Who’s the leader of the Pack? No one.

Posted on August 17, 2010


Who’s the leader of the Pack? No One

The US dollar is up… for today anyway.  It’s down tomorrow. The Nikkei (Japan) stock market is up, and the US and Europe equities market is down. Recently, Spain’s debt rating gets downgraded by Fitch (Rating agency) impacting the Euro, sovereign and corporate debt pricing, stock pricing and the perception of the ability of Europe to grow its economy. Now the European stress test for banks are providing some support for the Euro. The key German banks seem to be holding up okay.

US economic statistics are on a roller coaster, with no convincing, confidence building employment numbers. Big US corporations are showing decent earnings, but ARE STILL NOT HIRING. Through outsourcing (lower employment cost) or good productivity with present workforce (people are happy to have a job), large employers are not under pressure to grow their payrolls.

It used to be when one region of the world was in trouble (recession or slowdown), another region would or could step up to be the steam engine to drive global economy recovery. Now, everyone has caught the cold, except maybe China, and they have issues of their own.

All around the world, uncertainty and politics rule the day. What reads well or shows well on television or on the internet gets the playing time. Difficult decisions and measures need to implemented. Initially, and unfortunately, it appeared that few politicians or leaders had the courage to tell their constituents what they didn’t want to hear. There are difficult times ahead.

Joel Borshof

President, IMEX

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