Richard Walker Gebo
A private research group has released a report on Tuesday that reflects boosting confidence in Americans about the U.S. economy.
Report revealed consumers’ confidence surged in February to its highest level in a year. It happened because of increasing job prospects and decreasing unemployment at a three-year low.
The increasing confidence in consumers has given a confidence to Wall Street to reclaim its lost ground. The Dow Jones industrial average ended over 13,000 on Tuesday for the first time since May 19, 2008, which clearly indicates how confident U.S investors are. This gain would encourage hesitating investors to back into the market to help market to recover and gain.
Amna Asaf, economist at Capital Economics, stated the economy is getting momentum and clearly shoppers are more optimistic about their job prospects.
Report is a matter of happiness for present President Obama who seeks re-election, says Richard Walker Gebo.
Besides consumer confidence is still low than the level of a healthy economy and rising gas prices, probability of war with Iran on nuclear showdown, and European debt crisis are the issues which may shudder to the confidence of Americans again from the hopes which are generating in them. Nonetheless, Tuesday’s performance indicates a stable economy.
Eventually, it should be expected that negative factors should not succeed in again creating fear in the minds of American investors, who have somehow become confident to put their money in the market, so that economy bringing back on the track should continue perform should again help the U.S. to become the strongest economy in the world.
By Richard Walker, Gebo Equity Management Pty Ltd
The Federal Reserve has declared to hand over $76.9 billion of its earnings to the U.S. treasury department.
The earning sources of the Fed are interest obtained from its massive holdings in treasury debt, mortgage-backed securities from Fannie Mae and Freddie Mac, government debt securities, earnings of several billion dollars from the sale of treasury securities, and $152 million from foreign-currency trades.
The Federal Reserve has increased its earnings in recent years. Since 2008, its income is going up year by year. But this year its income has lowered a bit, as in 2010, it transferred $79.3 billion to the treasury department while in 2011; it went a bit down as the Fed would transfer $76.9 billion, stats Richard Walker, Gebo Equity Management Pty Ltd.
The Federal Reserve pulls its operation costs from its earnings and rest amount it submits to the treasury department. The Fed had set aside $3.4 billion for its expenses in 2011 and distributed $282 million to fund the Consumer Financial Protection Bureau and the Office of Financial Research, shares Richard Walker from Gebo Equity Management.
The Federal Reserve is doing quite good earnings for last many years. But this year its earnings have downed by $ 2.4 million though it is good, as per the view of economic analysts.
Richard Walker is the owner of Gebo Equity Management Pty Ltd., a boutique Corporate Advisory firm specialized in Corporate Advisory, Corporate Finance and Investor Relations. Mr. Richard Walker also holds the position of Director of 2 Up Gaming Plc and Chairmanship of Millhouse Inc. Plc and Streamark Limited. Mr. Richard Walker has specialization in listing companies on foreign stock exchanges.