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Wire & Cable ASIA – November/December 2010
40
From the
americas
(The average individual credit-card balance [just under
$5,000] is at an eight-year low and delinquencies
have tumbled, according to a late August report by
consumer-credit rater TransUnion.) At least, that is
true of the consuming public that does most of the
buying – those with household income above the
median of $55,000.
Americans now are spending under their demographic
❖
❖
needs. For instance, they need 15.5 million cars a year
as college-age young people graduate to wheels of
their own, but consumers are holding back, buying only
11 million cars annually. At some point, however, auto
sales will “rocket higher.”
But America’s exports, not its consumers, will lead the
❖
❖
way to a healthy economy. Russia and Brazil, among
other emerging markets, can be expected to buy more
US goods such as aircraft, machine tools and computer
equipment. They will also need American services:
accounting, legal, management, and financial advice
– as well as in the fields of architecture, media and
entertainment.
Meanwhile, big business is “strong”, credit is improving
❖
❖
“rapidly”, and political uncertainty over major reforms
is beginning to abate; although Mr Zandi would like to
see Congress and the White House quickly come to a
compromise on what to do with the expiring tax cuts
of the Bush era. His advice: Do not raise anyone’s
taxes in 2011. After that, in 2012, 2013 or 2014,
when the economy is stronger, then raise the rates on
upper-income taxpayers.
Of course, Mr Zandi acknowledged, there could be
some nasty surprises ahead. Presumably these would
hit an optimist harder than the rest of the populace.
But for now, Ms Kiefer of the
Monitor
noted in high
summer, “He’s got his sunglasses ready.”
Dorothy Fabian –
Features Editor
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