Firas N. Habach's Economics Blog

After observing several positive news over the christmas season, the high purchase volumes and revenue generation growth YoY, it is once again up to the Rating Agencies to slap economies back to reality. Whether it is a reality or a political move in the first stance, is a decision for others to make. The below diagram is nevertheless a pretty representation of what feast awaits S&Ps, Moody’s and FitchRatings …

The first half of 2012 is likely to be a period of strong rating downgrades, therefore smashing the US & European government’s credibility with rating agencies and investors. This could lead to a a slowdown of capital and trade flows into central europe, putting perhaps all the efforts of the governments to avoid a EURO crisis to a test.

A grim outlook …

When considering the different parties within the U.S. and watching the quarrels throughout the years, one starts to believe that both parties are only after the money, yet the voters, from the very poor to the very wealthy, dont seem to reflect that fact. Is this an indication to absolute ignorance or the fact that, in times of election, the most useless matters contribute to the voting decision that perhaps the potential of being able to afford a standard of living in the years to come?

Here is an interesting extract from an essay written by myself and a colleague concerning democrat/republican behaviour: Continue reading →