Recent economic data from the previous month has sparked significant discussion. Reports on industrial production and the producer price index emerged on Wednesday, followed by the consumer price index on Thursday. Here are the key takeaways…
As per the Federal Reserve’s report, manufacturing saw a remarkable increase of 0.9 percent in December, marking its largest improvement since December 2010. Although manufacturing remains approximately 8 percent below its peak in July 2007, it has rebounded nearly 15 percent from its lowest point during the recession. On the other hand, industrial output is now less than 5 percent away from the pre-recession peak of September 2007 and has risen over 14 percent from its recession low in June 2009.
Indeed, the journey back to stability has been arduous. Whether industrial production will maintain its upward trajectory remains uncertain. It’s possible this could be a temporary surge before another downturn occurs. Only time will tell. However, we expect answers will emerge in due time Continue reading
In our Friday edition of the Economic Prism, we noted that despite the pervasive financial uncertainty, the U.S. economy appears to be on the rise. This optimistic outlook caught many of our readers off guard, prompting us to elaborate on this perspective.
First and foremost, we still believe that significant challenges lie ahead. The national debt, which has now surpassed 100 percent of gross domestic product, acts as a significant constraint on economic growth and threatens monetary stability. This debt dilemma will not resolve itself, and it might lead to either government defaults or rampant inflation as the Federal Reserve continues to print money to alleviate the burden.
However, economic trajectories are rarely linear. Fluctuations and cyclical rebounds can confound both skeptics and believers. At present, we suspect that the economy is experiencing a temporary detour on its path forward.
It’s essential to remember that our current financial and economic difficulties did not arise in 2008; they have deep historical roots, dating back nearly a century with the establishment of the Federal Reserve. The situation intensified in 1971 when President Nixon severed the dollar’s last connection to gold Continue reading
As we enter the New Year, early signs are encouraging. So far, the S&P 500 has risen by 2.9 percent, the Nasdaq by 2.5 percent, and gold has increased by 3.1 percent. Surprisingly, silver has also experienced a significant bump of approximately 4.5 percent.
There’s a palpable sense of optimism in the air, reminiscent of times prior to the housing market’s downturn. It feels like a long-overdue turnaround, doesn’t it?
Considering the struggles of recent years, who wouldn’t welcome rising asset prices? They can instantly boost one’s self-esteem, financial confidence, and even appearance! Suddenly, issues like a receding hairline or waistline seem less concerning as 401k statements reflect increasing balances. It’s easy to feel as though one’s investment skills rival those of Warren Buffett, or perhaps even surpass them Continue reading
Change is inevitable, and some companies simply cannot adapt. Kodak, once a titan in the photographic industry, is reportedly filing for bankruptcy protection after a storied 123 years. By market close on Friday, the once-revered company saw its stock tumble to $0.37 per share.
Kodak’s downfall can be attributed to a multitude of oversights. Most notably, its failure to pivot towards digital photography proved fatal. The company’s long-standing dominance in the film market blinded it to the impending shift towards digital technology.
By the time Kodak acknowledged its miscalculation, the industry had transformed. Though significant investments were made in digital products, it was too late to regain ground lost to competitors. Kodak found itself trapped in a bygone era while the world embraced the digital age.
In conclusion, as consumer preferences shifted away from film, Kodak’s revenue streams began to dry up, even as legacy costs and liabilities mounted, ultimately leading to unsustainable operations. Over the past decade, Kodak has struggled with consistent losses, making its bankruptcy inevitable Continue reading
