At current projections, budget deficit in 2015 is estimated to be about $2.3 trillion (or 13.5% of the estimated $17 trillion GDP in 2015), while the U.S. debt is on track to reach $23 trillion. We currently are pointing a finger at Greece and accusing them of irresponsible fiscal policy, yet this deficit level would surpass that of Greece, and is therefore not sensible. The debt level in 2015 would equal 135% of the GDP. Any loss of confidence and associated increase in U.S. interest rates on $23 trillion of debt would truly present a serious risk to the U.S. Budget and the economy.
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According to many financial market commentators, the consequences of a United States default are nothing less than catastrophic. If a default occurs, U.S. will not be able to pay principal plus interest on some maturing debt. In addition, it will not be able to fully meet its payroll obligations. Yet, in spite of all the potential doomsday scenarios, we are within three-weeks of August 2, and the 10-Year benchmark Treasury Note has barely budged. It is actually yielding slightly less today (at about 2.91%) than a month ago (2.95%). Even the 30-year Treasury bonds have hardly moved.
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Richard Parker: is the author of the How To Buy A Good Business At A Great Price© series which is sold in over 80 countries. He is the founder of Diomo Corporation and has personally purchased eleven businesses. Learn more about Richard and his materials at diomo.com (www.diomo.com)
Accurately valuing a small business is often the most challenging part of the process for prospective business buyers. However, it doesn’t have to be an overwhelming or difficult undertaking. Above all, you should realize that valuation is an art, not a science. As a buyer, always keep in mind that the “Asking Price” is NOT the purchase price. Quite often it does not even remotely represent what the business is truly worth.…
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Greece’s politicians have at last realized that a number of the crucial issues facing this debt-ridden nation (such as the privatization of dysfunctional public utilities and the complex negotiations regarding the country’s mammoth financial woes) cannot possibly be solved without some assistance from private sector technocrats.
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Evaluation of the business deal is an on-going process that begins the moment you obtain a lead from a broker and continues through closing of the deal. Think of the evaluation process as a filtering of your flow of leads through successive screens, as you obtain more information about each lead, until you have narrowed your leads down to one final choice.
Based on actions you take, there are typically five discrete stages of information acquisition that will help you in narrowing down your leads. As you obtain more information, you are able to filter or screen out those leads that are less likely to meet your criteria and to provide you with the results you desire. These stages or filters, are as follows:…
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