While this could be the case, we also caution that this could be the formation of a mini bubble given the amount of money still tied up in the bond markets and most company financials remaining somewhat anemic. Don’t worry you won’t be left behind if you chose not to participate in the market run up, particularly if you are paying any attention to the European bond markets, hence our bubble comment. We urge caution and patience for the remainder of the first quarter. Remember, if we truly are in a recovery period it will be a slow process.

Capital Horizons Consulting provides commercial real estate loan workouts, turnaround, and management consulting services. For additional information and contact information, please see our website Capital Horizons.

The foundation for “I Have Dream” can be found within the opening salvos of the “Declaration of Independence”. “We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights that among these are Life, Liberty and the pursuit of Happiness”. This does in deed mean all PEOPLE of the USA period end of story. Regardless of who you are or where you come from citizens of the USA this means you. Today take the opportunity to reach out to your neighbor. Take the time to say hello or thank you. We are all in this economic mess together and it is the collective us to assist our leaders with a resolution. Remember with Dr. King’s speech, no voice is too small to be heard. Speak up Americans, as what you say today may help solve the problems of tomorrow.

We will resume our activities tomorrow. Have a great day remembering an important man who taught us all to open our eyes to inequality.

Capital Horizons Consulting provides commercial real estate loan workouts, turnaround, and management consulting services. For additional information and contact information, please see our website Capital Horizons.

The other side of the equation indicates that many fears of a double dip recession have been somewhat alleviated due to the stability of the dollar. However, we still are concerned about the international bond market and the uncertainty of the European market. We will have more to come on the bond markets as we move further into the year. Needless to say, any job growth and factory production numbers climbing is a good thing for our economy as millions still struggle with unemployment. This may be the beginning of a lasting recovery and certainly one that we hope lasts for an extended period.

Capital Horizons Consulting provides commercial real estate loan workouts, turnaround, and management consulting services. For additional information and contact information, please see our website Capital Horizons.

Obviously, last night’s Championship game was a must see for the alumni for both institutions and word from a number of ticket brokers is that this was the most widely sought after tickets in recent memory.  Typical ticket prices for this event are around $120 each.  Once the ticket brokers got involved the average ticket price soared to over $2500 each.  Only in America can you have an event that seats approximately 73,000 and millions will watch on TV can ticket prices soar such as these.  While the game was great the amount of money that was spent in and around the game only continues to fuel the flames capitalism.  Yes indeed Capitalism is alive and well!

Capital Horizons Consulting provides commercial real estate loan workouts, turnaround, and management consulting services. For additional information and contact information, please see our website Capital Horizons.

With the amount of bad debt on Bank books and the pending $1.5 Billion in commercial real-estate loans up for renewal in the next four years it’s a forgone conclusion that consolidation is on the horizon.  Look for announcements to begin somewhere near the end of first quarter.  There are a number of Banks that have a target firmly on their backs due to their Texas Ratio and lack of Tier one capital.  These will be at the forefront as they attempt to retain some sort of shareholder value.  The ramifications of not taking action to consolidate could result in not so friendly visit by the FDIC 

Capital Horizons Consulting provides commercial real estate loan workouts, turnaround, and management consulting services. For additional information and contact information, please see our website Capital Horizons.

One of the biggest challenges facing countries that utilize the Euro as their standard currency is their inability to devalue the Euro which they were able to do effectively with their own currencies pre-European Union. When these countries needed extra capital they simply devalued the currency by raising the amount of interest that they paid on bonds. For example, January 2008 the yield for Greek 10 year bonds was 4.40% which indicates a moderate price and also shows a fair amount of stability. Conversely, January 2011 the yield for Greek 10 year bonds is at 12.0% which obviously is great for investors, the problem with this number, particularly for the investor, is that with rates at this level indicates a very strong likelihood of default. Thus, interest payments would not be made if the government defaults.

This scenario is a mini version of what the US could be facing in the years to come. We will pay close attention to this issue and report back if there are any substantial developments.
Capital Horizons Consulting provides commercial real estate loan workouts, turnaround, and management consulting services. For additional information and contact information, please see our website Capital Horizons.

This shot should reverberate through financial markets over the coming weeks as it could possibly be yet another indicator of the international community’s concern over US Dollars stability.  While this may be a trial balloon to see what appetite exists in the market for the yuan currency, it certainly gets the attention of those within the bond market.  With China being the largest foreign holder of US bond debt this could signal a change in their policy and thus create a sell off situation, at some point, of US bond debt.  Should that occur, hold on to your ruby slippers Dorothy as we will be in for one major bumpy ride.  

Capital Horizons Consulting provides commercial real estate loan workouts, turnaround, and management consulting services. For additional information and contact information, please see our website Capital Horizons.

By furthering the quantitative easing ideology the Fed is gambling that European currencies will flock to US Treasury Bonds for stability. While this is not necessarily a bad play it does bring into play the whims of European markets and the possibility for those that hold US debt to begin selling it off for better opportunities. Needless to say, that if US debt holders begin a massive sell off the US market will have far more serious issues to worry about. For many financial insiders this is considered somewhat of a calculated risk, for those that are not well versed in complex financial instruments this looks like a craps table in Vegas and the odds don’t look so good. Look for additional articles regarding inflation / deflation as we move forward through 2011.

Capital Horizons Consulting provides commercial real estate loan workouts, turnaround, and management consulting services. For additional information and contact information, please see our website Capital Horizons.

Here are a few points to ponder:

- AB119 prevents insurance companies from charging different rates for men and women with identical coverage.
o From a consumer perspective good move both financially and politically, however, from an actuarial and risk standpoint probably not as much. Watch for rates to rise across the board and other states legislative bodies will look for the impact.

- SB 782 prevents landlords from evicting tenants who are victims of domestic violence or sexual abuse or stalking.
o While we applaud this action it does create many challenges for a landlord and could potentially create a damaging situation for the property owner. Besides, what happens when the property is foreclosed upon by the lender? This creates a very interesting legal environment.

By no means is California alone in the legislative race to see just how many laws can be enacted during one legislative session, just look at the federal level for how crazy things have become. Bottom line, if our legislative bodies would all take a collective step back to better understand the correlation between legislation that they want to introduce and the unintended financial consequences of said legislation, we would all be better off. Legislative bodies across the country continue to spend more time figuring out how to spend money versus better understanding why their spending and the underlying justification. Frugality is becoming the new normal for a number of households that ran up debt and for those that have chosen to live this way are probably saying I told you so. Now is the time for our legislative bodies to mirror those in the private sector that must adhere to a budget as companies have two choices: Raise Prices or Layoff Employees.

Capital Horizons Consulting provides commercial real estate loan workouts, turnaround, and management consulting services. For additional information and contact information, please see our website  Capital Horizons Consulting.

5. Lending will begin to rebound. Even though bank closures will continue, see #6, many banks have jettisoned bad debt and right sized their portfolios, 2011 sets up to be a solid year for lending. Now if they can just find qualified borrowers?
4. Freddie Mac and Fannie Mae, looks like there is looming legislation that will help these institutions rebound. While we may see some reform, look for these institutions to continue with tightening the reigns on loan qualifications. Unfortunately, those seeking a loan through these institutions will pay the price for those that were unscrupulous.
3. Manufacturing could be the darling of 2011. With the tax legislation behind us and an renewed emphasis on job growth from the administration this sector could drive a tremendous amount of growth.
2. Exports will take a significant step forward during2011. With the dollar reductions against foreign currencies, other countries will be able to purchase more with a lot less. Those in the export business can look for a banner year.
1. Health care, well somebody has to point it out, continues to be a front burner issue for everyone. With the pending lawsuits making their way through the courts and the uncertainty that it brings, positions Health care at number one on our list. This is such a significant issue, look for the courts to begin fast tracking some of these suits in an effort to get it before the Supreme Court by 2012. Legislative bodies across the country will most likely have something to say about this issue as well.  Cost increases within this sector will continue at a rapid pace as health care professionals figure out the rules of engagement and the associated payment reductions that are being pushed through Medicaid and Medicare. 

Regardless of where your interests may fall within our listing, we certainly hope that you have a prosperous and energetic New Year!  Capital Horizons Consulting provides commercial real estate loan workouts, turnaround, and management consulting services.  For additional information and contact information, please see our website Capital Horizons Consulting.