18. May 2012 by Jim Sutliff.

Fitch Ratings downgraded Greece one notch from B- to CCC.  A lower grade would place Greece in default.  The Greece downgrade was partially due to the risks associated with a possible exit from the European Union.  Greek elections are expected to be held in mid-June and could produce a government that does not support the austerity plan.

To read a related Businessweek article, please click here:

http://www.businessweek.com/ap/2012-05/D9UQLLJO1.htm

James Sutliff

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10. May 2012 by Jim Sutliff.

Indiana Republican Senator Dick Lugar was defeated in a Republican primary by Richard Mourdock.  Senator Lugar has held the Indiana Senate seat for 35 years.  Mourdock is the Indiana State Treasurer and won the election despite being heavily outspent by Senator Lugar.  Mourdock will face Democratic candidate Joe Donnelly in the November election.  The Indiana Senate seat is likely to remain Republican.

To read a related Fox News article, please click here:

http://www.foxnews.com/politics/2012/05/08/longtime-gop-sen-richard-lugar-loses-indiana-primary-to-challenger-richard/

James Sutliff

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2. March 2012 by Jim Sutliff.

Moody’s lowered the credit rating for Greece to C from Ca.  Moody’s indicated that the debt restructuring would provide investors with significantly less than their face value.  Earlier in the week, Standard & Poor’s indicated that the restructuring plan for Greek debt was a selective default.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2012-03-02/greece-ratings-cut-by-moody-s.html

Jim Sutliff

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19. February 2012 by Jim Sutliff.

Congress passed a measure to extend the payroll tax cut for the remainder of 2012.  The measure passed the House 293-132 and the Senate 60 -36.  In the Senate, 14 Republicans voted for the measure and 5 Democrats and 1 Independent were opposed.  The bill will lower payroll taxes for 160 million workers.

To read a related Roll Call article, please click here:

http://www.rollcall.com/news/congress_seals_the_deal_sends_payroll_tax_bill_to_obama-212521-1.html?pos=hbtxt

Jim Sutliff

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16. February 2012 by Jim Sutliff.

The House and Senate could vote on the payroll tax deal as early as Friday.  Four Democratic Senators and all 13 House Representatives at the payroll tax conference signed the agreement.  Republic Senators did not sign the agreement but that should not prevent passage of the tax cut measure.  The payroll tax cut agreement resolves an issue early in the election year.

To read a related Roll Call article, please click here:

http://www.rollcall.com/news/conferees_sign_payroll_tax_deal-212503-1.html?pos=hftxt

James Sutliff

Posted in Congress, Tax, Economy, Presidential, Budget, 2012, Republican, Regulatory, Democrat, Business, Election, General, Politics, Administrative | No Comments »

13. February 2012 by Jim Sutliff.

Republican leaders in the House are supporting the extension of the payroll tax cut without reductions in spending.  This clears a major hurdle in negotiations to extend the payroll tax cut which applies to 160 million workers.  The payroll tax cut is set to expire at the end of February.  The payroll tax cut extension may reach the House floor by the end of the week.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2012/02/13/usa-taxes-payroll-idUSL2E8DDC0D20120213

Jim Sutliff

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22. January 2012 by Jim Sutliff.

Newt Gingrich won the South Carolina primary and has the lead in delegates for the Republican Presidential nomination.  Gingrich finished with 40% of the vote and gained momentum heading into Florida.  Romney came in second with 27% and Santorum finished in third with 17% of the vote.  The Gingrich win should help with fundraising as well as building a campaign infrastructure.  The Florida primary will be held on January 31st and is a winner take all contest.  Also, Florida is a closed primary and only Republicans are allowed to vote in the contest.  In addition, there is expected to be over 200,000 votes cast through early voting and absentee ballots.  The next Republican Presidential debate will be held in Tampa on January 23rd.  There are 50 delegates at stake in the Florida Republican primary.  After Florida, the next contests are the Nevada and Maine Republican caucuses scheduled for February 4th.

To read a related Roll Call article, please click here:

http://www.rollcall.com/news/Gingrich-Rolls-to-Victory-in-South-Carolina-211662-1.html?pos=hftxt

To read a related MSNBC article, please click here:

http://firstread.msnbc.msn.com/_news/2012/01/22/10210334-first-thoughts-the-race-is-on

Jim Sutliff

Posted in Economy, Infrastructure, Presidential, 2012, Primary, Debate, Tax, Republican, Election, Democrat, Fundraising, General, Politics, DC | No Comments »

13. January 2012 by Jim Sutliff.

According to the Commerce Department, the U.S. trade deficit increased by 10.4% to 47.8 billion in November.  The increase was larger than economists had expected and was the widest trade deficit since June.  Petroleum products accounted for a significant amount of the increase in imports.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2012-01-13/u-s-trade-deficit-widened-more-than-forecast-to-47-8-billion.html

Jim Sutliff

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7. January 2012 by Jim Sutliff.

The Institute of Supply Management’s factory index rose to 53.9 for the month of December.  The increase marked the fastest that U.S. manufacturing has expanded in the last 6 months.  The jobs report also showed gains for the month of December.  Positive factory and jobs data helped send Treasuries lower in trading last week.  The Ten year note yield rose to 1.96%.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2012-01-07/treasuries-drop-as-reports-showing-economic-strength-damp-demand.html

Jim Sutliff

Posted in Infrastructure, Economy, Treasury, Federal Reserve, Regulatory, Business, General, Administrative | No Comments »

27. December 2011 by Jim Sutliff.

Obama is set to nominate Jeremy Stein and Jerome Powell to the Federal Reserve Board of Governors.   Jeremy Stein has worked as an advisor to the Treasury secretary during the Obama administration.  Jerome Powell worked at the Treasury during the term of George H.W. Bush.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2011/12/27/us-usa-fed-whitehouse-idUSTRE7BQ0RA20111227

James Sutliff

Posted in Federal Reserve, Economy, General, DC, Business, Administrative | No Comments »

22. December 2011 by Jim Sutliff.

House Republicans are set to approve a two month extension of the payroll tax cut.  House Republican John Boehner has come to an agreement with Democratic Senator Harry Reid.  The agreement would extend the tax cut for two months and begin negotiations to work out a deal for a full year extension. The payroll tax cut lowers the rate from 6.2% to 4.2%.

To read a related Roll Call article, please click here:

http://www.rollcall.com/news/john_boehner_harry_reid_reach_deal_payroll_tax_holiday-211247-1.html?pos=hftxt

Jim Sutliff

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21. December 2011 by Jim Sutliff.

Italian third quarter Gross Domestic Product has fallen 0.2% from the second quarter.  This may mark the fifth recession for the Italian economy since 2001.  Although exports grew 1.6%, consumer spending declined 0.2% and investment contracted 0.6%.  In addition, Italy has taken steps to lower spending that could slow economic growth in the near term.

To read a related Bloomberg article, please click here:

http://www.bloomberg.com/news/2011-12-21/italian-gdp-shrinks-in-third-quarter-signaling-fifth-recession-since-2001.html

James Sutliff

Posted in Budget, Economy, General, Business, Administrative | No Comments »

17. December 2011 by Jim Sutliff.

The Senate passed a two month extension of the payroll tax cut.  On Saturday, the measure passed the Senate with a vote of 89-10.  The payroll tax cut amounts to a two percent drop from 6.2% to 4.2%.   An increase in fees for new mortgages backed by Fannie Mae and Freddie Mac will cover the cost of the tax cut.

To read a related MSNBC article, please click here:

http://www.msnbc.msn.com/id/45707185/ns/politics/

James Sutliff

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14. December 2011 by Jim Sutliff.

The Euro fell below $1.30 in afternoon trading on Wednesday.  The Euro has not traded below $1.30 since mid-January of this year.  Traders are watching Standard & Poor’s for any indications of sovereign debt downgrades.  France is one of the nations that could lose triple-A status.

To read a related Wall Street Journal article, please click here:

http://online.wsj.com/article/SB10001424052970203893404577097810020345818.html?mod=WSJ_hp_LEFTTopStories

Jim Sutliff

Posted in Budget, International, Economy, Infrastructure, Business, General, Administrative | No Comments »

12. December 2011 by Jim Sutliff.

Republican and Democratic officials have agreed on a spending bill through October 1st 2012.  Specific details of the agreement are expected to be released on Tuesday.  The measure still requires approval of the Senate and the House of Representatives.  The current spending bill is set to expire this Friday.

To read a related Reuters article, please click here:

http://www.reuters.com/article/2011/12/13/us-usa-budget-idUSTRE7B72MK20111213

James Sutliff

Posted in Infrastructure, Congress, Economy, 2012, Budget, Tax, Republican, Business, Democrat, General, Politics, Administrative | No Comments »