There was further evidence this past month of a stabilizing US economy. Job losses seem to be moderating, although the economy is still not to the point of adding jobs. Also, a few companies announced that they will resume pay raises. The economy is at last moving in the right direction. If the trend can be sustained in the months ahead, it will bring welcome relief to US households.
On a different note, Exxon Mobil acquired a natural gas company this week. This news was significant in the context of the article that we brought you in the November edition. In the last decade, gas reserves in the continental United States have gone from 5-10 years of production to 80-100 years! We would not be surprised to see more acquisitions in the next year or so.
A great debate over financial system regulation should take center stage in Washington over the next 6 - 12 months. The two articles highlighted below provide some common sense insights into problems with the current and proposed regulatory framework. Importantly, both authors wonder why Congress seems to be on the verge of institutionalizing the previously implicit "Too Big to Fail" policy that contributed to the recent crisis.
Finally, we bring you 2 articles on personal financial issues that might be relevant to some of you.
Our next email will be in 2010. We wish you and your families a prosperous New Year.
