18 09, 2018

Wesbury’s Outlook – The Growing Deficit

By |2018-09-18T10:47:47+00:00September 18th, 2018|Governments, Interest Rates, Policy, Spending, Taxes|0 Comments

The U.S. federal government reported last week that it ran a deficit of $214 billion in August, the fifth largest deficit for any single month in US history. The Congressional Budget Office thinks these numbers are consistent with a budget deficit of about $800 billion for Fiscal Year 2018, which ends September 30. If so, [...]

11 09, 2018

Wesbury’s Outlook -Wage Growth Steps Up

By |2018-09-11T15:27:01+00:00September 11th, 2018|Financial, Governments, Policy, Taxes|0 Comments

Friday's jobs report finally included what appears to be evidence of the long-awaited acceleration in wage growth. Average hourly earnings grew 0.4% in August, which meant they were up 2.9% from a year ago, the largest 12-month increase since the economic recovery started in mid-2009. By contrast, these wages were up 2.6% in the 12-months [...]

28 08, 2018

US Stops Subsidizing Global Growth

By |2018-08-28T14:29:40+00:00August 28th, 2018|Financial, Governments, International, Policy|0 Comments

For decades the United States has, directly and indirectly, subsidized global growth. For example, after World War II, the U.S. provided direct economic aid to Western Europe with the Marshall Plan, while also helping to rebuild Japan. And since then, we have provided never-ending direct aid to foreign countries, which has been a constant political [...]

21 08, 2018

Wesbury’s Outlook – Capitalism Works, Don’t Change It

By |2018-08-21T01:48:28+00:00August 21st, 2018|Financial, Governments, Media, Policy|0 Comments

"Wealth creation" versus "the redistribution of wealth" is an age-old political/economic battle. And once again, Senator Elizabeth Warren - among others - has capitalism in the crosshairs. Adam Smith defended capitalism in 1776. Karl Marx attacked it in the 1800s. William Jennings Bryant attacked it; Grover Cleveland defended it. FDR attacked it; Ronald Reagan defended [...]

13 08, 2018

Wesbury’s Outlook- The Kevlar Economy

By |2018-08-13T22:52:25+00:00August 13th, 2018|Bullish, Financial, Governments, Policy, Spending|0 Comments

Since March of 2009, the predictions of economic, and stock market collapse have been non-stop. Doom-and-gloomers have been unrelenting. And it's doubly frustrating since you can't disprove a negative until it doesn't happen. We have written hundreds of pieces since the recovery - and bull market – began, arguing that the pessimism was unjustified. We've [...]

31 07, 2018

Wesbury’s Outlook – The Economic Surge

By |2018-07-31T21:26:27+00:00July 31st, 2018|Fed Reserve, Financial, Governments, Policy, Spending, Taxes|0 Comments

Paul Krugman, Larry Summers and Bob Gordon have some 'splainin to do. Where's that "secular stagnation?" Since 2009, they, along with many others, have said the US economy is stuck at 2% real growth. Their theory got traction after 2009, as the U.S. saw what we called a Plow Horse Economy. But, we never believed [...]

3 07, 2018

Wesbury’s Outlook – Election Outlook

By |2018-07-03T08:51:08+00:00July 3rd, 2018|Financial, Governments, Policy, Spending, Taxes|0 Comments

At least three reasons suggest the Democrats should be optimistic about taking control of the House this November. First, the party controlling the White House typically loses seats in mid-terms. These include "tidal waves" against the president's party like in 1994 and 2010, when newly-elected presidents Bill Clinton and Barack Obama watched their parties lose [...]

10 04, 2018

Wesbury’s Outlook – A Generation of Interest Rate Illiterates

By |2018-04-10T09:34:27+00:00April 10th, 2018|Fed Reserve, Financial, Governments, Interest Rates|0 Comments

An entire generation of investors has been misled about interest rates: where they come from, what they mean, how they're determined. Lots of this confusion has to do with the role of central banks.  Many think central banks, like the Fed, control all interest rates.  This isn't true.  They can only control short-term rates.  It's [...]

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