“There’s clearly a buyers strike in the market for state and local government debt that
is largely based on fear and misperception. The mass selling of munis, which represent
the bedrock of the US economy, is incredible.”
– Influential strategist and economist DAVID ROSENBERG

“The aggressiveness of our accommodative policy may soon backfire on us if we
don’t begin to gradually reverse course.”
– Philadelphia Fed President, CHARLES PROSSER, referring to the Federal Reserve’s government bond buying program.

POINTS TO PONDER

1. A few years ago, the US economy was artificially stimulated by hundreds of billions of home
equity withdrawals,

“The most reliable way to anticipate the future is by understanding the past.”
-JOHN NAISBITT, Megatrends Author

Special message: First, Happy New Year to all! Based on our clients’ investment results for 2010, it was certainly a happy old year. We’d be thrilled to see anything approaching those returns in 2011.

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“Indeed, the euro must still be one of the greatest shorts out there—what sort of credibility can the currency possibly have when the Irish banks managed to pass those European stress tests last summer?”

– DAVID ROSENBERG, prominent economic strategist

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POINTS TO PONDER

1.