Archive for September 16th, 2008

The economy pulled out of a dangerous rough patch in the spring, thanks largely to strong exports, but the rebound isn’t expected to last. Economic slowdowns overseas could make exports tail off just as Americans are hunkering down after the bracing impact of rebate checks wanes, plunging the country into another rut later this year.

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Just came back from a 2 week trip to Italy on business and pleasure.  The streets of Venice and Rome are empty compared to previous years and shopkeepers are crying the blues.  In restaurants, boutiques and jewelry shops, besides a major downturn in business, the Euro is making everything so expensive.

While sitting on top of the Danieli Hotel in Venice, we enjoyed the magnificent scenery, as well as great pasta for 2 and wine.  The tab, $220.  Well the view was great.

Bottom line, the downturn has arrived in Europe and will be effecting retail, tourism and other business segments.  The CURE- well the unthinkable.  Financial and Business restructuring.  As in various Europe countries, the US must realize that we are an insolvent country.  You cannot have continued or growing entitlements and no tax increase.  You cannot continue the spending/deficit’s without the dollars to pay for it.

The challenge with both candidates for President are their unrealistic assumptions. We must cut taxes, stimulate the economy, restructure entitlements and government entities and curb spending.

Like in all restructurings, there will be some pain, but the long term outlook for our children will be improved.

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