Sunday , 21 July 2024

4 Graphics That Put Important Economic & Investing News Into Perspective

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Say “goodbye” to long-winded commentary. Instead, say “hello” to  easy-to-understand graphics to put important economic and investing news  into perspective for you and some quick-hit observations on non-stop government spending, the importance of emerging  markets and the next sovereign debt crisis. Words: 340; Charts: 4

So writes Louis Basenese ( in edited excerpts from his original article entitled Friday Charts: Spendaholics, Sovereign Debt and Proof That Emerging Markets.

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Basenese goes on to say, in part:

Certainties: Death,  Taxes… and More Government Spending

Finally!  Congress reached a compromise to avert the dreaded Fiscal Cliff. Don’t  worry about all the details contained in the 154-page bill, though. This  graphic tells us all we need to know.

As  you can see, all the new taxes don’t go very far towards covering up  Washington’s spending problem for the coming year.

Lest you think I’m manipulating  statistics to try to hide a delayed benefit, here’s another chart from the non-partisan  CBO. It shows the impact of the compromise over the next decade.

I still see a (spending) problem  somewhere – do you?

Definitive Proof That Emerging Markets Matter

Do you doubt the significance of emerging  markets? Here’s proof that they’re a really, really big deal and yet, according to BlackRock,  investors only allocate 5% of their capital on average to emerging markets

 Call me crazy, but I bet that allocation  goes up in the future – and rightfully so. If you want to get a head start, a  little birdy mentioned something about South Korea. (Details are here.)

Cry for Argentina!

The United States narrowly averted a  fiscal crisis – for now, at least – but not all countries promise to be so lucky.  Particularly Argentina.

Argentina is the only country that witnessed an increase in the cost to insure against a default last year, as  represented by credit default swap (CDS) prices and that’s not the only troubling statistic, either.

Since 1800, Argentina has reneged on  its debt seven times (that’s one more time than Greece over the same  period) so that makes Argentina a serial  defaulter and debt restructurer. Misery loves company, Argentina. Greece  is waiting.

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Editor’s Note: The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article. Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.

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