Peter Diamond, who won the 2010 Nobel prize in economics but ultimately abandoned a bid to serve on the Federal Reserve, talks with WSJ's Kelly Evans about why he supports "Operation Twist," and why more fiscal stimulus is need to fix the U.S. jobs problem.
http://http://online.wsj.com/video/diamond-we-need-stimulus-now/B5170210-C45C-486A-85F3-D3F7BCF527EE.html
Wednesday, September 28, 2011
Tuesday, September 27, 2011
Survey: US Capital-Equipment Financing Strengthened In August
Equipment Leasing and Finance Association survey shows rising loan and leasing activity for capital equipment
--Choppy month-to-month activity attributed to concerns about U.S. economy
--Delinquent loans and leases down from a year ago
Financing volume for business equipment grew 33% in August from a year earlier, easing concerns, at least temporarily, that spending on capital equipment is weakening.
Respondents to the Equipment Leasing and Finance Association's monthly survey said they financed $5.7 billion of new equipment last month, compared with $4.3 billion in the year-earlier period. August's volume was flat with July. From January through August, survey respondents provided financing for $43.9 billion of equipment purchases, up 25% from the same period in 2010.
The recovery in the $521-billion-a-year commercial leasing and financing industry from its 2009 doldrums appeared to regain some momentum last month after activity plunged in July following a spike in June. The finance association attributed the recent choppiness to increasing uncertainty about the performance of the U.S. economy.
"It is clear from less-quantitative reporting that equipment-finance executives still believe the storm clouds hovering over our economy have not yet dissipated," said William Sutton, president of the Washington-based association. "Current and future business performance will continue to ebb and flow."
Nevertheless, credit-quality metrics measured in the survey showed across-the-board improvement last month. Credit standards eased in August as the approval rate for loans and leases rose to 77.6% in August from 76.3% in July. Of the companies participating in the survey, more than 60% reported that they submitted more transactions for approval during August, up from 59% in July.
Loans and leases past due by more than 30 days amounted to 2.5% of survey respondents' net receivables in August, down from 4.3% a year earlier and down from 2.7% in July. Loan charge-offs amounted to 0.6% of respondents' net receivables last month, down from 1.3% in August 2010 and down from 0.7% in July.
Survey respondents continued to cite construction, trucking and printing as the industry sectors within their loan portfolios that are underperforming.
The 25 respondents to the Washington association's survey included banks Wells Fargo & Co. (WFC), Bank of America Corp. (BAC) and Fifth Third Bancorp (FITB); independent financing companies including CIT Group Inc. (CIT); and finance units for manufacturers Caterpillar Inc. (CAT), Deere & Co. (DE), Volvo Group, and Dell Inc. (DELL)
Friday, September 23, 2011
Mazuma Capital Funds Hires David M. Eckman as Vice President of Vendor Services
FOR IMMEDIATE RELEASE-
DRAPER, UTAH SEPTEMBER 23, 2011–Mazuma Capital Corp announced that David M. Eckman has joined Mazuma Capital as the Vice President, of Vendor Services. The Vendor Services division will provide turnkey financing services to vendors, manufacturers and distributors seeking $100,000- $20,000,000.
David brings phenomenal expertise to Mazuma Captial through his extensive background in diversified management and finance. Prior to joining Mazuma David worked with several financial institutions including Orix Credit Alliance, where he maintained the integrity of transaction fundings and regulatory processes. David holds a B.S. Business Administration / Finance degree from, Oregon State University.
Mazuma Capital CEO Jared Belnap said, “We are excited about adding David to head up our Vendor Services division. This division will provide a wide range of customized programs, turnkey solutions, and outstanding service. David has a strong customer base and process history of developing these programs into successful ventures from his years at Orix and we’re thrilled to see him parlay this expertise into meaningful production, adding to Mazuma’s strong brand and market presence.”
“I am very excited to join the Mazuma Capital team, and look forward to the continued growth and success of the Vendor Program. Mazuma has the knowledge, expertise, and resources to position itself strategically into a formidable competitor in Vendor Origination and I’m thrilled to be at the helm in this endeavor. I look forward to building on Mazuma’s already impeccable reputation as a dependable funding source with the highest level of hands on service.” Said David M. Eckman, VP of Vendor Services.
About Mazuma: Mazuma Capital is committed to our client’s success. Our unique capabilities and innovative product offerings provide solutions accelerating financial growth. Servicing both rising companies and established businesses, Mazuma continues to secure its position as the middle-market industry leader. We build long-term relationships by delivering on our commitments. Mazuma co-authored the Utah Best Practices Alliance and subscribes to the ELFA Code of Fair Business Practices.
# # #
Media Contact: Julie Fuchs, 801-816-0800 Ext. X291, jfuchs@mazumacapital.com
Thursday, September 22, 2011
FASB’s Leasing Convergence Timeline Moves to Next Year
Accounting Today reported that in an interview with staff members, FASB board chairman Leslie Seidman said many of the priority projects slated for convergence with the IASB probably won’t be settled until next year at the earliest.
Commenting on the completion of FASB’s re-deliberation discussions with the IASB on the leasing project, Accounting Today quotes Seidman as saying, “We are continuing to work through the issues that were raised with the exposure draft.” Seidman added, “We have already decided to re-expose that as well, which again was an extremely well-received decision because people do want an opportunity to look at the revised conclusions in the context of the standard as a whole.”
Once those discussions conclude late this fall, Seidman said the leasing proposals would be re-exposed for 120 days with the IASB. “Likewise, we’re looking at a timeframe of sometime next spring to start the re-deliberations on leasing, depending on the feedback that we get, and we’re looking at re-deliberations after that, with a goal of trying to conclude leasing in 2012,” Seidman is quoted as saying by Accounting Today.
Read entire article:
Thursday, September 15, 2011
2013- The Tax Cliff
President Obama unveiled part two of his American Jobs Act on Monday, and it turns out to be another permanent increase in taxes to pay for more spending and another temporary tax cut. No surprise there. What might surprise Americans, however, is how the President is setting up the U.S. economy for one of the biggest tax increases in history in 2013.
Mr. Obama said last week that he wants $240 billion in new tax incentives for workers and small business, but the catch is that all of these tax breaks would expire at the end of next year. To pay for all this, White House budget director Jack Lew also proposed $467 billion in new taxes that would begin a mere 16 months from now. The tax list includes limiting deductions for those earning more than $200,000 ($250,000 for couples), limiting tax breaks for oil and gas companies, and a tax increase on carried interest earned by private equity firms. These tax increases would not be temporary.
What this means is that millions of small-business owners had better enjoy the next 16 months, because come January 2013 they are going to get hit with a giant tax bill. Let's call the expensive roll:
• First comes the new tax hikes that Mr. Obama proposed on Monday. Capping itemized deductions and exemptions for the rich would take $405 billion from the private economy for 10 years starting in 2013. Taxing carried interest would raise $18 billion, and repealing tax incentives for oil and gas production would get $41 billion.
• These increases would coincide with the expiration of the tax credits, 100% expensing provisions and payroll tax breaks in Mr. Obama's new jobs program. This would mean a tax hit of $240 billion on small business and workers. That's the downside of temporary tax breaks and other job-creation gimmicks: The incentives quickly vanish, and perhaps so do the jobs.
So even if the White House is right that its latest stimulus plan will create "millions of jobs" through 2012, by this logic a $240 billion tax hike on small businesses in 2013 would cost the economy jobs. This tax wallop would arrive when even the White House says the unemployment rate will still be 7.4%.
• January 2013 is also the same month that Mr. Obama wants the
Bush-era tax rates to expire on Americans earning more than $200,000. That would raise the highest individual income tax rate to about 42%, including deduction phaseouts, from 35% today. Congress's Joint Committee on Taxation found in 2009 that $437 billion of business income would be taxed at higher tax rates under the Obama plan. And since some 4.5 million small-business owners file their annual tax returns as subchapter S firms under the individual tax code, this tax increase would often apply to the same people who Mr. Obama is targeting with his new tax credits.
The capital gains and dividend taxes would also rise to an expected 20% rate from 15% today. The 10-year hit to the private economy for all of these expiring Bush rates: about $750 billion.
• Also starting in 2013 are two of ObamaCare's biggest tax increases: an additional 0.9-percentage point levy on top of the 2.9% Medicare tax for those earning more than $200,000, and a new 2.9% surcharge on investment income, including interest income. This will further increase the top tax rate on capital gains and dividends to 23.8%, for a roughly 60% increase in investment taxes in one year.
The White House's economic logic seems to be that its new spending and temporary tax cuts will so fire up investment and hiring in the next 16 months that the economy will be growing much faster in 2013 and could thus absorb a leap off the tax cliff. But this requires its own leap of faith.
The White House also predicted a similar economic takeoff from the 2009 stimulus that was supposed to make a tax hike possible in 2011. Then last December Mr. Obama proposed new tax incentives only for 2011 because the economy was supposed to be cooking by 2012. Now it wants to extend those tax breaks so the economy will be cruising in 2013.
All of this assumes that American business owners aren't smart enough to look beyond the next few months. They can surely see the new burdens they'll face in 2013, and they aren't about to load up on new employees or take new large risks if they aren't sure what their costs will be in 16 months. They can also reasonably wonder whether Mr. Obama's tax hike will hurt the overall economy in 2013—another reason to be cautious now.
For the White House, the policy calendar is dictated above all by the political necessities of the 2012 election. Mr. Obama will take his chances on 2013 if he can cajole the private economy to create enough new jobs over the next year to win re-election, even if those jobs and growth are temporary. Business owners and workers who would prefer to prosper beyond Election Day aren't likely to share Mr. Obama's enthusiasm once they see the great tax cliff approaching. Look out below.
Source: WSJ
Wednesday, September 14, 2011
Now Through December 31st 4.9% Financing Available for Qualified Customers.
Now Through December 31st 4.9% Financing Available for Qualified Customers.
Mazuma Capital has allocated $25M in funds to offer qualified customers 4.9% financing available through the end of Q4!
Flexible Lease Options Available $250K- $20M. We work with vendors and brokers as well. Contact us today for a bid on your next capital project 801-816-0800.
Tuesday, September 13, 2011
President Calls for Expensing for Plants and Equipment for 2012 as Component of Jobs Package
President Calls for Expensing for Plants and Equipment for 2012 as Component of Jobs Package
On September 8, President Obama unveiled a proposal calling for a 100% tax deduction for plants and equipment for 2012 as a key component of the Administration’s new $447 billion American Jobs Act. The proposal calls for a full deduction of qualified capital investments through December 31, 2012 and allows all firms-large and small-to take an immediate deduction on investment in new plants and equipment.
Under current law, business are generally allowed to immediately deduct 100% of the cost of qualified property placed in service in 2011, and take 50% "bonus depreciation" on the cost of property placed in service in 2012. The President's proposal would extend the 100% expensing provision through the end of 2012. For the 100% expensing provision, this proposal also extends the longer placed in service date for property placed in service before January 1, 2014 for certain longer-lived and transportation property. The 50% bonus depreciation provision is not changed, but would be subsumed by the 100% expensing proposal in 2012. The expensing proposal is estimated to cost $5 billion over a ten year budget window.
On September 12, the President announced his recommendations to pay for his jobs plan including proposals to: tax "carried interest" in investment partnerships as ordinary income, repeal certain oil and gas provisions, limit certain individual itemized deductions and exclusions to a 28% tax rate, and lengthen the depreciation schedule for general or corporate aircraft to seven years.
Notably, the President recommended that new bicameral, 12-member congressional Joint Select Committee on the Deficit (the “Supercommittee”), be charged with finding the necessary revenue to pay for this plan as well as finding an additional $1.5 trillion in deficit reduction cuts over the next ten years (2012-2021).
Monday, September 12, 2011
Subscribe to:
Posts (Atom)