The Fix Is In?

So how are we going to fix it?

How will Washington turn the battleship and move the Federal Budget towards something sustainable? We can’t run 10% deficits forever, when our economy only grows, on average, 5% per year.

The President is on the right track. He’s asked two veteran pols to head up a commission that will give political cover for some unpopular recommendations. It’s not just the current negative cash-flow. If the government accounts for its promises like businesses have to, they’d report a deficit almost five times the size of the economy.

So some promises have to change. That means entitlements need to be adjusted. And revenue, a.k.a. taxes, has to go up. Policies like this are often a path to minority status. So it’s no wonder that Washington has kicked the can down the road for years.

Nobody likes austerity. But when the bills come due, they have to be paid. And when there’s not enough cash to vacation at Disney, you just might have to go camping instead. If you don’t want your creditors to decide for you, you need to make some hard decisions yourself.

Douglas R. Tengdin, CFA
Chief Investment Officer
Hit reply if you have any questions—I read them all!

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By | 2017-07-17T12:35:20+00:00 March 16th, 2010|Global Market Update|0 Comments

About the Author:

Mr. Tengdin is the Chief Investment Officer at Charter Trust Company and author of “The Global Market Update”. The audio version of each post can be heard on radio stations throughout New England every weekday. Mr. Tengdin graduated from Dartmouth College, Magna Cum Laude. He received his Master of Arts from Trinity Divinity School, Magna Cum Laude and received his Chartered Financial Analyst (CFA) designation in 1992. Mr. Tengdin has been managing investment portfolios for over 30 years, working for Bank of Boston, State Street Global Advisors, Citibank – Tunisia, and Banknorth Group. Throughout his career, Mr. Tengdin has emphasized helping clients manage their financial risks in difficult environments where they can profit from investing in diverse assets in diverse settings. - Leave a comment if you have any questions—I read them all! - And Follow me on Twitter @GlobalMarketUpd

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