8/14/2019 Economic Insights From Financial Leaders By Adam Miller

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Expert Opinions on the Economic CrisisBy Adam Miller 

Financial Planner and Candidate for CFP® Certification

Las Vegas, a city known around the world for the catchphrase, “What Happens in Vegas Stays in Vegas,” washe recent home of the 2008 TD Ameritrade Connect

Conference for financial advisors. Many experts sharedheir opinions and insights into the difficulties and

opportunities our country may face in the coming years.Here are a few of the insightful words and ideas thathappened in Vegas, but should not “Stay in Vegas.”

T. Boone Pickens, founder and Chairman of BP CapitalManagement, presented to nearly 1500 industryprofessionals. Pickens shared at the conference thehanges in the natural gas drilling process and how newechnology has allowed for much more natural gas to bextracted from each location than in the past. This hasreated a tremendous supply of natural gas. His plan,

which can be seen at www.pickensplan.com woulddrastically reduce our dependence on foreign oil.Pickens mentioned that U.S. citizens make up 4% of theworlds population while using 25% of the world’s oil.He also shared that in 1980 the U.S. imported 28% of he oil we used, today we import 70%. Pickens statedhat “the Pickens Plan is for America and for

generations to come.” He said that future generationsneed not be concerned about rising healthcare andailing education, “they won’t have any money left topend on education and health care. They’ll bepending it all on foreign oil.” The Pickens plan wouldreate more jobs in alternative energy such as wind

power and solar, and would build upon the currentnatural gas infrastructure here in the U.S.

After Mr. Pickens’ presentation, I was able to discusswith him how the natural gas industry had changed theace of Colorado’s Western Slope and how theconomy here has not been as affected as the rest of the

U.S. He said that was the goal of his plan and hementioned in regards to President Barack Obama, “Hemay be the right guy.” Mr. Pickens was optimistic

bout the possibility of reducing our need for foreignoil under the country’s current leadership.

Dr. William Poole, Former president of the FederalReserve Bank of St. Louis, spoke to participants abouthis concerns regarding the federal bailouts. Hediscussed how bailouts of huge companies could lead tomore and more government bailouts. This wouldventually change how investors valued companies;hey would count on the possibility of governmentntervention. “Bailouts beget bailouts. We cannot bail

out all firms,” Dr. Poole explained. “Firms have to fas a part of capitalism.” Poole suggests that the currefinancial stimulus package is “devoid of budgetarydiscipline.” The government is currently spendingmoney to keep failing companies in business. Inessence, this scenario is passing losses on to taxpaye

We heard from Karl Rove, former presidential advisto George W. Bush, and General Wesley Clark, formdemocratic candidate for President of the United Stain the form of a debate over the current stimuluspackage. The debate was a heated one where the twomen discussed the merits of House Bill HR 1, an $8billion dollar stimulus package currently being votedin Washington. Mr. Rove was opposed to the currenversion of the stimulus package and suggested that tstimulus package was poorly constructed and much the spending would not create jobs or boost theeconomy. General Clark was certain that HR 1 waswhat America needed. The speakers had high hopesthe future of our economy, but suggested a difficultroad was ahead.

After the meetings, I made it a point to get out on theLas Vegas Strip and get some exercise and fresh air.did get some exercise. I noticed a nearly completedcasino on the strip that is called the City Center. Thian $8 billion project on Las Vegas Blvd. and is the mexpensive private development in history. Just for soscale, Denver International Airport, which was notprivately funded, rang up at about $4.8 billion. The CCenter is a joint venture by Dubai World, a corporatowned by the Dubai Government and the MGMMirage. The 18 million-square-foot project is pursuithe Leadership in Energy and Environmental DesignCertification (LEED®). The project is slated to becomplete in November of 2009. The massive buildinefforts on the Las Vegas Strip do not seem to be phaby these tough economic times.

Circumstance in today’s economy have affected all us and will continue to create ripples in regulation antaxes for years to come. The overall theme at theconference was optimism regarding our economicfuture. For every difficult change and added challenthere is also an opportunity to be more efficient andovercome these obstacles. Persistence through hardtimes, after all, is what has made this country strong