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Sept 2012 final
The document provides an economic update for the 7 Rivers region including: 1) Charts showing GDP growth in the US and Europe since 2008, with the US seeing a decline before recovering while southern European countries like Spain and Italy saw continued declines. 2) Data on interest rates on government bonds in European countries from 1990 to 2010, with rates in Spain and Italy rising significantly during the Euro crisis. 3) A chart comparing federal spending per dollar of taxes collected by different US states, with some southern states receiving more spending than taxes collected. 4) Information is presented but no clear consensus is reached on the challenges businesses face in accessing capital and the roles that various stakeholders can play in improving access to capital
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Sept 2012 final
- 1. Economic Indicators: An Updatefor the 7 Rivers Region
- 2. Poll: What isthe biggest immediate threat to ...
- 3. Economic Indicators: An Updatefor the 7 Rivers Region
- 4. Non-Standard Disclaimer: I’ve beensent by the Obama campaign to tell you that you are better off now than you were 4 years ago. I’ve been sent by the Romney campaign to tell you that you are worse off now than you were 4 years ago.
- 5. 2% Change in GDP since Q1 2008 US 0% -2% -4% -6% -8% 2008Q1 2010Q1 2012Q1
- 6. 2% Change in GDP since Q1 2008 US Germany 0% France -2% -4% Spain -6% Italy -8% 2008Q1 2010Q1 2012Q1
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- 8. 16 Interest Rates on Gov’t Bonds 12 8 Spain Italy 4 France Germany 0 1/1/1990 1/1/1994 1/1/1998 1/1/2002 1/1/2006 1/1/2010
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- 10. $0.50 $1.00 $1.50 $2.00 $2.50 New Mexico Mississippi Alaska Louisiana West Virginia North Dakota Alabama South Dakota Kentucky Virginia Montana Hawaii Maine Arkansas Oklahoma South Carolina Missouri Maryland Tennessee Idaho Arizona Kansas Wyoming Iowa Nebraska Vermont North Carolina Pennsylvania Utah Indiana Federal Spending in Ohio Georgia Rhode Island Florida State per Dollar of Texas Oregon Michigan Washington Federal Taxes Wisconsin Massachusetts Colorado New York Collected from State California Delaware Illinois Minnesota New Hampshire Connecticut Nevada New Jersey
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- 14. Table 1. TaxRelief from a One-Year Extension of Bush Tax Cuts and AMT Patch Extension with Extension without AMT Patch AMT Patch As a Share Per Tax As a Share Per Tax of Income Return of Income Return Iowa 3.65% $1,882 2.27% $1,167 Minnesota 4.76% $2,833 2.48% $1,474 Wisconsin 4.19% $2,196 2.33% $1,224
- 16. $23 GDP versus Potential Trillions $20 $18 $15 $13 $10 $8 $5 Source: U.S. Congress: Congressional Budget Office/U.S. Department of Commerce: Bureau of Economic Analysis/FRED
- 17. Unemployed and Underemployed 30 Millions 25 20 Marginally 15 10 Involuntary 5 Unemployed 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
- 18. 120 Employment Growth By Sector 115 110 Healthcare 105 Federal 100 State/local 95 Finance 90 Manufacturing 85 80 75 Construction 70 Jan-08 Sep-08 May-09 Jan-10 Sep-10 May-11 Jan-12
- 19. Total job changefor public-sector workers since the start of recoveries Share of total jobs, start of recovery= 100% 106% 1981 recession 103% 1990 recession 2001 recession 100% 2007 recession 97% -18 -14 -10 -6 -2 2 6 10 14 18 22 26 30 34 Length of recession (months) Months since recession's end
- 20. $3.5 Trillions Federal Reserve Balance Sheet $3.0 Mortgage $2.5 Backed Securities $2.0 Lending $1.5 Long Term $1.0 Treasuries $0.5 Traditional Securities $0.0 1/3/2007 1/3/2008 1/3/2009 1/3/2010 1/3/2011 1/3/2012
- 21. $23 GDP versus Potential Trillions $20 $18 $15 $13 $10 $8 $5 Source: U.S. Congress: Congressional Budget Office/U.S. Department of Commerce: Bureau of Economic Analysis/FRED
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- 26. Poll: What isthe largest source of business i...
- 27. 80% Internally Financed
- 28. 0 10 20 30 40 50 Bank Loans Bonds Non-Bank Loans Stocks US Sources of External Finance 2000
- 29. 0 25 50 75 100 Bonds Bank Loans Non-Bank Loans US Stocks Germany Japan Sources of External Finance 2004
- 31. Eight Basic Facts 1. Stocks are not the most important sources of external financing for businesses 2. Issuing marketable debt and equity securities is not the primary way in which businesses finance their operations 3. Indirect finance is many times more important than direct finance 4. Financial intermediaries are the most important source of external funds
- 32. Eight Basic Facts(cont’d) 5. The financial system is among the most heavily regulated sectors of the economy 6. Only large, well-established corporations have easy access to securities markets to finance their activities 7. Collateral is a prevalent feature of debt contracts 8. Debt contracts are extremely complicated legal documents that place substantial restrictive covenants on borrowers
- 33. Not everything shouldbe funded
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- 37. Market Failure? Informational Asymmetries? Non competitive market? Principal-Agent Problems? Externalities? Public Goods?
- 38. Expanding Access toCapital Akin to Expanding Home Ownership Marginal Investments Informational Asymmetries
- 42.
- 44. Launched Projects: 27,086 Successful Projects: 11,836 Dollars Pledged: $99,344,382 Rewards Selected: 1,150,461 Total Visitors: 30,590,342 Project Success Rate: 46%
- 45. $0 $10,000 $20,000 $30,000 $40,000 Fashion Art Games Theater Technology Publishing Comics Music Photography Food Film&Video Dance Design Funding Per Project
- 46. 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% Film&Video Music Design Art Publishing Technology Theater Games Food Photography Comics Fashion Dance 100 Million in funding by Category
- 48. 0 10 20 30 40 50 Our Accountant Our Bank Small Business Development Center Chamber of Commerce County Economic Development Staff Other Turn to for financial advice...
- 49. 1 2 3 4 5 availability in the region of capital from banks availability in the region of angel investors The financial programs/incentives offered by local or county government The financial programs/incentives offered by your state government 1 - Poor to 5 - Excellent for your Business
- 50. Panelists GREG FLOGSTAD Mississippi River Regional Planning Commission (MRRPC) COLIN FLEMING State Bank Financial STEVE TIPPINS UW-L Department of Finance
- 51. Question: Please share some of the challenges and successes you and your organizations have faced assisting people trying to access capital.
- 52. Question: When unable to access capital, which factor is typically cited as limiting a business from accessing capital?
- 53. Questions What is the most important action we could take in the region in the next six months that would have the greatest impact on improving access to capital in the region?
- 54. Questions What role – if any – can the government play in increasing access to capital?
- 55. Poll: What canwe do in the 7 Rivers Region to...
- 56.
Editor's Notes
- #3 Poll: What is the biggest immediate threat to ...\r\n\r\nPress F5 or enter presentation mode to view the poll\r\nIn an emergency during your presentation, if the poll isn't showing, navigate to this link in your web browser:\r\nhttp://www.polleverywhere.com/multiple_choice_polls/MTY4NjQwMzAzOAIf you like, you can use this slide as a template for your own voting slides. You might use a slide like this if you feel your audience would benefit from the picture showing a text message on a phone.
- #8 Explain the challenges in Europe.http://www.flickr.com/photos/mammal/3455272493/sizes/l/
- #10 Explain the challenges in Europe.http://www.flickr.com/photos/mammal/3455272493/sizes/l/
- #13 Explain the challenges in Europe.http://www.flickr.com/photos/mammal/3455272493/sizes/l/
- #14 http://www.flickr.com/photos/border0/5574007369/sizes/o/in/photostream/
- #15 A regional MPC of 60% says local consumption falls by 1,200 per return!
- #18 Marginally attached workers are persons who currently are neither working nor looking for work but indicate that they want and are available for a job and have looked for work sometime in the recent past. Discouraged workers, a subset of the marginally attached, have given a job-market related reason for not looking currently for a job. Persons employed part time for economic reasons are those who want and are available for full-time work but have had to settle for a part-time schedule.
- #20 Notes: Public data exclude temporary Census workers. The line for each recession begins at the official start of the recession, so the length of the line to the left of zero indicates the length of each recession.Source: EPI -Authors' analysis of Bureau of Labor Statistics' Current Employment Statistics public data series
- #21 http://www.clevelandfed.org/research/data/credit_easing/index.cfmQE3 will be hard. The govt is the only bond buyer.
- #24 http://www.nytimes.com/interactive/2012/07/20/us/drought-footprint.html
- #25 Discuss local impacts. Increased feed prices and that means food prices and fuel. But it is small relatively speaking. The USDA estimates that the consumer price index for “All Food” (both food at home and food away from home) will rise by 2.5% to 3.5% in 2012 and 3.0% to 4.0% in 2013Corn production in the U.S., the world’s largest grower and exporter, will drop 13 percent to a six-year low after the worst drought in more than 50 years damaged Midwest fields, the government said. Analysts were expecting an even bigger decline
- #27 Poll: What is the largest source of business i...\r\n\r\nPress F5 or enter presentation mode to view the poll\r\nIn an emergency during your presentation, if the poll isn't showing, navigate to this link in your web browser:\r\nhttp://www.polleverywhere.com/multiple_choice_polls/LTE5OTA3MTYzNTEIf you like, you can use this slide as a template for your own voting slides. You might use a slide like this if you feel your audience would benefit from the picture showing a text message on a phone.
- #30 Shadow banking sector.
- #35 http://www.businesspundit.com/25-internet-startups-that-bombed-miserably/2/http://www.growthink.com/content/10-famous-product-failures-and-advertisements-did-not-sell-themWe dpnt know of many failures because we don’t see them.
- #56 Poll: What can we do in the 7 Rivers Region to...\r\n\r\nPress F5 or enter presentation mode to view the poll\r\nIn an emergency during your presentation, if the poll isn't showing, navigate to this link in your web browser:\r\nhttp://www.polleverywhere.com/free_text_polls/MjU5MTA4MTI1If you like, you can use this slide as a template for your own voting slides. You might use a slide like this if you feel your audience would benefit from the picture showing a text message on a phone.