncertain costs of the Affordable Care Act, and frustrated by US tax policy. Compliance /burdensome

oversight has tied the hands of the elixir of economic growth: Credit. NY Times reports that there is loan demand in the industrial sector but not the consumer online casino sector. And consumer spending is responsible for 70% of our economy. If there is a bungee cord attached to all this it may not be well secured to its post. Caution may well be the word of the day.” The recently reported soft economic data has been a cause for some concern here at Crossvault. The current weakness in the equity market may be the pause that refreshes, or it may be a sign that some of the aforementioned headwinds are more severely impacting the growth of the economy, and the upward trajectory of the market.

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