July 2008 - The Room

This insightful blog provides a unique perspective on the world that you just won't find anywhere else. The Room is an eclectic mix of geopolitical and market commentary with a personal story thrown in here and there. Never willing to take any subject too seriously, David Galland delivers a "great read" that informs and entertains.

  • Where Is the Economy Going in the Next Six Months?

    As investors, the question we have to focus most of our attention on just now is what impact the credit crisis, the bursting housing bubble and the actions of the U.S. government will have on the economy and investment markets in the next six months. We have seen the Fed and the federal government move to panic mode as they try to keep the system afloat. As expected, they have cut rates, as well as having given away checks and rearranged the Federal Reserve's entire balance sheet. The underlying problems have not been fixed with this massive bailout. There are still many credit pot holes out there and new lending remains highly constrained. Even the government tax rebate checks, rather than boosting the domestic economy, were largely absorbed by higher oil prices. The resulting cut-back in consumer spending, coupled with ongoing constrictions in lending, will cause a severe slowing of the economy....