From Graceland Updates / By Stewart Thomson / Tuesday, 17 April 2012
1. What economic phenomenon is most worrisome to Dr. Ben Bernanke? To view a picture of the answer, please click here now.
2. A higher oil price is Dr. Bernanke’s biggest fear, and I believe a new move higher is beginning right now.
3. David “SuperDave” Greenlaw is Morgan Stanley’s chief U.S. fixed income strategist. A number of Morgan Stanley’s top economists, including SuperDave, have issued substantial warnings that the American economy faces what they term a “fiscal cliff” in 2013.
4. There is talk of dividend tax hikes, the end of the Bush tax cut extensions, and it’s conceivable that both individuals and American corporations could enter the year 2013 with no idea what their tax rates will be for the year.
5. How much fiscal tightening are you facing in 2013? Well, Dave argues that the total amount of fiscal tightening will not be the “3.5% of GDP” number bandied about by many respected economists and by the congressional budget office.
6. He feels the American economy is facing a 5% hammer that will send America back into recession in 2013.