USA Wealth Management LLC

Are Keynesian Economics the New Norm

Noted financial advisor Dennis Tubbergen feels recent government actions put Keynesian economists' feet to the fire.

 

Grand Rapids, MI -- (SBWIRE) -- 07/22/2010 -- While consumers have begun the deleveraging process and are cutting back on their debt, many governments around the world (including the United States) are trying to keep their respective economies heading in the right direction by pumping money into their respective systems.

This economic philosophy, known as Keynesian Economics, has governments actively intervening in markets in an effort to ensure a country’s economic stability. Noted financial advisor Dennis Tubbergen sees the recent government actions as “putting Keynesian economists’ feet to the proverbial fire.”

Tubbergen, who is CEO of USA Wealth Management LLC, a federally registered investment advisory company, notes that while private sector debt still remains high, the exorbitant levels of public debt may be the catalyst that drives both stock and bond markets lower.

“It should come as no surprise that worldwide debt levels are a huge threat to economic recovery,” explains Tubbergen. “Given the current state of the global economy, odds favor a prolonged decline over time.”

Tubbergen adds that while markets rarely go straight up or straight down, the current decline may have some encouraging rallies.

“Difficult decisions will have to be made by the U.S. government to significantly change the direction of our economy,” concludes Tubbergen. “It goes without saying: the financial health of a government can be used as a gauge to assess the financial health of its citizens.”

For more information on Dennis Tubbergen’s views, visit http://www.dennistubbergen.com.

The opinions expressed herein are those of the writer and not necessarily those of USA Wealth Management, LLC. This update may contain forward-looking statements, including, but not limited to, statements as to future events that involve various risks and uncertainties. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause actual events or results to differ materially from those that were forecasted. Therefore, the information contained herein is not intended to constitute investment advice and should not be interpreted as a recommendation to buy, sell or hold a particular investment. Prior to making any investment decision, the services of an appropriate professional should be sought.