January, 2009

Sometimes the Congressional hearings themselves are much funnier than the skit on SNL that might follow on the weekend!   I could not help, but think and laugh, as I watched the clips of the Tim Geithner hearing before Congress yesterday. 

 In case you haven’t followed the hearing too closely, Geithner is most likely going to be the next “top dog” at the Treasury Department, taking the place of “King Henry” Paulson. This is a position that has never been more important, due to the current economic turmoil we are now facing.   

Well it is no longer Mr. President-elect, and it is Mr. President! Quite a historic day in our nation, but how will President Obama’s economic policies affect you? There will certainly be some changes, but I think it is important that people realize that in the last century we had two presidents recognized as heroes for their economic policies. In addition, it is important to understand that their economic plan for the country was quite different.

Today the Bank of Canada lowered its interest rate to 1% down from 1.5% formerly. It seems that every major central bank around the globe is inching closer and closer to a zero interest rate policy as they try to revive their economies along with the larger, global economy.

It used to be that currencies chased “high yields”. However, as central banks around the world are aggressively cutting rates, will there be such a thing as a major high yielding currency later on this year?

I have prepared all sorts of tax returns for the young and old, affluent and less affluent, middle class and every other class.  I have to say one of the most heavily taxed demographics is the twenty- somethings and those in their early thirties and single. Unfortunately, not enough of them are recognizing it.  I can’t tell you how painful it was when I would see them get hit hard with taxes and not take advantage of a tax sheltered account like a 401k or Traditional IRA.