Executive Survey: After the S&P downgrade, some execs are ready for political revolt

8/6/2019 Executive Survey: After the S&P downgrade, some execs are ready for political revolt

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Ready for political revolt

Cheryl Hall surveyed more than 50 DallasFort Worth businessowners andexecutives last week in the midst of the market turmoil ignited by Standard& Poors downgrade of U.S. Treasure debt.

They were asked:

1. Do you think Standard & Poors downgrade was warranted?

2. What do you see as the longerterm impact of the downgrade?

3. Is there a bright side to it?

4. Do you feel concerns of a doubledip recession are justified or basedprimarily on fear?

5. How likely do you believe a doubledip recession is nationally andlocally?

6. What is the one thing that worries you most?

Here are their complete responses.

Elizabeth Falconer, president, Struhs Commercial Construction Co.

1. Not really, maybe a little premature. (downgrade not default)

2. Compared to other countries downgrades (Canada, 1994, Japan 2001),the impact was minimal. Hopefully the impact here will also have little longterm effect.

3. Maybe voters will wake up and figure out that the change we got inWashington is not necessarily for the better.

4. Fearbased, which can become a selffulfilling prophesy.5. Nationally 50/50; locally maybe a 10 percent chance.

6. Congress and its uncanny inability to understand economics. They needto bring Dr. Art Laffer [member of Ronald Reagan's Economic PolicyAdvisory Board] out of retirement!

Bob Bachman, partner, USGT Investors LP

1. Yes.

2. Mostly negative.

3. I hope that the downgrade and the subsequent stock turmoil might force

our politicians in Washington to see the world the way it is and proposeactions (like ratifying free trade agreements) that might actually have apositive effect on the economy.

4. Fear plays a big role, but the concerns are real and justified.

5. My guess (and I emphasize the word guess) is that there is a 50 percentchance of a doubledip nationally and a 25 percent chance locally. Butnobodys predictions are reliable. We really are in uncharted territory.


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6. That our politicians in Washington continue their dysfunctional behaviorand thus make the chances for a serious double dip much higher.

John P. Boone, chairman, Belmont Global Advisors Inc.

1. Was the downgrade warranted: Absolutely yes.

2. Longerterm impact: This depends to some degree how the Congress andthe administration react assuming no significant moves by them, oneway or another, I feel the effect will not be that significant probablyinterest rates a bit higher.

3. Bright side: If this would be enough of a wakeup call for all of us, whichunfortunately I doubt, and each of us realizes that we all need to work atour profession and run our personal finances in a more diligent manner.

4. Doubledip recession: More fear than justified, but growth will remainvery modest.

5. Doubledip recession likely: Nationally, 25 percent or so chance; locally,very little chance.

6. Worries: Too many of us those in government as well as ordinarycitizens will continue to look to the government or to the FederalReserve to take actions that will solve all our problems. As noted above,each of us needs to handle our own affairs in a manner which contributesto a more vibrant economy.

Jan Collmer, retired tech executive, past chairman of Dallas/Fort WorthInternational Airport

The downgrade was long overdue. The markets have taken it somewhat instride.

The markets are also being influenced by many other problems in theMiddle East and Europe, particularly the plight of the euro. As in the UnitedStates, there is not enough money available to solve the European commonmarket problems. Germany and France cannot bear the load alone.America will be little help. Throw in a multiplicity of wars, all of which seemunwinnable in the traditional sense, and you bleed all the developedcountries dry.

Iran has recently threatened to take down the American electrical grid inretaliation for Stuxnet [a computer worm used against Irans industrialsystems]. America is so dependent on the Internet that it seems completelyplausible that a takedown of utilities could be accomplished.

The debt problems that we are dealing with in the United States should

have been dealt with 20 to 30 years ago. There has been a huge overpromise on benefits of all kinds. Some small towns are having to declarebankruptcy because of pension promises made to fire and police. Almosttwothirds of the U.S. budget is transfer payments of one kind or another.We clearly have created a welfare state that we cannot sustain. The NewDeal got it started, the Great Society accelerated it, and the Carter andClinton policies put it on steroids (think Community Reinvestment Act).


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The promises made by Social Security, Medicare, Medicaid, drugs and nowuniversal health care cannot be delivered. It has been acknowledged bymany that our path is unsustainable.

Throw in the incredible manufacturing competition from China and theother Asian countries (and now substantial research and development inthe Third World), and you have a perfect storm.

In addition, the cultural decline of America and the growing abandonmentof the education and work ethic do not lead to a quick recovery regardlessof what the president or congress can do. More taxes seem inevitable, butthey will probably be counterproductive. Clearly, more taxes will not solvethe problem.

Steve Swanson, president, DAC Patient Recruitment Services

1. Yes, the downgrade is warranted and, by some accounts, should haveoccurred earlier given recent economic history.

2. A small corresponding uptick in interest rates as the economy improves.

3. The potential for renewed diligence on the part of legislators to tacklethe very real issue of debt. Lawmakers need to rebuild credibility, and Ibelieve U.S. business is watching closely.

4. Justified as the European Union has not undertaken the recapitalizationof financial institutions that the U.S. has.

5. Dallas is faring better than many parts of the country. Increasingly, worldeconomies have become more linked and the threat of contagion from theEU is real. Fortunately, U.S. business is in better shape relative to theirbalance sheets and cash on hand, allowing us to better weather theimpending market adjustments.

6. A lack of political will on the part of lawmakers. The type of brinkmanship

occurring discredits us in the international community. Given the level offiscal austerity required over time to improve the debt picture such effortswill need to yield much more meaningful results to be viewed by mostAmericans as credible.

Glen Agritelley, owner, T Bar M Racquet Club, Mercy Wine Bar andSebastian's Closet

1. In a way, no. Right now this country is not a credit risk. However, yesfor the direction we are headed in and the lack of our Congress andpresident to work together to make anything happen. This recent fiasco ofan agreement is a pebble in the ocean of what needs to be really done.There is very little, if any, real serious costcutting in the entitlementprograms the elephant in the room that no one seems to be recognizing.

2. It weakens an already fragile economy. Although the economy has madesome strides to move forward, key indicators like the job numbers andhousing remain well below where they need to be. The uncertainty of whatthe future holds is the biggest threat to this economy. Businesspeople likeme are not willing to take on new risks or investments not knowing whatdirection this country is going in. And the direction I see does not lookpromising.


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3. I havent found it yet if there is.

4. A bit of both actually. The recovery prior to the downgrade was fragile atbest, and until people get back to work and confidence in our countrysdirection becomes clearer, the threat of doubledip recession is real.

5. I think the odds are 5050 right now. The next six months will tell the

tale. We in Texas stand a better chance of not seeing it as we have faredbetter than most through the first recession.

6. What is the one thing that worries you most? That President Obama getsreelected and we continue down this road of redistribution of the wealthand socialization of our economy.

Mike Hernandez, chief executive, D&M Leasing, Mortgages USA

1. Yes.

2. I think it will raise overall rates approximately a point.

3. Hopefully it will finally bring fiscal responsibility in Washington, but I'm

not holding my breath.4. I don't really know, but obviously hope it's based on fear. I know thatregardless of the effect, Texas will continue to fare better that other partsof the country.

5. See above

6. The complete lack of business knowledge by those in Washington whoare making the rules.

David Biegler, chief executive, Southcross Energy LLC

1. Ratings are meant to reflect an entitys ability to finance its debt, which

should not be in question.2. The downgrade was very much an expression of frustration over thepolitical systems inability to produce a plan for deficit reduction and not ofability to pay. The real question is not the longterm effect of thedowngrade itself but rather whether it has the derivative impact of tippingthe balance in favor of truly addressing this problem.

3. The bright side is that the downgrade, along with all that has happened,seems to be producing impetus for ongoing actions. Maybe this time wewill truly begin to deal with the countrys deficit problem and not againimmediately revert to putting our heads in the sand.

4. There is no difference between a recession caused by facts and onecaused by fear. It is still a recession. Fear is nothing but the normal reactionof risk aversion and our leaders have caused a great deal of fear withoutany mitigating actions. The risk of a doubledip recession will not subsideuntil actions dissipate the fear.

5. It is at least a 5050 chance.

6. My biggest worry is about the fear and malaise that have invaded theAmerican consciousness. Without leadership focused on restoring thepublics confidence, prolonged long ennui will have longterm, detrimentalconsequences.


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Bobby Haas, principal, New MainStream Capital

1. Do you think Standard & Poors downgrade was warranted? Yes

2. What do you see as the longerterm impact of the downgrade? It willprolong the economic malaise we are in.

3. Is there a bright side to it? No, unless it delivers an electric shock to thedysfunctional political system.

4. Do you feel concerns of a doubledip recession are justified or basedprimarily on fear? Justified.

5. How likely do you believe a doubledip recession is nationally and locally?Likely nationally with some impact locally.

6. What is the one thing that worries you most? Government dysfunction.

Bob Pearson, chief executive, Pearson Partners International Inc.

1. Yes the downgrade was warranted, and if the inept people we have inWashington would have listened to S&Ps warning ($4 trillion or adowngrade), we wouldnt be in this situation.

2. Longer term it will mean higher interest rates and an embarrassingfurther deterioration of the dollar.

3. The only bright spot is that I hope people have long memories and voteall the incumbents out next November.

4. and 5. Yes, I think we can likely have a new recession because consumersread the paper and wont spend. So there goes 70 percent of the economy.

6. The thing I worry most about is that the idiots in Washington dontunderstand how to lead, are all on vacation and evidently dont care, yet

they will get their full salaries for the rest of their lives.

Jim Fite, president, Century 21 Judge Fite Co.

1. Not warranted, but surely should get peoples attention on Capitol Hill.Waiting until the last minute does not work for many reasons.

2. For the real estate business and consumers in general, higher interestrates. This will be from the general economic policies of not living withinyour income limits and printing money.

3. The only bright side will be if Congress gets the message enough isenough!

4. As for real estate, we are still in the first recession. Lending restrictionsmust loosen on singlefamily homes so that buyers can enter the marketwith confidence. The pendulum needed to go away from the subprimelending, but the current restrictions are ridiculous.

5. 5050. Jobs and consumer confidence will keep us out of a double dip.

6. The uncertainty of the national policies without understanding of MainStreet America. As my father, Judge B. Fite, said, What we have is too


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2. I am hopeful that the longterm impact of the downgrade will be thatwell get our financial house in order and do whats needed to get itupgraded.

3. If there is a bright side, it is that the embarrassment of the downgradewill cause the policymakers in Washington to make hard choices onspending.

4. and 5. The concerns of a doubledip are a bit overblown. However, somuch of the economy is driven by how consumers and small businessesfeel. So if they are scared and stop spending and producing, it could driveus into another recession. A doubledip recession is somewhat unlikelylocally, because we keep adding jobs. But I wouldnt be surprised if someparts of the country suffer what some economists will call a doublediprecession (although things really cant get much worse in Arizona andFlorida).

6. The one thing that worries me the most is that we now have morepeople in this country who are not paying taxes than those who are. Thathas the potential to turn into class warfare.

Chuck Dannis, president, Crosson Dannis Inc.

1. Yes, but I do not believe anyone really thinks that the U.S. would everdefault.

2. Longterm investors now have to factor into their investment decisionsthat such a downgrade is indeed possible. I dont think they believed thatbefore.

3. Someone not quite sure who yet will make a boatload of money offthis politically driven, shortterm crisis.

4. There has to be concern, simply because of the combined effect of(potentially) higher interest rates and no job creation.

5. We will eventually follow the course of the national economy, but I amsure glad to be here in Dallas than anywhere else if we do double dip.

6. What is the one thing (about this economy) that worries you most? Ajobless recovery really adds nothing to the health of the real estate market:jobless people shop less, dont buy houses, double up in rental housing anddont lease office space. No new jobs equals a downright pitiful real estatemarket.

Paul Spiegelman, chief executive, Beryl Cos.

I honestly dont feel qualified to answer 15.

6. What worries me most is that we have a political system that is puttingour people and our country at economic risk by turning business intopolitics. Leave the business to us.

Carol Reed, principal, Reeds Public Relations Corp.


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Like anyone cares how I feel about the markets. Politically this isdevastating for Obama and his reelection campaign. I can just see theopposition advertising now.

Gail Davis, president, Gail Davis & Associates Inc.

1., 2. and 5. I'll leave these to the experts.3. Is there a bright side to it? We're Americans, entrepreneurs, leaders.There's always a bright side! I'm fortunate to be in the business ofinspiration, so I'll share what one of my favorite speakers, Michael Treacy,shared with our team: Only a fool would bet against America.

4. Do you feel concerns of a doubledip recession are justified or basedprimarily on fear? If there's one thing we've seen during the downturn, thebusinesses doing the best don't operate on fear. We've grown yearoveryear because we haven't stuck our heads in the sand, rather we've pushedahead and deepened our client relationships, so when they do have moneyto spend on speakers, they have a source they trust.

6. What is the one thing that worries you most? That all these issues aredetracting from what we need to do as a country: Grow, grow, grow theeconomy. I have been privileged to work with great clients who believe animportant part of the equation is inspiring their employees, so let's get to it.

Jo Staffelbach Heinz, principal, Staffelbach

1. Do you think Standard & Poors downgrade was warranted? No! It wasmore about sending a message to our government about its inability toresolve its budget problems. The downgrade told us nothing new about thequality of our debt or the likelihood of default.

2. What do you see as the longerterm impact of the downgrade?

Questioning, and rightly so, of the worlds economic condition and acontinued erosion of confidence.

3. Is there a bright side to it? Possibly, if the world thinks a marketcorrection was warranted. But thats stretching it. European countries thathave spent themselves into a corner will make an effort to correct theirmistakes, which will be good for longterm growth. The populace is awake,paying attention and wanting results. This is positive.

4. Do you feel concerns of a doubledip recession are justified or basedprimarily on fear? Fear of further recession has been fueled by these eventsand ultimately stokes the fire that the global economy is faltering in allaspects. This fear is evoked not only by politicians but also by the 24/7national televised press.

5. How likely do you believe a doubledip recession is nationally and locally?We have every reason to believe that here, regionally, we will be better offthan other areas. But job growth is essential for a thriving economy. If wehave job growth, we have a larger base for taxation and increased revenue.

6. What is the one thing that worries you most? Lack of leadership inWashington. This is not a time for politics. This is a time for leadership andsolutions.


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Craig Hall, real estate developer, Hall Financial Group

1. No.

2. The downgrade may be seen as the spark for the selloff in the stockmarket on Monday, though I think longer run we would have seen a daylike that with or without the downgrade. Albeit not in a straight line, I feel

the market still has quite a ways to go to the downside.3. S&P had the subdebt market crisis wrong, and I think they have the U.S.ability to repay its debt wrong. I dont see a bright side to any of that.

4. I remain fearful of a doubledip recession and would argue that, for manypeople, we have been in one continuous recession from the end of 2007. Apolitical focus on cutting spending is a wrong question. We should beconcerned with creating growth and jobs.

5. Nationally, we are more likely than not to have GDP go into the negativeterritory, or a doubledip recession, as it is called. Locally, we could bedragged into it as well, although we are doing better than most parts of thecountry.

6. What worries me most is figuring out how to get traction on creating jobsand really coming out of the great recession started in late 2007. Whilearguably the recession technically ended in mid2009, I wouldnt say 2010or 2011 to date have been normal by any stretch of the imagination. Weneed some new thing! Something needs to be done to create quality jobs.Something needs to be done to reverse the trend of the economy wherethe rich get richer and the poor get poorer, and we lose the middle class.This is socially politically and human rights wise unsustainable.

Dennis McCuistion, TV host, McCuistion

1. Yes, and very late in my opinion.

2. The downgrade is not the problem. The fiscal situation is the problem.S&P has no credibility. They are just saying the emperor has no clotheswhen the emperor has been naked for 10 years.

3. Only if it gets the attention of the 535 plus 2, and I doubt they will get it.And if they do, they will usually do the wrong thing.

4. Justified.

5. Somewhat likely.

6. That the American people cannot and will not wean themselves awayfrom seeing the entitlement mentality as a right, and that big corporationsand Wall Street will continue to game the system.

Tom Hansen, chief executive, Heelys Inc.

1. No. The rating is simple a statement of odds on the ability of the U.S.government to repay their debts. That has not and will not change. This ismore of a political statement and quite ironic considering it was the grossmiscalculations of the ratings agencies on the safety of mortgagebackedsecurities that helped get us into this mess in the first place.


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2. Longterm implications could be a rise in interest rates, but that wouldbe negligible. The bigger impact will be on the political process and the hueand cry for reduced spending and debt reduction. Thats a good thing, butits sure to be messy and reported by the denizens of the 24hour newscycle like tabloidstalker updates. Itll be great TV if you like the horrorgenre.

3. The bright side could be the political will to finally address spendingthats been out of control for decades. Doubtful that will come from thecurrent crop of Washington residentsmore likely from those installedwhen the coming kill all the incumbents movement comes to fruition.This is a Howard Beale moment (Paddy Chayefsky had it right.)

4. Doubledip recession concerns are purely fearbased. Balance sheetshave never looked better. Companies are hanging on to cash instead ofinvesting or hiring due to total uncertainty as to where the government isgoing on anything. No clarity, no leadership from Washington and noone in the business world will be moving forward at all so fear sustainsthe bad economy. Doubledip recession is not likely. Were still riding thefirst dip.

6. What worries me most is the lack of leadership from Washington. Itssmalltime, smallminded politicians working to hang on to their jobs bypandering to the extreme elements of their bases. They fear gettingprimaried by someone from the lunatic fringe. And frankly, we should allfear that. We need fundamental tax reform and clear, concise economicpolicy conceived and executed by adults.which is a far cry from whatshappening now.

Jody Grant, chairman emeritus, Texas Capital Bancshares

1. I do not think they were justified in the downgrade. Even though ourdebt to GDP has risen, our deficit is at a post WWII high, and the trajectory

of both is unacceptable, we are still the strongest country in the world as areserve currency. There is no other currency that offers the depth ofliquidity, stability of government, free market system (by far the bestsystem in the world), transparency of finances (both public and private),and financial integrity than the U.S.

Switzerland, Germany, Japan are all too small. Germany is tied to the EU,which is struggling mightily. Japan has mismanaged their economy for twodecades. Can you imagine China as the world's reserve currency? With theirmanaged economy and lack of transparency, there is no financial integrity.As unhappy as we may be with D.C., we've still got the best economy, andwe are AAA! A breadbasket of currencies is too cumbersome.

2. If the financial markets continue to spiral downward, we could evolve

into financial chaos. Theres also the wealth effect. As assets decline invalue, people feel poorer consumers begin to curtail buying andbusinesses postpone capital investment, hiring, and building of rawmaterials, inventory, etc. It is estimated that the depreciation of $1 trillionin value of assets costs 1 percent in real GDP.

3. Even though I think it was unwarranted, it may be the catalyst that forcesus to get our house in order.


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4. The concerns are based on fear and uncertainty. The markets hateuncertainty and don't work well in the face of declining confidence.Economists have a very good understanding of the mechanics of themarketplace supply/demand, etc. and have built wonderfully intricatemodels based on historical trends and the mechanics previouslymentioned. We know far less about the psychology of the marketplace and

what makes businesses and consumers act irrationally. We could be on theverge of a crisis of confidence.

5. If we slide into another recession, I would not refer to it as double dip.The recession of 200809 ended. If we have another recession, it is of ourown doing and stands on its own. Doesn't really matter, though; a recessionis a recession. The chances of another recession are still less than 5050,but they are higher now than they were before the recent fiasco in D.C. Wewere on a slow but steady growth path everything was improving.Unemployment lagged, but it was destined to lag and could be typified aslargely structural. Businesses shrank their workforces with lagging demandand don't want to hire in the face of uncertainty. Jobs have been shippedoffshore, replaced by technology, and the economy is continuing a longterm transition from manufacturing to services. People have to beretrained.6. I'm worried that Congress won't act until they're forced to by aweakening dollar, a downward spiraling economy and higher borrowingcosts. As good as it is, sometimes the system is too reactionary and slow.This is a big ship, and it takes a long time to turn it around!

Michael Burns, chief executive, Michael A. Burns & Associates

1. Do you think Standard & Poors downgrade was warranted?Unfortunately, yes. S&P is confirming what everyone already knows.Rhetoric isn't going to be enough to solve the nation's financial problems.

2. What do you see as the longerterm impact of the downgrade? I think itcould weaken the dollar's future value and role as a reserve currency. Howmuch I'm not sure.

3. Is there a bright side to it? Yes. A yellow warning light is better than a redone. It's bound to send a signal to Washington that will favorably impactbipartisan decision making.

4. Do you feel concerns of a doubledip recession are justified or basedprimarily on fear? They're primarily fearbased. Business and consumersalike are certainly going to be more cautious, but overall things are pickingup.

5. How likely do you believe a doubledip recession is nationally; locally?Locally, I think the bad news has already been absorbed and businesses aremoving forward. I'm not sure how it will play out nationally, but the tone ofthe New York Times is that the doubledip recession is already a reality.

6. What is the one thing that worries you most? The timing of this isespecially unfortunate because companies will be making decisions on their2012 budgets in Q4. If the downturn continues even for a few weeks,companies could decide to hold off on their spending, which could extendthe slowdown into 2012.


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Jerry Meyer, chairman, Valhalla Holdings Ltd.

1. Do you think Standard & Poors downgrade was warranted? No. I find itinteresting that the people who rated mortgage debt tripleA can nowdowngrade the U.S. debt. It's not their job to rate on political matters only on financial matters.

2. What do you see as the longerterm impact of the downgrade? Almostnone long term.

3. Is there a bright side to it? Yes. It will impact the presidential election andthe whole political landscape.

4. Do you feel concerns of a doubledip recession are justified or basedprimarily on fear? It is partially justified because so much is based onconsumer confidence.

5. How likely do you believe a doubledip recession is nationally; locally?5050 nationally and locally 7525 against.

6. What is the one thing that worries you most? Besides the politicalquagmire, it is the lack of smallbusiness lending by banks and commodity

prices.

Eric Affeldt, chief executive, ClubCorp Inc.

1. Do you think Standard & Poors downgrade was warranted? Technicallyno, politically yes.

2. What do you see as the longerterm impact of the downgrade? Noneunless the federal government fails to wake up.

3. Is there a bright side to it? Yes, Washington will be inundated byconcerned taxpayers as well as global investors.

4. Do you feel concerns of a doubledip recession are justified or based

primarily on fear? Justified, bad economic policies (globally) must beaddressed. Please send your congressional representatives and thepresident a copy ofFreakonomics. Incentives matter, and government mustbe limited.

5. How likely do you believe a doubledip recession is nationally and locally?40 percent nationally and 20 percent locally. I really don't expect the realbad stuff until 2013, because I expect the can to get kicked further downthe road until after the elections.

6. What is the one thing that worries you most? Our failure to learn fromhistory. Complacency.

Barney Adams, founder, Adams Golf Inc.1. Im not technically competent to say if the downgrade was warranted.

2. and 3. If there is a positive, its identifying the fact that the Americaneconomy needs something to improve it. If we werent aware before weought to be aware now.

4., 5. and 6. We need to reestablish pride in our elected officials 82percent disapproval of Congress is a travesty. The vehicle that will do this is

jobs; private sector jobs, not public makework ones.


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Clark Durham, managing director, Jefferies & Co.

1. Do you think Standard & Poors downgrade was warranted? No, not onthe basis of ability to pay. U.S. federal assets are vast and saleable to payour bills for now.

2. What do you see as the longerterm impact of the downgrade? My hopeis a balanced federal budget. The reality is higher costs of funding two tothree years out for all borrowers.

3. Is there a bright side to it? Yes. A focus on a new breed of politics inWashington, D.C., reminiscent of Ronald Reagan's Resolve to Win the ColdWar only this time, the resolve is for a Smaller More EfficientGovernment and Simplified Tax Code.

We at Jefferies wealth management think we can buy for the long haul inthis market turmoil.

4. Do you feel concerns of a doubledip recession are justified or basedprimarily on fear? Based on fear at this point. The glow of Asian and Latin

American growth is still alive for now. People coming in from the cold,eating protein, taking modern medicine, living longer and better in China,India, Brazil, and the Asian Rim is a powerful force.

5. How likely do you believe a doubledip recession is nationally and locally?No doubledip nationally, just slow growth. Texas and Dallas should seefaster growth with energy, technology and education jobs better thanaverage. Texas encourages small business with our no state income taxstructure.

6. What is the one thing that worries you most? First biggest worry: A runon U.S. Treasury Bonds; i.e., an unwillingness of investors to buy U.S.Treasury Bonds unless yields are 10 percentplus, similar to what happenedin Spain and Italy. Temporarily that would grind U.S. business to a halt.

Second biggest worry: The Cowboys don't make the playoffs this year.

David Cegelski, chief executive, Dynamic Growth Strategies

Whether or not the downgrade was warranted or justified may not be thereal issue. What may be the core message from this downgrade (and fromthe action taken by the Federal Reserve) is that the economic recovery willtake longer than we perhaps anticipated (or want) and, more importantly,that it will take leadership from both our government and the privatesector to make it happen.

I think of it more as a wakeup call that businessasusual in Washingtonand on Main Street USA must fundamentally shift. Our leaders must learnto collaborate, to inspire through visionary leadership and to allow newideas to flourish by displaying patience in place of panic.

My biggest fear is that many businesses will be more like Chicken Little andnot look for ways to grow. This environment presents great opportunitiesas long as you don't believe the sky is falling.

Jerry White, director, Caruth Institute for OwnerManaged Business


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1. Do you think Standard & Poors downgrade was warranted? Yes.Referees call them like they see them.

2. What do you see as the longerterm impact of the downgrade? I hope itwill be a wakeup call for Washington to deal with the real problem ofexcessive deficit spending paid for with ever increasing debt.

3. Is there a bright side to it? Even modest improvements would boostsentiment and encourage businesses.

4. Do you feel concerns of a doubledip recession are justified or basedprimarily on fear? They are justified based on a weak economy and theapparent inability to get Washington to focus on smart solutions to realproblems.

5. How likely do you believe a doubledip recession is nationally and locally?It is certainly possible, but continuing malaise is my best guess. Locally weshould malaise less.

6. What is the one thing that worries you most? An unexpected chainreaction of defaults and failures possibly originating in Europe.

John Dienes, chief executive, Park Cities Bank

1. Notwithstanding the source, they got it right based on the toxic/politicalgridlock, but their downgrade was not warranted on the ability of the U.S.to pay its debts, which a rating agencys grade is supposed to reflect.

2. No real significant lasting impact because sovereign debt markets arerelative and the U.S. is still the strongest.

3. Maybe; if this will wake up our political system to do what is right for theAmerican people versus what is right politically.

4. and 5. No. There are more positive economical fundamentals thannegative. However, fear and perception are powerful and can havedevastating effects. Locally no, because of our diversified economy, lowtax and business friendly environment. Nationally 6040 chance. Recentpolitical tilt toward cost cutting will/could affect businessspending/expansion, job growth and, thus, consumer spending.

6. Washington, D.C.

Mary Frances Burleson, chief executive, Ebby Halliday Real Estate Inc.

1. Yes.

2. It will make American public aware of enormous debt problem thiscountry is incurring, and will make public demand real debt reform from

Congress.3. We are in North Texas.

4. Depends on actions of the Federal Reserve.

5. Nationally possible; locally no.

6. Government intervention in business and retraction of consumerspending.


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Tom Niesen, chief executive, Acuity Systems Inc.

1. Yes. S&P explanation was that they had faith in the U.S., not in thegovernment coming together and making it work. To put it in terms that weall have to live with, if a credit company wants to rate my credit score and Ihave millions in the bank but I dont pay my bills or the ones I do pay Imalways 120 days past due I will get a lower score.

2. It will probably make it harder to get money and be the first step towardshigher inflation.which is coming anyway.

3. Im hoping it is a wakeup call to the current people in office and surely awakeup call for the next administration. But that is a high hope.

4. Fearbased. I only say that because Im not sure we got out of the firstrecession. People just realized that they had to get back to business and theeconomy started up again, but without unemployment going away. Did thefirst recession even end?

5. Compared to the East Coast and West Coast, Texas is doing very well. Ifthere is another dip it will be nationally, but Texas will not be hit very hard.

6. The government stepping into businesses where they have no right to bein and not making decisions on the economy for the benefit of the overallgood of the U.S. but their own personal agendas.

Jim Erwin, managing partner; Erwin, Graves & Associates LP

1. Do you think Standard & Poors downgrade was warranted? Absolutely.

2. What do you see as the longerterm impact of the downgrade? Nothingin the longer term (Except perhaps positive as per #3.) The S&P downgradeis simply the diagnosis of an illness, the illness is runaway spending and anearexcessive level of national debt. The longterm consequences will beattributable to the illness, not the diagnosis.

3. Is there a bright side to it? Yes, hopefully, Congress now may get seriousabout bringing the growth of public debt under control.

4. Do you feel concerns of a doubledip recession are justified or basedprimarily on fear? Justified. The stimulus was largely wasted as it wasmostly a handout of money that was not focused on job creation. Thecurrent administration in Washington is not business (and job creation)friendly.

5. How likely do you believe a doubledip recession is nationally and locally?Nationally, moderately likely; locally, somewhat less likely.

6. What is the one thing that worries you most? The country is being run by2012 electionyear politics and not sound economic policy.

Todd W. Carter, president, Panda Power Funds

1. Do you think Standard & Poors downgrade was warranted? Absolutely.The downgrade was clearly directed at the lack of bipartisan leadership inWashington. Instead of dousing the fire, President Obama fanned theflames that caused the downgrade. He blamed Republicans. Then heblamed Standard & Poors. The president then proceeded to beat a dead


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horse, saying higher taxes and higher spending would put America back ontrack. The DJIA tumbled.

2. What do you see as the longerterm impact of the downgrade? If theleadership in Washington doesnt respond (so far, its not lookingpromising) to S&Ps wakeup call, then absolutely nothing will happen, atleast over the next two years. The American people get it and will respond

accordingly in two years.3. Is there a bright side to it? Yes, hopefully this will be a call to arms. Thealternative would be tolerating an underperforming market similar to whatthe Japanese did during the past 20 years.

4. Do you feel concerns of a doubledip recession are justified or basedprimarily on fear? The current concerns of a doubledip recession are not

justified. Quarterly earnings among S&P 500 companies are way up. Rightnow, people are trading on fear and uncertainty, promulgated by a lack ofconfidence in Washington.

5. How likely do you believe a doubledip recession is nationally and locally?Nationally, I think the odds are low, and, locally, even lower.

6. What is the one thing that worries you most? The lack of leadership inWashington. We can fix the debt problem, but we have to have leaderswho are willing to make hard choices. I dont want to wait another twoyears.

Mark Okada, chief investment officer, Highland Capital Management LP

1. No answer.

2. What do you see as the longerterm impact of the downgrade? Wehope it forces our politicians to live within their means, just like the rest ofAmerica.

3. Is there a bright side to it? Perversely, the impact so far is lower interestrates, making funding the deficit more affordable. Also, it focuses attentionon our debt issues and consequences.

4. Do you feel concerns of a doubledip recession are justified or basedprimarily on fear? Business cycles during this recovery will be shorter ingeneral and most of the economic data is pointing to a slowdown in GDP.

5. How likely do you believe a doubledip recession is nationally and locally?The U.S. economys capacity for growth is very strong, given the health ofU.S. corporations. However, confidence is definitely lacking and will bedifficult to restore until fiscal and monetary policy is stabilized. Locally,Texas is in much better shape than the rest of the country.

6. What is the one thing that worries you most? We worry about a hardlanding in China, the one country that most supports global growth. Theexcesses in China, in many ways, are more glaring than those behind the2007 subprime collapse.

Mike McKool, principal, McKool Smith PC

1. No.

2. Serious damage to U.S. prestige in foreign markets.


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3. Maybe those in Congress whose agenda led to this will face reality.

4. Enough fear alone will create the second dip. It's serious.

5. There's a material chance, though less than 50 percent

6. Congress.

John Goff, chief executive, Crescent Real Estate Holdings LLC

1. Do you think Standard & Poors downgrade was warranted? The U.S. hasrevenues of $2.2 trillion and expenses of $3.8 trillionthat doesnt soundAAA to me. Saying we are AAA because we have the power to tax is amisguided argument. That being said, ratings are part voodoo. I have neverrelied on a rating to buy anything. Whether you agree with their decision ornot, I predict that in five years, it will be referenced as the turning point inU.S. fiscal policy just the catalyst we needed to finally get serious onbalancing our budget and addressing the national debt.

2. What do you see as the longerterm impact of the downgrade? It willforce the tough decisions to be made on spending, including entitlements.This is the apolitical, thirdparty catalyst that perhaps we needed.Otherwise, the rating change itself will have minimal impact.

3. Is there a bright side to it? Yes, it is focusing the nation on the necessityof living within its means. It will help force muchneeded political changeand hopefully, leadership and maybe even a plan.

4. Do you feel concerns of a doubledip recession are justified or basedprimarily on fear? Based more on fear although it is a possibility. We mayall feel like we are in a recession for the near term with highunemployment and low growth. This will most likely remain until there is achange in Washington.

5. How likely do you believe a doubledip recession is nationally and locally?

Very little chance locally. One in three nationally. Not a lot of difference inliving through 1 percent growth and a recession. They both feel lousy.

6. What is the one thing that worries you most? Lack of leadership inWashington. Politicians that have no respect for business and dontunderstand basic economics or even math.

Norm Bagwell, chief executive, Bank of Texas

1. Do you think Standard & Poors downgrade was warranted? No answer.

2. What do you see as the longerterm impact of the downgrade? Thedowngrade of U.S. debt to AA+ will raise anxiety more than interest rates.In a bigpicture sense, a slight downgrade in our credit rating is lessimportant than the growth rate and momentum of the U.S. economy. Theprimary challenge remains the same for the U.S.: How do we foster growthwhile simultaneously cutting government spending?

When you think about the dollar and the credit of the United States ofAmerica, there is not a better alternative in the world today for safety. Thedollar is the global reserve currency, our credit is still the best in the world,and, most importantly, our markets are the most liquid. Even so, we cant


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take our standing for granted as recent events have shown. We need to getour fiscal house in order.

3. Is there a bright side to it? Hopefully a Washington wakeup call and asense of urgency. Get down to business and deal with our budget issues.We should expect our leadership to come together and to have the courageto do what it takes to regain our fiscal credibility at home and in the world.

4. Do you feel concerns of a doubledip recession are justified or basedprimarily on fear? Justified. Double dip has been on the table for sometime. The downgrade and market selloff only exacerbate the problem.There were signs of underlying weakness already. We have anemic growth,a jobless recovery, stubborn unemployment, lingering housing problems,general uncertainty and little traction from our current economic policy.Add to this the lack of direction from Washington and impact from globalmarkets, and it is fair to say the economy is in a soft spot.

5. How likely do you believe a doubledip recession is nationally and locally?5050. If the U.S. falls back into a recession, I would suspect that Texas isimpacted also, but we should fare much better than the rest of the countrygiven our current situation.

6. What is the one thing that worries you most? The uncertainty. Budgetissues, excessive regulation, unwritten rules, cost of entitlements,ineffective policies, partisan politics, waning confidence have created ageneral uncertainty that is holding back our economy. It is a very difficultenvironment for business and the consumer.

Wilson Chu, partner, K&L Gates LLP

1. Do you think Standard & Poors downgrade was warranted? Yes, but it'sjust the latest Duh! moment from the same guys who brought us AAAratedpiles of subprime.

2. What do you see as the longerterm impact of the downgrade? Minimalimpact (relatively) because were still the tallest midget for now. I'massuming that you're using the Capitol Hill's definition of longer term; i.e.,November 2012.

A couple of decades from now, we could see a China more interested inselling into a booming domestic consumer market than giving us sellerfinancing. Then China will dump our debt, and we'll be paying skyrocketinginterest to pay our skyrocketed debt.

3. Is there a bright side to it? Yes, we get to pay our debt to China and otherforeign creditors in cheaper dollars.

4. Do you feel concerns of a doubledip recession are justified or basedprimarily on fear? Justified.

5. How likely do you believe a doubledip recession is nationally and locally?Both likely.

6. What is the one thing that worries you most? Not enough peopleworking and paying taxes to support those who don't.

Pat Mitchell, managing partnerDallas, Hunton & Williams LLP


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1. Do you think Standard & Poors downgrade was warranted? I don't thinkthe downgrade was warranted if the question is Is the U.S. able to pay itsdebts? But the dysfunction and brinksmanship displayed during the debtceiling negotiations may raise a legitimate question over whether Congressand the president are willing to make the tough decisions that will allow usto ensure longterm fiscal stability.

2. What do you see as the longerterm impact of the downgrade? Over themid to longterm, I expect that the stock market will recover most of thelosses resulting from the current fluctuation. Companies have been postingstrong earnings and have substantial cash positions. These companies havealso spent the last few years trimming their overhead and looking forgreater efficiency, so I am hopeful that recent events won't triggeradditional contraction in employment. Those industries that havesignificant exposure, directly or indirectly, to U.S. Treasuries and/orgovernment securities will be adversely affected.

The real concern is how our federal government addresses the next roundof decisions relating to the budget deficit and the debt limit. Because thisrecent downgrade appears to be the result of political instability rather

than economic concerns, the next six months may be very important.3. Is there a bright side to it? I don't know if there is ever a bright side to ahit to the U.S.s political or economic standing, but recent events may serveas a wake up call in Washington that our elected officials need to focus onwhat's right for the country instead of what's necessary to get reelected.Hopefully, we will see more dialogue and less posturing as we debate anddevelop constructive approaches to resolving our continuing issuesassociated with the national debt, the cost of entitlement programs andtaxes.

4. Do you feel concerns of a doubledip recession are justified or basedprimarily on fear? Whether we are talking about a doubledip recession or alongterm contraction, reasonable people are genuinely concerned that

whatever recovery has been occurring may be negatively impacted. Somemay be reacting out of fear, but I think that their concerns are driven moreby a lack of confidence that we have the political will and statesmanship todevelop balanced solutions to the issues that we confront.

5. How likely do you believe a doubledip recession is nationally and locally?The numbers I have seen range from 25 percent to 75 percent probabilityof a doubledip recession, but I think these are just guesses. The politicalreaction over the next six months will have a profound impact on whetherthese estimates are low or high.

6. What is the one thing that worries you most? Im most concerned withthe apparent lack of leadership among our elected officials and the impactthat the most radical voices on the left and the right seem to have. We

have serious issues to address, and we need serious dialogue to address it.A dogmatic approach may satisfy some constituents but I doubt that it willsolve the problem.

Michael Jenkins, president and managing director, Dallas SummerMusicals


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1. The Standard & Poors downgrade was not warranted. Traditionally it hasbeen a benchmark. However, it has proved to be inconsistent with majorindustries over the last three to five years.

2. The longerterm impact of the downgrade will not be significant.

3. The bright side to the downgrade, if any, should be a wakeup call to the

nation to lower the countrys debt ratios on an annualized and consistentbasis.

4. I do not know if doubledip recessions are justified. A few recessions inthe past have been to rebalance the country toward recovery periods.

5. A doubledip recession is likely nationally, but locally it would have lessimpact in this market.

6. One of the worries is that leisure and entertainment should beconsidered necessities of life included in family budgets. Lately though Ihear audience members saying, I have to buy food and medicine, and Idont know if I can buy theater tickets. I believe discretionary spending iswaning.

Richard Eiseman, owner, Eiseman Jewels NorthPark

1. Do you think Standard & Poors downgrade was warranted? Yes. Ourdebt situation has not been managed prudently.

2. What do you see as the longerterm impact of the downgrade? With theFeds move to freeze rates until 2013, business can seize opportunity togrow infrastructure/expand for next up cycle with lowest finance costs.

3. Is there a bright side to it? Canadas downgrade in 1995 spurred them toget their house in order. This hopefully will a similar impact in the U.S. hoping congress will respond as they did in Canada, looking at spending andrevenue as businessmen do. I wish our congressmen had experience

making payrolls and turning profit!4. Do you feel concerns of a doubledip recession are justified or basedprimarily on fear? If it happens my readings from experts support that itwill come in 2013, probably a bit slower than you might expect. Thehousing and bank leverage has been absorbed, but global issues, especiallyEuropean, persist and are far worse. Emotion plus fear may be less of afactor in propelling sell offs. Hopefully recent memory can defer kneejerkreaction.

5. How likely do you believe a doubledip recession is nationally and locally?To some degree national and local economies have parallels. ButDallas/Fort Worth and Texas proudly are slower to enter and quicker torebound due to our diverse and powerful economy.

6. What is the one thing that worries you most? As the public searches forhighquality, longterm investments, we will be challenged to provide highquality, significant diamonds to meet the growing demand. China and Indiaare fierce competition and recognize this.

Bronwyn Allen, president, High Profile Inc.


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From what Im reading and hearing, most staffing industry executives aresaying that the demand for temporary workers remains steady. Typically, ifwe were headed for a downturn, we would see clients letting go of largenumbers of temporary workers, as weve experienced in previousrecessions before. Fortunately, that has not been the case so far.

According to the American Staffing Association Index, employment in July

was 3.6 percent higher than in the same month last year. With theexception of the typical dip experienced during the July 4 holiday period,the ASA weekly index data show that staffing employment has been edgingupward since February.

The one thing that concerns me in all this is that weve made significantimprovements this entire year in the hiring sector in Dallas, and Id hate tosee that trend move backwards. Its so much more fun and fulfilling to workin an environment with positive energy and movement.

Greg Bustin, principal, Bustin & Co.

1. Do you think Standard & Poors downgrade was warranted? Absolutely.If the CEOs of small and midsize companies that I work with ran theirbusinesses the way politicians are running the country borrowing 40cents of every dollar the U.S. spends theyd be out of business (seebelow).

2. What do you see as the longerterm impact of the downgrade? Thelongerterm impact is that the downgrade creates a spiral effect on otherdebt and on interest rates. One CEO told me that in negotiating purchasesfor 2011 holiday purchases, Chinese suppliers are factoring in risk and usingthe U.S. debt as an excuse to raise costs. Additionally, metal costs areincreasing due to currency instability.

All of this impacts costs of goods, making products more expensive topurchase. People on tight budgets will continue to pull back ondiscretionary spending; people with money will continue to horde it ondiscretionary spending and buy up failed investments for cents on thedollar (land, equipment and businesses).

I sat by a CEO on my flight to Colorado last week who just spent a week inDFW after having bought an oil and gas business that had failed under thecrush of its own debt. Remember the investors mantra: The time to buy iswhen the blood is running in the streets.

3. Is there a bright side to it? Most CEOs I work with are entrepreneurs andare, by nature, optimists. So while they hope the S&P downgrade is awakeup call for politicians, they fear lawmakers are simply going to rollover and hit snooze.

Without a balanced budget, this will be a wasted crisis. Theres an Africanproverb that says, I take no joy that the hole is in your end of the boat.We are all in this boat together, so its time to stop pointing fingers andstart figuring out how to plug the leak.

As one CEO said, We need members of Congress to do whats right for ournation even if it means the end of their political careers.

4. Do you feel concerns of a doubledip recession are justified or basedprimarily on fear? The term doubledip recession implies the recession


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that began for some in 2007 and others in 2008 has ended. The end ofthe past recession has been described as a mirage, with the CEOs who Iwork with battling the reality of higher taxes, increased health care costs,reduced borrowing capabilities, lower capex budgets and a greaterunwillingness on the part of their customers (primarily Fortune 500customers) to make decisions and then honor the commitments theyve

made.5. How likely do you believe a doubledip recession is nationally and locally?The inability of Congress to address the longterm financial problems havesimply brought out into the open issues that have continued to worsensince presidential candidate Ross Perot showed the nation his pie chartsand warned of a growing financial crisis.

Consumer confidence is not just a measure of how people feel but whatthey are spending. What they are spending (or not) drives the economy.Texas will feel the effects of a downturn less than other states, but many DFW companies work with and sell to companies and people all over theworld. A global recession leaves no one untouched.

6. What is the one thing that worries you most? Lack of commonsenseleadership in Washington > more federal spending > higher taxes on thecompanies and individuals capable of creating jobs >civil unrest leading toviolence [see Great Britain] as entitlements are cut and those who havelittle begin to steal, destroy and kill those perceived to have more.

Mike Androvett, principal, Androvett Legal Media & Marketing

1. Do you think Standard & Poors downgrade was warranted? No, it was apolitical critique instead of a reasonable assessment of ourcreditworthiness.

2. What do you see as the longerterm impact of the downgrade? I see it asa wakeup call. Americans dont like to be cast as anything but the best.Perhaps well stop taking our incredibly durable underlying economy forgranted and lawmakers will start getting serious attacking our major butsolvable economic problems.

3. Is there a bright side to it? Yes. This is a bright line moment thathopefully, will serve as a wakeup call for both government and business.

4. Do you feel concerns of a doubledip recession are justified or basedprimarily on fear? Based primarily on fear. You cant go wrong making longterm bets on the U.S. economy.

5. How likely do you believe a doubledip recession is nationally and locally?Well skirt a doubledip recession nationally. Locally, were on firmerfooting, and I think after a brief pause, the Texas economy will continue to

grow.6. What is the one thing that worries you most? Pessimism, fatalism andgovernment gridlockOops. Thats three. We have the smarts andwherewithal to solve any problems and overcome any obstacles as long aswe dont give in to malaise and parochialism.

Randy Bowman, cofounder, MW Logistics LLC


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1. Do you think Standard & Poors downgrade was warranted? S&Psmethodology evaluates several factors regarding sovereign governments,including effectiveness and payment culture. If my business partner and Imet with our lender, revealed that our financial condition had weakened,wondered out loud whether it would be the worst thing if we were todefault on our obligations, and our board was too divided to take timely

action to improve our financial condition and reassure lenders, I suspectlenders would rethink our creditworthiness.

2. What do you see as the longerterm impact of the downgrade? A damperon economic growth and job creation. Every dollar spent on higherpersonal, corporate or sovereign borrowing costs as a result of thedowngrade is a dollar that cannot be spent creating demand in the U.S.economy. The absence of demand is far and away the primary factorimpacting the job creation at MWL.

3. Is there a bright side to it? When a countrys spending levels are suchthat it must fund itself with borrowings, it strains the concept ofoptimism to place a silver lining around a downgrade in your creditrating.

4. Do you feel concerns of a doubledip recession are justified or basedprimarily on fear? Justified, but not an assigned fate. It depends on theprivate sector; the government cant prevent it. If the private sectordeploys some of the cash on its collective balance sheet, it can growdemand. Even if we get it right domestically, the doubledip could happen.Were in an interdependent global economy in which the EU membercountries are facing severe challenges and the economic consequences ofthe ongoing Arab Spring remains uncertain.

5. How likely do you believe a doubledip recession is nationally and locally?In each instance, likely enough to prepare for it, but not likely enough tobank on it.

6. What is the one thing that worries you most? As a businessman, my firstworry is the lack of demand in the marketplace. Nothing else comes in aclose second. As a citizen, the insistence by our elected officials on focusingon strategies more designed to win the political game than solve Americasproblems. When was the last time a problem of any magnitude was solvedin a manner that inspired confidence?

Chris Young, partner, Quest Capital Management Inc.

1. Do you think Standard & Poors downgrade was warranted? Not basedon their previous ratings history.

2. What do you see as the longerterm impact of the downgrade? Longerterm higher interest costs.

3. Is there a bright side to it? It does force us, the American people andWashington, to deal with this instead of just kicking it down the road.

4. Do you feel concerns of a doubledip recession are justified or basedprimarily on fear? Primarily based on fear but may become a selffulfillingprophecy as consumers/businesses hold off on spending until they feelbetter.


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5. How likely do you believe a doubledip recession is nationally and locally?See above. But I don't see there is much fluff. You mentioned smell test,and I think that sums it up perfectly.

6. What is the one thing that worries you most? Fear factor exasperatingthe issues.

Gina Puente, chief executive, Puente Enterprises

1. Do you think Standard & Poors downgrade was warranted? I feel likeeconomic analysts are like football analysts in preseason. Predicting wherethe economy will be at year's end is just as impossible as predicting who isgoing to the Super Bowl now, due to the actual dynamics of the game (i.e.injuries, playing conditions, coaching and players' attitudes). Like themovie, On Any Given Sunday.

2. What do you see as the longerterm impact of the downgrade? The Fedannounced that interest rates will remain flat. However, I believe there stillwill be a substantial continuous suppression on spending.

3. Is there a bright side to it? Low interest rates, seemingly flat for the nextfew years, will hopefully spur small businesses' growth.

4. Do you feel concerns of a doubledip recession are justified or basedprimarily on fear? Fearbased.

5. How likely do you believe a doubledip recession is nationally and locally?Unfortunately my local circle of business associates feels like it is inevitable.We are bracing ourselves and our businesses. We are all operating in anew normal.

6. What is the one thing that worries you most? Banks will continue to stiflethe growth of local small businesses with overly conservative lendingpractices; and whether Rob Ryan will have the Cowboys' defense ready forseason play. What we need now is a good oldfashioned Hail Mary pass onboth counts.

Bob Kaminski, principal, Kaminski Interests

1. The downgrade was probably warranted a couple of years ago if deficitspending and total debt is there primary criteria, but I give little credence torating agencies. Other market indicators are a better gauge. Didnt S&P givetripleA ratings to the residential subprime securitizations? This moveseemed more a statement on the terrible state of our leaders inWashington on both sides of the aisle.

2. There will be shortterm volatility but no longterm impact. The marketwill prevail. Perhaps the longterm impact will be less people payingattention to S&P in the future.

3. See #2 above

4. Concerns of a doubledigit recession may be primarily based onprogrammed fear in our media outlets and electronic trading.

5. We have a long recovery in front of us with adjusted baselines to definerecovery but no doubledip recession nationally. I am not sure we had arecession locally.


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6. I am most worried about the level of confidence in the U.S. and globallyabout the way the United States is being managed.

Thought for the Day for the Super Committee: Cut U.S. governmentspending in all categories 5 to 10 percent across the board and set revisedspending limit. Raise taxes with all additional revenue placed in a specialaccount and dedicated solely to pay down debt. Thats what my banker

would make me do.

Robbie Briggs, chief executive, Briggs Freeman

1. Do you think Standard & Poors downgrade was warranted? Whether itwas or not, I am actually glad that it happened. Maybe now ourgovernment and decision makers will even look harder for solutions andstop the insane spending and building debt we cant afford.

2. What do you see as the longerterm impact of the downgrade? Hopefullywe will take steps to correct our situation and so we can be reestablishedwith a AAA rating.

3. Is there a bright side to it? The reality check is the bright side.4. Do you feel concerns of a doubledip recession are justified or basedprimarily on fear? Fear is always the root problem. As the public overreacts,consequences follow. Things are never as bad as one thinks, or as good,either.

5. How likely do you believe a doubledip recession is nationally and locally?A double dip is more likely on a national level. The economy nationally inthe real estate arena has not recovered yet, so the markets in many areaslike Florida, Arizona, Nevada and parts of California are still sensitive. Texasisnt bulletproof, but we are in the best position nationally and businessesaround the country and the world know that. We are still expecting morerelocations that will buoy our economy.

6. What is the one thing that worries you most? Overreaction andsensationalism, especially in the media.

Ruben M. Duron, chief executive, Servant Energy Partners Inc.

1. Do you think Standard & Poors downgrade was warranted? No, we aretalking about the U.S. Although the debt is high, the U.S. is still a safe bet topay its debt. The downgrade was somewhat politically motivated.

2. What do you see as the longerterm impact of the downgrade? Theremight be higher interest rates passed onto consumers and unsteadiness inthe market caused by uncertainty of where this debt issue will take us.

3. Is there a bright side to it? Yes, there was still confidence in the marketas witnessed by the buying of U.S. Treasury bonds. I am hoping Americanswill take notice of the government in place and look to make changes in ourleadership.

4. Do you feel concerns of a doubledip recession are justified or basedprimarily on fear? There is some justification as it seems like the U.S. hasgotten somewhat out of control on its debt, but fear can be a factor thataffects how people react in times of uncertainty with the economy.


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Spending could be affected due to what people fear might happen. I dontfeel it is justified, but it could happen.

5. How likely do you believe a doubledip recession is nationally and locally?There have been some good signs with employment, but whether we cankeep that up remains to be seen. It seems there are companies havingrecord growth based off the last few years and a lot of that is locally. I dont

think there will be a doubledip recession on both levels, but I dont have acrystal ball.

6. What is the one thing that worries you most? Our leadership. I questionthe people in power and the decisions they are making how everyoneseems to be striving for the same thing but cannot come to a resolution onhow to get there and get things done. Everyone has an opinion, but gettingthere with leaders being on the same page is a major problem!

Bob Buford, philanthropist and author

1. Yes. Theres no decisionmaking consensus. We dont deserve a AAArating.

2. More downgrades and more living beyond our means. This wont beenough for a reality check. My evidence for that is they ran [thecompromise agreement] down to 10 hours before [the deadline]. Theyrestill all mad at one another. Theyre still all running for office instead ofrunning the country. And the numbers dont make any sense at all. Even $4trillion would have been a minor fraction of any kind of living within ourmeans.

3. The only bright side I see is to quote, We have met the enemy, and it isus. But I still see people more worried about their own personal advantage be that a [congressional] job or a bonus of tens of millions of dollars forJamie Dimon [CEO of JP Morgan Chase & Co.]. I dont see any AbrahamLincolns to draw us together.

4. As to the doubledip recession, most historians hold World War I andWorld War II as one war that didnt get resolved. We have one recession,and we havent gotten out of it yet. We havent had a recovery [in jobs].Were crawling along on the bottom. There are millions of jobs that havegone offshore. There are hundreds of millions of people around the globewho want a middleclass lifestyle and theyre our competitors. It isnt justthe people queuing up at these job fairs. Theyre queuing up all over theworld for jobs.

6. What worries me most is: Were losing the American Dream.

Documents

Executive Survey: After the S&P downgrade, some execs are ready for political revolt