Dr. Ernie Goss follows the economic conditions. Dr. Goss has always felt that the economy in Nebraska has flourished during these rough times because the agricultural sector has stayed strong over the past few years. This months report is not good news. The numbers do not suggest a recession but the numbers have deteriorated from earlier this year.
I read this article posted by Dr. Ernie Goss on Twitter and Facebook that touches on his report, ” Survey suggests slow growth in Midwest, Plains”
Dr. Goss conducts a monthly survey with bankers in rural parts of Colorado, Illinois, Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, South Dakota and Wyoming.
The Agriculture index remains strong?:
- Farmland price index increased to 66.9 in September from 61.9 in August
- Farm Equipment sales index jumped to 65.4 from 56.9 in August
Other indexes do not show the same story.
- The Home Sales index dipped to 48.5 in September from 49.3 in August
- The Retail sales index fell to 47.1 in September from 47.3 in August
Check out this video and hear what businesses are saying about the current economy. This is the message we should be hearing from our politicians. It really is good information that ties-in an economic perspective with business perspectives.
Ernie’s guests offer some comparisons to the 1990’s . Energy prices will continue to rise and this will have a direct impact on the economy.
Here are some of the actions these individuals are taking.
- Ernie is investing in foreclosed properties at this time.
- Tony is investing in Alternative Energy, Agriculture and Information Technology
- Tim is investing in commercial properties by contacting the distressed sellers. Owners don’t want to take on additional work.
Some overall themes presented were:
- Cash is king!
- People should be buying in this current economy.
- IT is really doing well across the country for project work not employment type of work.
What are you watching for in the next moth?
- Tim is watching P/E closely. Projected profits in 2011 should be higher than 2010.
- Tony is watching job reports and inflation. October 7, 2011 is the next job report.
- Ernie – Greece could withdraw from the Euro and be able to pay off debts.
Some other highlights from this discussion
ADP Payroll Company – Watch these numbers? The numbers could be different than those coming from the government. ADP performs payroll services for smaller companies.
Everyting is so temporary right now. There doesn’t seem to be any permanency in policy that is occurring at this time.
The Federal Reserve
Project Twist – Extending maturities on the assets they own. Keep rates low.
Be aware of the Federal Reserve Report on September 20-21, 2011.
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