Pub. 3 2013 Issue 2

4 www.azbankers.org A S I SAT DOWN TO WRITE THIS COLUMN ON WHAT’S GOING ON AT THE ASSOCIATION, IT OCCURRED TO ME THAT THE ECONOMIC AND POLITICAL CONTEXT IN WHICH OUR members operate require some acknowledgment. Indeed, in order for the Association to more effectively help facilitate the success of our mem- bers, all of our programs and initiatives must be undertaken with a recognition of those issues. It is therefore significant to note that while some of the broader economic indicators are improving, the political paralysis in Washington is still preventing the private business sector from growing the economy to its full potential. Annual GDP is rising, albeit not as quickly or to the climbs the economy is capable of achieving. Unem- ployment is declining, although not as quickly as we would like — nor to the depths the Fed has indicated are necessary to adjust interest rates. And, the ascension in the stock market seems impervious to any of the news coming out of Washington. A recent study by the Federal Reserve Bank of St. Louis, however, points out that publicly listed companies held $4.75 trillion in cash in 2012. That is up from just $1.2 trillion in 1995. So what’s going on here? One interpretation is that pile of cash in our banks is a manifestation of the uncertainty in corporate America preventing the investment in plant, capital, and human resourc- es that would jump start our economy. The business class is waiting for some intel- ligible signs from Washington that our political leaders are ready to get serious about the run- away entitlement spending that is devouring an ever greater share of the national budget pie. The sequester that we are experiencing is govern- ment budgeting on auto-pilot heading toward a bottom line figure that refuses to disturb our unsustainable spending levels on Medicare, Medicaid, and Social Security. At some point this has to beg the question of when our entire federal government becomes one giant health insurance company. Here at home we are, as usual, tracking the national economy within a point or two on unemployment and growth. Housing, which has been an unnaturally large component of our economy, is beginning to show renewed signs of life. Home price increases in Arizona continue to lead the nation. We at the Arizona Bankers Association remain hopeful that our state politi- cal leaders will continue to work to diversify our state’s economy into more high-tech/high-wage vocations. A thriving housing market needs a foundation of a solid and economically diverse home buying public. That requires industries other than home building. The bankers association, meanwhile, contin- ues a fast tempo of activity. We brought a new Director of Member Services onto our small staff at the beginning of the year, Theresa Kleinlein. We had a very successful Banker Day at the Capitol in February. (See 2013 Banker Day at the Capitol, page 8) . Also in February we took four bankers to Washington, D.C. to meet with fresh- men members of our congressional delegation. (See Why Go To Washington D.C.?, page 6). We have several more trips planned for this year: one in April and one in October. If you are interested in making a difference in policy for our industry Continuing a Fast Tempo of Activity Q President’s Message | continued on page 11 We will con Ɵ nue to have workshops and provide best-in-class educa Ɵ onal o ff erings for you and your directors that make naviga Ɵ ng the di ffi cult economic and poli Ɵ cal landscape in which we are doing business a li Ʃ le easier. BY PAUL HICKMAN, PRESIDENT & CEO A MESSAGE FROM THE PRES I DENT