We begin this week with some positive news from Bloomberg. They report that this month, more Americans believe the economy will improve than at any time in the last decade. Nevertheless, the euro debt crisis remains unresolved. Our next article discusses the eurozone struggle to find a formula to deal with the Greek debt. We then turn to Japan, where Kyle Bass believes we will see the next big financial crisis.  We conclude with an article by Jeremy Grantham, who explains why U.S. GDP growth may be less than the historical average of about 3%.

Americans Are Becoming More Optimistic On The Economy  – According to this article in Bloomberg, the most Americans in a decade said the world’s largest economy will improve.    http://www.bloomberg.com/news/2012-11-21/most-americans-in-decade-project-economy-will-get-better.html

The European Debt Crisis Has Not Gone Away – Eurozone Finance Ministers were unable to agree with International Monetary Fund Managing Director, Christine Lagarde, on a formula to reduce Greek debt.  We include this article as a reminder that the debt crisis in the euro zone is still on-going. http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_21/11/2012_470908

The Next Big Crisis Will Be In Japan – Kyle Bass has been speaking and writing about the problems of Japan for the last couple of years.  He explains why he believes the next big crisis will occur in Japan. http://advisorperspectives.com/newsletters12/Kyle_Bass_on_the_Next_Big_Crisis.php

Expect Lower US GDP Growth Rates – Jeremy Grantham, Chief Investment Strategist for money management firm GMO, explains why he believes US GDP growth rates will be lower than the historical average of about 3% per year. http://advisorperspectives.com/commentaries/gmo_112012.php

We hope you enjoy reading these articles along with us and that you find them informative.  Please forward this to your friends and family.

John R. Day and Bill Ennis


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