BankNotes

2019 June BankNotes

One Of the most common questions we get from the public is whether IBC “works” or “makes sense” for someone who is older and/or in relatively poor health. People naturally worry whether the “pure cost of life insurance”— which is more expensive for older and/or sicker individuals, of course— at some point could make IBC impractical. If so, would it be better for people in this situation to take out IBC policies on others who are younger and/or in better health?

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2019 May BankNotes

A Business Credit survey1 conducted and published in March 2016 by the Federal Reserve Banks of New York, Atlanta, Boston, Cleveland, Philadelphia, Richmond, and St. Louis reports that “cash flow” is the number one problem facing small businesses with fewer than 500 employees. At the same time a Financial Stability Report dated November 2018 by the Board of Governors of the Federal Reserve cites that business-sector debt relative to GDP is historically high and “debt has been growing fastest at firms with weaker earnings and higher leverage.”2 In essence this report insinuates that the very same cash flow difficulty also exists among the larger companies, that is, those businesses with more than 500 employees.

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2019 March BankNotes

A Closer Look At Businesses Part I: By L. Carlos Lara
[Reprinted from the November 2018 edition of the Lara-Murphy-Report, LMR]
According To The Kauffman Index of Startup Activity1 the share of new entrepreneurs who started businesses to pursue opportunity rather than from necessity is now up more than 12 percentage points higher than in 2009 at the height of the Great Recession. This of course is a very encouraging nationwide trend and I extend my admiration to all those individuals who have ventured out into an endeavor where only about half survives the first five years in operation. Obviously, by any measure, these are certainly not great odds so I also applaud their courage and their desire to start their very own enterprise.

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2019 February BankNotes

George Washington’s State of the Union Address Holds Lessons for the 21st Century: by Lawrence W.Reed
It was a time when government knew its limits and its proper place, and the people did too.
A few million people will be watching when President Trump delivers his State of the Union Address to a joint session of Congress on January 29. I doubt I’ll be one of them. The last State of the Union I watched from start to finish was literally 30 years ago, and I don’t feel the least bit deprived— intellectually, spiritually, or otherwise.

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