Presentation on theme: "Economic/Market Update – December 2012 Daryl Montgomery December11, 2012 Copyright 2012, All Rights Reserved The contents of this presentation are not."— Presentation transcript:
Economic/Market Update – December 2012 Daryl Montgomery December11, 2012 Copyright 2012, All Rights Reserved The contents of this presentation are not intended as a recommendation to buy or sell any security.
This is the 5 Year Anniversary of the Beginning of the Recession in 2007
Hows the Recovery Going? ECRI says U.S. recession began in July. EU officially entered recession in Nov. BOE says UK could be facing triple-dip recession. Japan sinks into yet another recession (announced yesterday). GDP down 3.5% in Q3. All these countries have 0% or close to 0% interest rates and have been printing money. China GDP at 7.4% (slows for 7 th Quarter). India GDP growth lowest in 10 years.
U.S. Employment in the 2000s The U.S. needed to create almost 9 million extra jobs since recession began, not even back to number at starting point. We are 12.5 million short.
Falling Labor Force Participation Rate Right of green line is after recession began.
Central Bank Policies U.S. and Japan at 0% interest rates. Fed has said it would keep rates at 0% until 2015. UK at 0.50% and EU at 0.75%. All 4 engaging in some for of QE (Quantitative Easing), a form of money printing. U.S. QE3 has no time limit, no $ limit, no security type limit. Operation Twist may be ending. No more bullets in case of crisis.
European Debt Crisis Greece gets another bailout. We have settled the Greece question- Holland France is downgraded by Moodys Monti resigns in Italy, Juncker resigns again. Spanish banks loaded up on govt debt. Spain has still not asked for bailout. Credit Suisse announces negative interest rates on interbank deposits. EU awarded Nobel Peace Prize!