Leo Haviland provides clients with original, provocative, cutting-edge fundamental supply/demand and technical research on major financial marketplaces and trends. He also offers independent consulting and risk management advice.

Haviland’s expertise is macro. He focuses on the intertwining of equity, debt, currency, and commodity arenas, including the political players, regulatory approaches, social factors, and rhetoric that affect them. In a changing and dynamic global economy, Haviland’s mission remains constant – to give timely, value-added marketplace insights and foresights.

Leo Haviland has three decades of experience in the Wall Street trading environment. He has worked for Goldman Sachs, Sempra Energy Trading, and other institutions. In his research and sales career in stock, interest rate, foreign exchange, and commodity battlefields, he has dealt with numerous and diverse financial institutions and individuals. Haviland is a graduate of the University of Chicago (Phi Beta Kappa) and the Cornell Law School.


Subscribe to Leo Haviland’s BLOG to receive updates and new marketplace essays.

RSS View Leo Haviland's LinkedIn profile View Leo Haviland’s profile


America’s substantial federal deficit problem, both for the near term and over the looming long run, captures headlines. A long march through a thicket of forecasts and fixes reveals the immensity of the deficit and the complexity of the intertwined factors and policies creating the deep fiscal hole. However, advancing through the repair proposals of leading legislators unveils the substantial disagreements in outlook regarding a solution. Even in Washington, differences in political perspectives on “economic” matters sometimes represent really serious sharp splits.

Called to action by the need to seriously attack the issue, confronted by the imminent August 2 deadline for boosting the deficit ceiling, the President, Democrats, and Republicans squawk, squeak, and squirm. Few budget combatants want a default, or even a reduction in America’s credit rating. Matters of principle and 2012 election politics will interrelate both to avoid debt default and to defer any noteworthy substantive resolution of the fiscal challenge. Since such a temporary compromise is not a genuine solution, the United States fiscal disaster will continue to beleaguer financial marketplaces.

In the Civil War, so-called neutral nations such as Great Britain and France were quite interested in the war’s outcome. America is not divided or cut off from the rest of the world, especially these days. In regard to the US’s current budget battles, not only its citizens but also countries around the world closely monitor events and trends. Like sovereign debt problems on the European periphery, America’s fiscal issues have global implications. Plus what occurs in debt and interest rate theaters has implications for stocks, currencies, and commodities. For example, if the American deficit crisis worsens significantly, what will the collateral damage be? Will stocks in the US as well as overseas nosedive? Will there be a renewed assault on the dollar?

FOLLOW THE LINK BELOW to download this market essay as a PDF file.

A House Divided- American Budget Battles