We are just a few days from the start of Q4, and -- in the context of this year's economic and political uncertainty -- two phrases come to mind: "moving off the dime" and "turning on a dime." More about this in a moment.

Certainly there have been positive developments this month. Congress voted to finance government operations through March. The Federal Reserve affirmed short-term interest rates and implemented the third round of quantitative easing. This additional stimulus supports goals to reduce long-term interest rates; spur lending, investments and spending; and lower unemployment. And last week the DJIA reached ninety-six percent of its all-time high set early in October 2007.

Yet ongoing economic and political uncertainty -- a pervading sense of not knowing critical market variables -- continues to make Los Angeles and Southern California executives reluctant to invest and hire. We need to know how Congress will move past gridlock and act to avert the fiscal cliff. Will there be agreement on the deficit, and what will it look like? Will tax cuts be extended, or will taxes be increased? Will automatic reductions in government spending go into play?

Moving off the dime - President Reagan invoked this phrase as he encouraged Congress to get off the dime and pass the budget in 1982. Significant events in the next quarter are poised to move the economy and this sense of uncertainty off the dime. We will know the party, policies and priorities of the President and Congressional leaders. We will also know about income taxes, government spending, and hopefully long-term deficit reduction plans.

Turning on a dime - As these Q4 events deliver resolution, business leaders must be prepared to turn on a dime. The phrase implies the ability to turn quickly inside a tight radius -- that is, easily and instantly change to a new, well-informed direction.

Successful execution in response to Q4 developments means assessing various scenarios, preparing alternate plans, and knowing how to allocate your people and financial resources. We welcome the opportunity to share with you how our CFO expertise can help your company both prepare for alternate scenarios and achieve above-average performance now.

An area that we find generates a great deal of interest right now is cash management. You'll notice below three of this month's articles address cash flow, business loans and investing excess cash.

I invite you to contact me -- by replying to this email or calling me at 800.276.1750 Ext 101 -- to discuss ways to improve your cash flow, as well as ways to prepare for Q4 outcomes.

Sincerely,

Arthur F. Rothberg

Managing Director