Quasha Calls for Less Spending–More Investing

In an article that appeared in “The Daily Beast”, Alan Quasha, CEO of Quadrant Management, rhetorically asked whether we can “stimulate the economy short and long term in a way that ends the financial meltdown but does not mortgage the future of our children and grandchildren?”

His answer is an unequivocal “yes”, but it can only be accomplished through more investment and a reduction in consumption. This approach suggests that investments will stimulate job creation, but consumption will “sap our already depleted wealth.”

Since Quasha believes that a “new plan needs a new vocablulary”, Alan Quasha would like to refrain from referring to a “bailout” of banks, but rather a “reengineering” of America.

He would like to see an end to propping up values and the bad habit of “throwing good money after bad businesses.” Quasha believes we should begin to think outside “the Beltway box.”

Alan Quasha On Saving Our Economy

Discussing the current financial crisis, Alan Quasha, in an article which appeared in “The Daily Beast” offers several concrete suggestions for an economic recovery which will not “mortgage our grandchildren’s future.”
Opening his article with a quote from Winston Churchill, “Americans can be trusted to do the right thing, but only after they had exhausted all the other alternatives”, Quasha continues with a description of the seriousness of our deepening recession.
“America is frighteningly overleveraged, saddled with $54 trillion of debt, or 360 percent of our $15 trillion economy. Americans’ pre-2008 $56 trillion of net worth has dropped $20 trillion in the last six months alone—the greatest loss of wealth in the shortest time in history.”
Quasha also suggests that recent actions taken by the new U.S. administration seem to be heading down the wrong course, as suggested by the financial markets.

Eric Beder of Carret Advising on YouTube Video

Eric Beder, co-chairman with Alan Quasha of Brean Murray, Carret & Co, was interviewed on the April 27th edition of Closing Bell with Howard Davidowitz. Maria Bartiromo is seeking advice for her viewers about how investors can make sound investment decisions during turbulent economic times.  Lack of consumer confidence is seen as a temporary but significant concern.

Listen to the video below: