Sponsored by:

Cost:
$25 for members; $45 for non-members

Location - Peabody Marriott,  8A Centennial Drive, Peabody, Mass.

Directions - Route 128 Exit 28 Forest Street/Centennial Drive

Our Speaker:

Dr. Robert Gough is president and CEO of G-enovation, Inc., a global growth strategies firm that specializes in the design and implementation of Intelligent Decision Systems. Gough is an economist who focuses on macroeconomic forces worldwide, as well as growth strategies for charting and negotiating various macroeconomic environments.

Prior to G-enovation, Inc. Gough was managing director of Lexington Partners, a strategic investment-banking firm, where his primary responsibility was the development and assessment of investment opportunities, including the deal structure and capitalization of many portfolio companies. Gough has provided listeners an early look at the stock market on “Before the Bell” on WBZ News Radio 1030. He is a long-time North Shore resident who lives in Beverly.

Program Description:

Gough believes that while certain aspects of the economy are looking somewhat better, there are clear signals that we are not out of the woods with regard to the problems that led to this economic crisis in the first place. For instance he says:

1. Some fundamental factors have changed:

   1. Housing will never be the robust sector it was for the past 30 years as demographics will dictate

   2. The American consumer is going through the first serious reset in behavior since the austerity days preceding WWII

2. Government stimulus will still be needed for some time as much spending has been shown to be related to what has been subsidized.

3. Despite the talk, little has changed with regard to reining in the excesses and abuses on Wall Street. For example, YRC – a $9 billion trucking company, with 55,000 employees – nearly went out of business recently because a New York based hedge fund held credit default swaps on the company that would be more valuable to the hedge fund if the trucking company went bust than if it survived. If products like credit default swaps are not seriously regulated or eliminated; and other reforms enacted soon to tighten up irresponsible Wall Street practices, the little economic optimism with which we enter 2010 will be short lived.  

4. International capital markets will have more to say about global economic performance in the future than before this crisis. Witness the dollar.

5. All this said the economy is likely to do a bit better in 2010 due to adjustments that have been made. But these are not long lasting fundamental adjustments.