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S&P: ‘$46 Trillion Perfect Storm’ Closing in on US | Newsmax

Posted in U.S. Business by James Pat Guerréro on 05/14/2012

A new report from Standard & Poor’s estimates up to $46 trillion in refinancing and new financing needs by companies during the next four years — and credit markets may not be able to handle it, the Business Insider reports.
According to the report, the global “wall” of non-financial corporate debt maturities coming due from 2012 to 2016 isn’t new to market observers.
Less discussed is the incremental financing that corporate debt issuers will need during this period to fund capital expenditure and working capital growth. S&P’s ratings services estimates the total amount of refinancing and new money requirements during the next five years at between $43 trillion and $46 trillion.

Editor’s Note: The Final Turning Predicted for America. See Proof.

“This demand for funds will potentially compound the credit rationing that may occur as banks seek to restructure their balance sheets, and bond and equity investors reassess their risk-return thresholds,” the report’s authors wrote.
“These factors, amid the current eurozone crisis, a soft U.S. economic recovery following the Great Recession, and the prospect of slowing Chinese growth, raise the downside risk of a perfect storm for credit markets, in our view.”
Though S&P believes that this downside risk remains, it is their working assumption that global banks and debt capital markets will largely be able to continue to provide the majority of liquidity to allow most corporate issuers to proactively manage their forthcoming refinancings.
“However, the balance is fragile, and existing or new sensitivities could flare up, derailing this base case,” the authors write. “Governments and banking regulators are now not as well placed to counter another perfect storm scenario given that they have already expended so much of their fiscal and monetary arsenal to mitigate the problems arising in recent years.”
Other problems also loom for the U.S. economy.
At the end of this year, the Bush tax cuts are set to expire while automatic fiscal spending cuts are set to kick in, a combination known as a “fiscal cliff” that will do worse than suck an expected several hundred billion dollars out of the economy initially, says Maya MacGuineas, president of the Committee for a Responsible Federal Budget.
The combination of tax hikes and spending cuts will yank $7 trillion out of the economy within a decade and throw the economy back into recession.
“There is about $7 trillion there that … could be taken out of the economy in a really stupid way that would likely push us into a recession immediately,” says MacGuineas, according to CNNMoney.
Editor’s Note: The Final Turning Predicted for America. See Proof.

© 2012 Moneynews. All rights reserved.

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Newt Gingrich for President | James Pat Guerréro

Posted in Presidential Primary by James Pat Guerréro on 03/19/2012

As Americans tire of listening to the nightly political pundits, it becomes more clear how further away they get from the important issues: the economy, immigration reform, and debt. They seem to focus on the irrelevant as the U.S. media portrays it. It’s called serious American complacency – the idea that one is slough to think for oneself and follow one’s conscience in courage.

What makes a country strong is its courage to live, and live well at that – to live well enough to be the envy of the earth. The first step to get to this sublime goal is to have economic freedom. Then, civil freedom, then, political freedom. The first step is to be able to make a good living to support one’s family without government restriction. One sees in the union perspective the jealous desire of complacency. When who really pays for the fringe benefits of the unionized is the American taxpayer – those who actually work hard for every single dollar, who are truly conservative or who pay the dear price of loss for not being conservative.

Newt is the closest candidate to really understand the American need for economic freedom. He also is the closest to understanding what is truly needed for immigration reform as it’s tied so closely to the economy. As the November 2012 general election nears, it becomes blatantly obvious on how so close the country is on the precipice of danger or wonder. Choose wonder. Choose Newt for President.

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