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Presidential Debate of October 3, 2012

Saturday, October 6th, 2012

The long awaited first Presidential debate in this political election cycle took place in Denver, on October 3,  2012.  Presidential debates have long been more about style than substance however this debate has brought us into new territory. Complete video clip of the 1st Presidential debate of  October 3, 2012 involving President Barack Obama and Massachusetts Gov. Mitt Romney can be downloaded from our site.  The final Presidential debate is going to be held on  October 22  and will give attention to foreign policy as opposed to domestic policy.  Following the  first Presidential debate  between President Obama and Governor Romney, the general opinion appears to be that the Governor  did a lot to strengthen his position  while the President appeared to  fall flat on his performance .

Romney states the election is even bigger than he and Obama. He also seemed much more relaxed than President Obama, who spent most of his time detailing policies he would likely rather be done selling at this point. Romney also stated:

1.) that he supports education and learning as well but didn’t put together an education strategy in as much detail as the President

2.) that he would keep things as they have been

3.) suggested that the government need to grade schools in order that parents can make a decision where to send their kids

4.) that he loves great schools and the answer to excellent schools is fantastic teachers, so he rejects the notion that he doesn’t believe that the country requires far more educators

5.)  planned to lower income tax rates by 20% as well as remove the estate tax and the alternative minimum tax.

Romney challenged Obama’s claim that his health care program falls short of a sufficient method of getting individuals with pre-existing conditions medical health insurance.

Obama may undoubtedly turn into a tragic character and reiterated that he has tried his hardest as President to make the playing field fair and help America get over a debilitated economic climate.  He actually raised the $716-billion amount initially, stating that amount was “saved” by “no longer overpaying insurance companies, [and] by making sure that we weren’t overpaying providers.

Obama called for not offering tax breaks to businesses that are shipping jobs abroad.  Obama is certainly a talented and proficient speaker, and even though his overall performance in the debate wasn’t his greatest, the complaints struck me as being a tempest in a teapot.

Joe Frazier Dies at 67

Tuesday, November 8th, 2011

Joe Frazier has just passed on, died as a result of liver cancer. Our condolences go out to his families. He was a man that took boxing to new heights during his reign from 1965 to 1976.


Smoking Joe was not the biggest boxer but he made up for that with a devastating left hook that knocked out Muhammad Ali. He took on Muhammad Ali in 3 massive fights in the 1970’s, including the epic “Thrilla in Manila”.

 

For years Frazier and Ali shared a major rivalry, with Frazier winning the heavy weight title in 1970 by defeating Jimmy Ellis in the ring in 1970. He defeated him successfully 4 times before losing it to George Foreman.

 

 

His death is seen as a major and very sad story globally. He was a major institution in himself.

 

European Debt & the U.S. Markets

Thursday, May 13th, 2010

The following article provided by Ilona Dominguez tries to explain the Wall Street Crisis:

It would be wonderful if the U.S. financial markets could “decouple” themselves from what is going on in Greece, Portugal and Spain. Unfortunately, the debt situation in these countries is like a ripple in a pond. The question is, how strong will the ripple ultimately be and will its full force reach our markets?

The problem. Greece, Spain, Portugal, Italy and Ireland are all carrying enormous debts. On May 1, the New York Times put up a chart breaking this down: Greece owes $236 billion, which believe it or not is the smallest debt among these five countries. Portugal’s debt stands at $286 billion – and it owes roughly a third of that to Spain. Spain carries around $1.1 trillion in debt, and its economy is in horrible shape (20% unemployment). According to the Bank for International Settlements, it owes $220 billion to France and $238 billion to Germany. Ireland has $867 billion in debt, with about 40% of that owed to the U.K. and Germany. Italy owes $1.4 trillion, including $511 billion to France (almost 20% of France’s GDP).1

After the euro was launched, Greece had access to a whole bunch of cheap debt – and the country used it nonchalantly. In the years since the establishment of the euro, Greece’s debt-to-GDP ratio has remained repeatedly above 100%.2

Europe’s biggest banks are heavily exposed to these debts, and so are some of ours: names like Citigroup, Bank of America, Goldman Sachs, JPMorgan Chase and Morgan Stanley. In fact, these five banks have $2.5 trillion of cross-border exposure in the crisis, with Citigroup the most exposed. So you have potential risk to these banks, the euro, and the European and world economy.3

The offer on the table. Fortunately, Greece has the chance to accept a $146.5 billion bailout from the International Monetary Fund and the European Union in exchange for austerity measures (less government spending and a lower standard of living). This would help Greece avoid default – that is, having to renegotiate its debt and possibly assume more. (As a sovereign nation, Greece cannot go bankrupt.) Many economists think Greece will go into a deep recession (or depression) which could last most of the decade.2,4

The potential ripple. It looks like the bailout will be accepted by Greece and its EU partners. This means some confidence will return and other Eurozone nations with big debts will be slightly less threatened. However, Greece still has a risk of default.

Should Greece default even with the bailout, some major lenders in France and Germany would be hit very hard. They would have to raise capital ratios and reduce the frequency of loans. That would hamper economic growth in France, Germany and in turn across Europe. In coming months, the U.S. and other nations could feel the pinch from such a slowdown.4
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Keep in mind, Greece only represents about 2% of the Eurozone economy.2 In the roughest scenario, Spain or Italy defaults and the shock wave to European banks (and U.S. banks exposed to the debt) is significantly greater. What would happen then? A credit freeze across Europe? Diving stocks? A trashed euro? A flight to gold?
These are merely scenarios, not present realities – but in a nutshell, this is what had Wall Street biting its nails this spring.

So is the bailout truly a solution? It was unpopular throughout the EU, but the right step to take. The move certainly helped defend the stability of the euro; in fact, German Chancellor Angela Merkel and French President Nicholas Sarkozy have jointly pledged to preserve the euro’s value.5
The worry is that other bailouts will be needed to preserve the fiscal health of other Eurozone nations. We all hope these countries can effectively manage their debt levels, for the sake of the stock market and the economy in our country.

Ilona Dominguez is a Representative with World Group Securities and may be reached at www.ilonadominguez.com, 973-944-1726 or Ilona Dominguez

*This material was prepared by Peter Montoya Inc, and does not necessarily represent the views of the presenting Representative or the Representative’s Broker/Dealer. This information should not be construed as investment advice. Neither the named Representative nor Broker/Dealer gives tax or legal advice. All information is believed to be from reliable sources; however, we make no representation as to its completeness or accuracy. The publisher is not engaged in rendering legal, accounting or other professional services. If other expert assistance is needed, the reader is advised to engage the services of a competent professional. Please consult your Financial Advisor for further information.
Citations
1 – nytimes.com/interactive/2010/05/02/weekinreview/02marsh.html [5/1/10]
2 – sfgate.com/cgi-bin/article.cgi?f=/g/a/2010/05/07/investopedia44011.DTL [5/7/10]
3 – msnbcmedia.msn.com/i/CNBC/Sections/News_And_Analysis/_News/__EDIT%20Englewood%20Cliffs/Bove2.pdf [5/5/10]
4 – marketwatch.com/story/greek-president-the-brink-of-the-abyss-2010-05-06?dist=countdown [5/6/10]
5- washingtonpost.com/wp-dyn/content/article/2010/05/07/AR2010050701987.html [5/7/10]
6 – csmonitor.com/USA/Politics/2010/0428/Republicans-relent-clear-financial-reform-bill-for-debate/%28page%29/2 [4/28/10]