It wasn’t long ago that corporate investment plans were hanging in the air because Washington couldn’t agree on taxes, debt ceilings and budgets. With the economy growing briskly now, unemployment falling, and Congress busy campaigning for reelection, policy uncertainty is way down.
When we’re not working on regional and global forecasts, the MAPI Foundation’s other four full-time economists and I are often delivering presentations at industry events, conferences, and corporate meetings.
Global Economy, Economic Environment, Recession, Money & Finance, Government Finance
Facing insolvency, the Argentine government defaulted on its roughly $130 billion of foreign debt in late 2001 following a four-year economic recession. Once the economy recovered, Argentina offered holders of defaulted bonds new debt instruments via sovereign restructurings in 2005 and 2010. In order to reach elevated acceptance levels, the new bonds were governed mostly under foreign law (some in Europe and some in New York) and included a “rights upon future offers” clause—giving bondholders the possibility to participate in any eventual voluntary restructuring offering better terms. As a result, 93% of the holders of defaulted debt accepted the restructurings. The remaining 7% (the “holdouts”) have been seeking payment in full via legal venues, with some turning to the U.S. courts.
When I wrote about activist shareholders last month, pasta was not foremost on my mind. One investor, however, is making headlines for taking pasta very seriously. And breadsticks, drinking straws, to-go bags, tapas . . .
Yesterday I was interviewed on Manufacturing Talk Radio during a live broadcast. The hosts, Lew Weiss and Tim Grady, asked me about the outlook for manufacturing, and the recording of our discussion is now up on their site.
Recently our team of economists from the MAPI Foundation, the research affiliate of the Manufacturers Alliance for Productivity and Innovation, gathered to discuss the economic and manufacturing outlook for various regions and for the U.S. energy sector.