re: #333 Gus 802

The tax positions in the US are clear through the expiration of the extended Obama cuts in 2013. That gives roughly 2 years of guidance on tax positions. Government spending is also roughly known for the ongoing fiscal year and part of next. So I’d put that down as less of a factor on business sitting on the sidelines than other factors.

Uncertainty in the bond markets and the stock market are more of a driver as to why businesses aren’t expanding and/or are sitting on larger cash reserves. Jitters about the overseas stability of countries like Italy and Greece are a factor - and worries that the problems could spread to other markets is a factor.

The real estate market in the US is a major reason businesses aren’t doing well; it’s a key driver to so many different industries that it’s having a ripple effect that will be felt for years to come. Some regions are seeing growth, but it’s anemic on a national level compared to what’s necessary for a stable market (when looking at inventory, new builds, existing home sales, etc.) And in those markets where there is growth and/or demand for new housing, developers are having a tough time obtaining the necessary credit even with all the government intervention in the credit markets to date.