Featured in Richard Suttmeier’s Stock Strategies Blog on EQUITIES Magazine Website
Richard Suttmeier’s latest post,” GDP at 3.5% in Q3 Does Not Mark the End of Recession”, examines why positive GDP does not end Recession, tax on larger banks, GMAC, and more housing woes.
Business investment was down 2.5%, ex-motor vehicle (cash for clunkers) GDP was up just 1.9%, and Home Investment was up 23.4% thanks to the $8,000 first time homebuyer tax credit. The US Treasury will likely invest $2.8 to $5.6 billion in GMAC using TARP funding, bringing taxpayers’ total investment from $15.3 to $18.1 billion. The government insists that GMAC is too important to the revival of the auto industry.
Moreover, Congress wants to levy the cost of companies deemed “Too Big to Fail” on the 117 FDIC-insured financial institutions with more than $10 billion in assets. Still, Cash for Clunkers is gone and the first time homebuyer tax credit will likely be extended but only through April 2010. Without consumer confidence and without job creation, the Recession continues.
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About Richard Suttmeier:
Richard Suttmeier’s latest blog analyzes earnings from Intel, the most important technology stock, JP Morgan Chase, the most important “too big to fail” bank, and break-out’s for Comex copper and Nymex crude oil.
Richard Suttmeier is the chief market strategist for ValuEngine.com. Richard is an industry leader on the housing market and banking system and writes a newsletter covering The Great Credit Crunch. He produces a List of Problem Banks by name. He produces daily and weekly briefings covering the US Capital markets. Richard Suttmeier’s ValuEngine Four In Four video is available on forextv.com.
About EQUITIES Magazine:
Since 1951, EQUITIES has served both retail and institutional investors by examining industry trends, analyzing strategies and opportunities, and profiling financial leaders and emerging public companies. Its global audience increased dramatically after the launch of its European and digital versions, as well as its website, which provides free real-time market quotes and a free customizable, real-time portfolio-management interface. EQUITIES is also one of a select group of publications available on the Apple iPhone.
