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Unformatted text preview: owth and innovation be overcome, then an abundant labor force serves as fuel
for growth, but absent that, it serves as a drag on
the economy. At present, interest rates are low,
and the powers that be seem predisposed to doing
everything they can to keep them that way. The
yield on the 10-year treasury has averaged well
below 3% in 2011, and as the fourth quarter closes
it has been trading on either side of 2% and has
traded below 1.75%. This should help to support
the current level of growth. However, until there
is greater clarity regarding the plan and fallout
from the sovereign debt crisis, until we know who
is going to be the next president, until we know
what the plan is for the leadership of the Federal
Reserve, of tax policy and healthcare, not to mention what the plans are for facilitating job creation
and innovation, there will be a lid on upward
potential and a bias toward further erosion. 2001 2002 2003 2004 2005 Source: U.S. Treasury. 58 Page 53 2006 2007 2008 2009 2010 2011 The U.S. banking s...
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This note was uploaded on 02/11/2013 for the course MGMT 231 taught by Professor Yu during the Spring '13 term at Bauder.
- Spring '13
- The Lottery