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Looking Back at 2012 Every year, I usually write about the past year with mixed feelings, at times nostalgic for those events and at times, glad that the year is over. 2012 brought us highs, lows, and surprises. The dominant theme of 2012 was the Presidential election. per gallon price level rather than the $4.00
“This advisory reminds financial institutions engaged in agricultural lending to maintain sound underwriting standards, strong credit and administration practices, effective riskmanagement strategies, and appropriate allowances for losses and capital levels through the credit cycle,” the FDIC statement said.
On June 28th, the Supreme Court upheld the Affordable Care Act as constitutional, calling penalties on individuals for failing to purchase health insurance a “tax.” This decision sets in motion a series of steps to implement the law over the next few years along with the estimated $813 billion in taxes and levies over the next ten years.
And don’t forget that they are still finishing the $667 billion Operation Twist Program by year end 2012, where they sell shorter maturities and buy longer term ones to push interest rates lower. In March, 2012, the Bhutan GNH Index was on a UN meeting agenda, no doubt to promote the idea of promoting well being over weak economies.
Congress entered the mix and extended the Bush tax cuts for two years and unexpectedly added new tax cuts for consumers and businesses. Combined these tax breaks can provide up to 0.5% Combined these tax breaks can provide up to 0.5% The intent was to keep the crazy low rates low, or push them even lower.
Many businesses remain uncertain due to the increased regulatory burden, the drama in the insurance markets due to Obamacare, income tax changes, and a still high unemployment rate at 7%, which serves to keep personal incomes in check and consumer spending under wraps. Thanks for reading and Happy New Year!
Economists keep ratcheting down their projections for GDP for 2011 and 2012, probably as a result of the weaker forward looking indicators. No extended tax cuts and business credits are in our future. in May, will be the only tax cut we will get. The latest Wall Street Journal Survey of Economists shows projections of 2.7%
But we know that only three things in life are certain—death, taxes, and a Fed that goes too far. or more, we can expect the same psychological reaction from consumers—reduced spending—just as they would react to higher taxes. Year-to-date in 2012, the S&P 500 and Nasdaq indices are up 12.6% and 20%, respectively.
Future tax rates and compliance costs are also causing uncertainty, most notably from the still unresolved situation with the Bush tax cuts set to expire in 2011, health care costs, and financial reform costs. The Federal Reserve will keep the short term Fed Funds rate at 0% to 0.25% well into 2011 and likely into 2012.
In another easing action dubbed “Operation Twist,” the Fed stated that they will sell $400 billion of their shorter securities (less than 3 year maturities) and buy the same amount of longer securities (6 to 30 year maturities) by June, 2012. This will act like a tax cut at just the time when it seems Washington DC will not provide one.
Falling oil prices, and falling gasoline prices, are like a welcome tax cut for consumers who are saddled with low wage growth and lack of good jobs. Spending has been weak since December and the savings rate has risen to 5.8%, which is the highest since December, 2012. Thanks for reading!
The markets believe the chance of tax hikes, repeals of tax cuts, and gigantic initiatives are greatly diminished. Previously, researchers in 2012 discovered its most famous particle, the Higgs Boson, which is a key building block of the universe. Stock prices are rising strongly, but bond prices have fallen from their highs.
Stratyfy: Raised $12M, decision intelligence technology gaining traction, particularly in riskmanagement. Spring 2022 (San Francisco): Array: Credit and identity management platform, seeing increased adoption due to robust features and user-friendly interface.
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