A VERY GOOD CASE COULD BE MADE THAT THE BEST 12 YEARS, EVER, OF THE U.S ECONOMY MAY BE THE LAST 12 YEARS UNDER A DEMOCRATIC PRESIDENCY (8 years of President Clinton along with the last 4 years under President Obama) AND ONE OF THE WORST 8 YEARS OF THE U.S. ECONOMY MAY BE 8 YEARS UNDER A REPUBLICAN PRESIDNECY, THE LAST 8 YEARS UNDER PRESIDENT BUSH.
Here are some articles related to our economy.
It ...seems like things are going in the right direction?
Published February 11, 2013, 12:00 AM
Healing home market: Signs point to continued recovery in Duluth area!
Yolande Jenny’s experience selling her Duluth home last year is one of the success stories.
By: Candace Renalls, Duluth News Tribune
Yolande Jenny of Duluth stands in front of her former Duluth home, which sold in just two days for $10,000 more than her asking price. (Bob King / rking@duluthnews.com)
Yolande Jenny’s experience selling her Duluth home last year is one of the success stories.
In the midst of a housing rebound last spring, she sold her house in just two days.
“I was amazed,” said the retired University of Minnesota Duluth professor. “I put it up in May. I expected to spend the entire summer there.”
After 37 years in the house, she decided to sell because she also has a cabin to keep up, and she wanted less yard work. She also feared her pocket neighborhood, tucked between UMD and Arrowhead Road, might shift to student rentals.
With three purchase offers coming in the first day of the house’s listing, the sale to a couple offering $10,000 over the asking price was a quick one. Jenny hadn’t even found a condominium to move to yet. But working with the same real estate agent, she found one the next day in the nearby Aspenwood housing community. Within a few weeks, she had moved in.
Chalk up two home sales for Duluth.
As confidence returned to buyers last spring, listings were up, sale prices were up, and foreclosures were heading downward in Duluth.
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Want to Make More than a Banker? Become a Farmer!
Farmers accross the country are enjoying the best economy in over 40years.
Stephen Gandel/Grand Island
Tools of the trade surround John Willoughby on his 2,000-acre (800 hectare) plot outside Grand Island, Neb.
If you want to become rich, Jim Rogers, investment whiz, best-selling author and one of Wall Street's towering personalities, has this advice: Become a farmer. Food prices have been high recently. Some have questioned how long that can continue. Not Rogers. He predicts that farming incomes will rise dramatically in the next few decades, faster than those in most other industries — even Wall Street. The essence of his argument is this: We don't need more bankers. What we need are more farmers. The invisible hand will do its magic. "The world has got a serious food problem," says Rogers. "The only real way to solve it is to draw more people back to agriculture."
It's been decades since the American heartland has been a money pump and longer since farming was a major source of employment. Old rural towns have emptied as families — and the U.S. — have moved on. Technology, service jobs and finance have been the basis of the economy since at least the 1980s. Farming became the economic equivalent of a protected species — supported by a mix of government handouts, lax regulation (agriculture is one of the few industries shielded from certain child-labor laws) and charity concerts. (See pictures of urban farming around the world.)
But in the past few years, thanks to a wealthier (and hungrier) emerging-market middle class and a boom in biofuels, the business of growing has once again become a growth business. At a time when the overall economy is limping along at an anemic growth rate of 1.9%, net farm income was up 27% last year and is expected to jump another 20% in 2011. Real estate prices in general are again falling this year. But according to the Federal Reserve, the average farm has doubled in value in the past six years. Farmland is quickly emerging as one of the year's hottest investments on Wall Street. "We've been doing this for a number of years, long before anyone thought this was sexy," says Jeff Conrad, who heads Hancock Agricultural Investment Group. "Now we are getting a lot of calls, and we are noticing more competition. There's a lot of interest in New York."
These days, a trip to Grand Island, Neb., a city of 48,500 surrounded by farms, is a trip to an economic bizarro land. Business is booming. None of the half-dozen or so local banks in town have failed or even come close to failing. In fact, profits are up. "A lot of local banks are sitting with a lot of cash," says Colby Collins, Grand Island branch manager for Five Points Bank. The largest local manufacturing plant, which makes combine harvesters, is at full capacity. Case IH plant manager Bill Baasch has hired 130 workers in the past nine months. Sales at Global Industries, a company based in Grand Island that makes grain-storage bins and other building materials, are up 130% since 2003. Tom Dinsdale, who owns the local General Motors car dealership, says 2010 was the best year he's ever had. Customers who would normally buy a Chevy Suburban are buying a Cadillac Escalade. Dinsdale is adding an infinity pool to his nearby riverfront second home. "Business is good," he says.
Even housing has done well in the past few years. Realtor Lisa Crumrine says her office has sold 48 homes in Grand Island in 2011 and that prices are up slightly. Greg Baxter, a cattle rancher and real estate developer, says he has sold six lots so far this year in a development just off Grand Island's commercial strip. Local homebuilders are busy constructing custom homes on the properties. That's one reason Nebraska's unemployment rate is 4.1%, the second lowest in the country behind that of mining-heavy North Dakota. Iowa's unemployment rate is a slightly higher 6%, still far lower than California's 11.7%, New York's 7.9% or the national average of 9.1%. (See TIME's photo-essay "Nebraskaland: A Tale of Two Farms.")
But some experts believe agriculture can do more to fuel job growth. Chuck Fluharty of the Rural Policy Research Institute at the University of Missouri sees a possible renaissance in farm towns. As money flows back into those areas, he predicts, farmers will need somewhere to invest. As they did with ethanol, he says, farmers will put their money in new industries that will create uses for their crops, like biodegradable plastics or other kinds of biofuels. The result will be more jobs. "Agriculture is the most critical story in our economy today," says Fluharty. "It will affect the future of the world."
The Growing Corporate Cash Hoard!
By BRUCE BARTLETT
The tendency of corporations to stockpile cash abroad, rather than bringing it home, paying taxes and distributing it to shareholders, is a growing problem.
Last week, the investor David Einhorn sued Apple, in which his hedge fund has a large stake, over how the company can issue preferred stock. At the heart of the dispute is the $137 billion pile of cash that Apple has accumulated, and whether it could be used to better reward shareholders.
Today’s Economist
Perspectives from expert contributors.
Mr. Einhorn’s action highlights a growing problem: many corporations are holding vast amounts of cash and other liquid assets, using them neither for investment nor to benefit shareholders. These assets are largely earned and held overseas, and not subject to American taxes until the money is brought home.
Such tax-avoidance techniques, while legal, have come under increasing political attack. On Thursday, Senator Bernie Sanders of Vermont introduced legislation to end deferral and force multinational companies to pay taxes on their foreign-source income.
According to the Federal Reserve, as of the third quarter of 2012 nonfinancial corporations in the United States held $1.7 trillion of liquid assets – cash and securities that could easily be converted to cash.
By any measure, corporate cash holdings appear to be high and rising.
According to the Federal Reserve, nonfinancial corporations historically held liquid assets of 25 to 30 percent of their short-term liabilities. But this percentage began rising in 2001 and now tends to be in the 45 to 50 percent range. In the third quarter of 2012, it was 44.9 percent.
If this same money were in the hands of workers, local banks, and credit unions, it would be spent to buy food, build houses, pay taxes, buy cars, buy furniture, etc. which, in turn would be reinvested in the economy over, and over, and over again and would stimulate the United States economy seven to ten fold compared to sitting in oversea banks.
What do you think?
Here are some articles related to our economy.
It ...seems like things are going in the right direction?
Published February 11, 2013, 12:00 AM
Healing home market: Signs point to continued recovery in Duluth area!
Yolande Jenny’s experience selling her Duluth home last year is one of the success stories.
By: Candace Renalls, Duluth News Tribune
Yolande Jenny of Duluth stands in front of her former Duluth home, which sold in just two days for $10,000 more than her asking price. (Bob King / rking@duluthnews.com)
Yolande Jenny’s experience selling her Duluth home last year is one of the success stories.
In the midst of a housing rebound last spring, she sold her house in just two days.
“I was amazed,” said the retired University of Minnesota Duluth professor. “I put it up in May. I expected to spend the entire summer there.”
After 37 years in the house, she decided to sell because she also has a cabin to keep up, and she wanted less yard work. She also feared her pocket neighborhood, tucked between UMD and Arrowhead Road, might shift to student rentals.
With three purchase offers coming in the first day of the house’s listing, the sale to a couple offering $10,000 over the asking price was a quick one. Jenny hadn’t even found a condominium to move to yet. But working with the same real estate agent, she found one the next day in the nearby Aspenwood housing community. Within a few weeks, she had moved in.
Chalk up two home sales for Duluth.
As confidence returned to buyers last spring, listings were up, sale prices were up, and foreclosures were heading downward in Duluth.
--
Want to Make More than a Banker? Become a Farmer!
Farmers accross the country are enjoying the best economy in over 40years.
Stephen Gandel/Grand Island
Tools of the trade surround John Willoughby on his 2,000-acre (800 hectare) plot outside Grand Island, Neb.
If you want to become rich, Jim Rogers, investment whiz, best-selling author and one of Wall Street's towering personalities, has this advice: Become a farmer. Food prices have been high recently. Some have questioned how long that can continue. Not Rogers. He predicts that farming incomes will rise dramatically in the next few decades, faster than those in most other industries — even Wall Street. The essence of his argument is this: We don't need more bankers. What we need are more farmers. The invisible hand will do its magic. "The world has got a serious food problem," says Rogers. "The only real way to solve it is to draw more people back to agriculture."
It's been decades since the American heartland has been a money pump and longer since farming was a major source of employment. Old rural towns have emptied as families — and the U.S. — have moved on. Technology, service jobs and finance have been the basis of the economy since at least the 1980s. Farming became the economic equivalent of a protected species — supported by a mix of government handouts, lax regulation (agriculture is one of the few industries shielded from certain child-labor laws) and charity concerts. (See pictures of urban farming around the world.)
But in the past few years, thanks to a wealthier (and hungrier) emerging-market middle class and a boom in biofuels, the business of growing has once again become a growth business. At a time when the overall economy is limping along at an anemic growth rate of 1.9%, net farm income was up 27% last year and is expected to jump another 20% in 2011. Real estate prices in general are again falling this year. But according to the Federal Reserve, the average farm has doubled in value in the past six years. Farmland is quickly emerging as one of the year's hottest investments on Wall Street. "We've been doing this for a number of years, long before anyone thought this was sexy," says Jeff Conrad, who heads Hancock Agricultural Investment Group. "Now we are getting a lot of calls, and we are noticing more competition. There's a lot of interest in New York."
These days, a trip to Grand Island, Neb., a city of 48,500 surrounded by farms, is a trip to an economic bizarro land. Business is booming. None of the half-dozen or so local banks in town have failed or even come close to failing. In fact, profits are up. "A lot of local banks are sitting with a lot of cash," says Colby Collins, Grand Island branch manager for Five Points Bank. The largest local manufacturing plant, which makes combine harvesters, is at full capacity. Case IH plant manager Bill Baasch has hired 130 workers in the past nine months. Sales at Global Industries, a company based in Grand Island that makes grain-storage bins and other building materials, are up 130% since 2003. Tom Dinsdale, who owns the local General Motors car dealership, says 2010 was the best year he's ever had. Customers who would normally buy a Chevy Suburban are buying a Cadillac Escalade. Dinsdale is adding an infinity pool to his nearby riverfront second home. "Business is good," he says.
Even housing has done well in the past few years. Realtor Lisa Crumrine says her office has sold 48 homes in Grand Island in 2011 and that prices are up slightly. Greg Baxter, a cattle rancher and real estate developer, says he has sold six lots so far this year in a development just off Grand Island's commercial strip. Local homebuilders are busy constructing custom homes on the properties. That's one reason Nebraska's unemployment rate is 4.1%, the second lowest in the country behind that of mining-heavy North Dakota. Iowa's unemployment rate is a slightly higher 6%, still far lower than California's 11.7%, New York's 7.9% or the national average of 9.1%. (See TIME's photo-essay "Nebraskaland: A Tale of Two Farms.")
But some experts believe agriculture can do more to fuel job growth. Chuck Fluharty of the Rural Policy Research Institute at the University of Missouri sees a possible renaissance in farm towns. As money flows back into those areas, he predicts, farmers will need somewhere to invest. As they did with ethanol, he says, farmers will put their money in new industries that will create uses for their crops, like biodegradable plastics or other kinds of biofuels. The result will be more jobs. "Agriculture is the most critical story in our economy today," says Fluharty. "It will affect the future of the world."
The Growing Corporate Cash Hoard!
By BRUCE BARTLETT
The tendency of corporations to stockpile cash abroad, rather than bringing it home, paying taxes and distributing it to shareholders, is a growing problem.
Last week, the investor David Einhorn sued Apple, in which his hedge fund has a large stake, over how the company can issue preferred stock. At the heart of the dispute is the $137 billion pile of cash that Apple has accumulated, and whether it could be used to better reward shareholders.
Today’s Economist
Perspectives from expert contributors.
Mr. Einhorn’s action highlights a growing problem: many corporations are holding vast amounts of cash and other liquid assets, using them neither for investment nor to benefit shareholders. These assets are largely earned and held overseas, and not subject to American taxes until the money is brought home.
Such tax-avoidance techniques, while legal, have come under increasing political attack. On Thursday, Senator Bernie Sanders of Vermont introduced legislation to end deferral and force multinational companies to pay taxes on their foreign-source income.
According to the Federal Reserve, as of the third quarter of 2012 nonfinancial corporations in the United States held $1.7 trillion of liquid assets – cash and securities that could easily be converted to cash.
By any measure, corporate cash holdings appear to be high and rising.
According to the Federal Reserve, nonfinancial corporations historically held liquid assets of 25 to 30 percent of their short-term liabilities. But this percentage began rising in 2001 and now tends to be in the 45 to 50 percent range. In the third quarter of 2012, it was 44.9 percent.
If this same money were in the hands of workers, local banks, and credit unions, it would be spent to buy food, build houses, pay taxes, buy cars, buy furniture, etc. which, in turn would be reinvested in the economy over, and over, and over again and would stimulate the United States economy seven to ten fold compared to sitting in oversea banks.
What do you think?
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