An Excellent Assessment of Our Current Economic Environment – A MUST Read

I have not read a better, more succinct explanation and assessment of our current economic environment. Richard Fisher is top drawer in my book. I especially like this paragraph:

“I maintain that no matter how much cash you have on your balance sheet, or how compliant your banker might be, or how cheap the cost of money, you will not commit substantial capital to expanding your payroll or investing significant amounts to expand plant and equipment until you know what it will cost you to run your business; until you know how much you will be taxed; until you know how federal spending will impact your customer base; until you know the cost of employee health insurance; until you are reassured that regulations that affect your business will be structured so as to incentivize rather than discourage expansion; until you have concrete assurance that the fiscal “fix” the nation so desperately needs will be crafted to stimulate the economy rather than depress it and incentivize job creation rather than discourage it; or until you are reassured that the sinkhole of unfunded liabilities like Medicare and Social Security that Republican- and Democrat-led congresses and presidents alike have dug will be repaired so that our successor generations of Americans will prosper rather than drown in dark, deep waters of debt.”

Rarely do I laugh out loud when reading a white paper or a speech, but this comment got me laughing pretty good because it seems that so many economists do speak in technical terms:

“My colleague Sarah Bloom Raskin—one of the newest Fed governors, and a woman possessed with a disarming ability to speak in non-quadratic-equation English…{emphasis mine, on the part I found funny}”

I encourage everyone to read this speech.

Bill English, CEO