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Dodd Frank

Northern NV Will Remain Prosperous in a National Recession

My last column (Sunday, June 24th) was about the possibility of a recession near-term.  On that same RGJ Business front page, the headline was “Reno Median Home Price Tops $350k” and “May Unit Sales Second Highest Recorded.”  The two stories seem incongruent.  But they aren’t. Impact of the Recession In the financial meltdown of the last recession, the Nevada economy was one of the hardest hit in the nation.  It …Read More

Market Melt-Up: Caution – Sentiment in Nosebleed Territory

Since my last column, the Dow Jones Industrial Average (DJIA) did indeed hit 20,000 and has since gone well beyond.  Most of the post-election run-up initially appeared to have occurred in the November 8th to December 20th period when the index went from 18,333 to 19,975, a rise of 1,642 points (7.9%).  Over the next 44 days, until February 2, the DJIA was flat, actually losing 116 points.  But since …Read More

Post-election market drama

Last Tuesday evening, while dining with family and business associates, I had one eye on the elections and the other on the Dow Jones Futures Index, a proxy for the Dow Jones Industrials (DJIA) in the non-trading hours. At one point, the futures were down 900 points, and I was drooling over the prospect of one of those quite rare buying opportunities produced by extreme market fear, irrationality and emotional distress. …Read More

An approaching financial crisis — reality or myth?

The data seen so far in Q2 are somewhat better than Q1, and Q1’s real GDP growth has been upgraded from a miserable 0.5 percent to a miserly 0.8 percent. The U.S. economy remains in first gear, mainly due to the oil patch and continued sluggish manufacturing activity. With such poor results from a record-breaking level of deficit spending for the last decade, it isn’t any wonder that the purveyors …Read More

Economic predictions for 2016

As the year ends, it is customary to write a column that attempts to forecast the major economic trends of the new year. Looking back, five of my six predictions last December were spot on (only missed the continuing weakness in manufacturing). I hope the forecasts that follow do as well. Jobs, jobs, jobs Jobs and the consumer have been the bright spots in the U.S. economy and it appears …Read More

Barone: Housing doldrums a supply problem

One of the key indicators of U.S. economic health is housing – both the turnover of the existing housing stock and the construction of new units. Existing home sales, new home sales, and housing starts all peaked earlier this year. Given the health of the U.S. consumer, as vividly demonstrated in the employment and auto sales data, it is puzzling why the housing numbers now appear to be so anemic. …Read More