Not So Fast: Recovery Isn’t Just Around The Corner

At a National Funding Association luncheon on Wednesday, the speaker was Peter Tourtellot, a partner in the turnaround consulting firm of Anderson Bauman Tourtellot Vos & Co.  The title of this post was the title of his presentation.

Hmmm… aren’t things supposed to be getting better?

One especially interesting tidbit was his data on consumer confidence.  In the U.S. had risen from below 50 last summer up to 70 in January.  But will it stay up all year?  He noted a Booz and Co. survey indicating 27% of Americans say their own household’s finances will get worse in 2011.  Fewer than 1 in 5 of us plan to purchase clothing at pre-recession levels.  (Memo to self:  watch what you eat.  Exercise more.)  Yet consumer spending remains the primary engine of our economy.

In Canada there is quite a contrast.  Consumer confidence among the Canucks was about 90 in January and has consistently remained above 75.  Peter speculated that the difference may have to do with health insurance – Canadians do not fear financial ruin if they lose their job and their insurance, or if they get sick up there, eh?

Very interesting implications here…

Please add your comments… DB


One Response to Not So Fast: Recovery Isn’t Just Around The Corner

  1. Jeff Smith says:

    My opinion: At this time — well after the housing bubble-burst of the late 2000s — the level and expansion rate of U.S. Federal debt has a chilling effect on hiring and business investment. It is serving to create the specter of higher taxation and inflation. Until our government provides a credible path to sustainable economic behavior (on its own part, not the people’s), this chilling effect will affect business and, necessarily, the people that businesses employ (or might employ!).

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