Tuesday, 14 May, 2013
Sadly, it appears that another major recession is quickly approaching.
The Dow may have soared past the 15,000 mark, but the economic fundamentals are telling an entirely different story. If historical patterns hold up, the economy is heading for a very rocky stretch.
Americans are not that concerned with the performance of the stock market. They just want to be able to go to work, pay the bills and provide for their families. During the last recession, millions of Americans lost their jobs and millions of Americans lost their homes. If we have another major recession, that will happen again. Sadly, it appears that another major recession is quickly approaching.
Things just continue to get even worse over in Europe. Unemployment in both Greece and Spain is now about 27 percent, and the unemployment rate in the eurozone as a whole has just set a brand new all-time record high.
When I sold all my rentals eight years ago, I used the same countries as well as business boarding up and bankruping to decide it is time to unload and move into cheaper lifestyle and not lose everything that I had worked for since I was a youngster.
I again will give a few of my top feelings as to why were headed for a much worst down fall than eight years ago. Yes, even those of you that have bought into new homes that were too costly for all those that lost their jobs or were cut back. This time the interest rates are lower. Trouble is there is not going to be jobs for a family income without both mom and dad working. In fact if your property is not paid off by October 2013, you will be leaving for a cheaper apartment. Gas prices will sail our of this world for those that can afford to even buy it.
Crude inventories have soared to a record high as demand for energy continues to decline. As I have written about previously, this is a clear sign that economic activity is slowing down.
Casino spending is usually a strong indicator of the overall health of the U.S. economy. That is why it is so noteworthy that casino spending is now back to levels that we have not seen since the last recession.
The impact of the sequester cuts is starting to kick in. According to the Congressional Budget Office, the sequester cuts will cost the U.S. economy about 750,000 jobs this year.
NYSE margin debt peaked right before the recession that began in 2002, it peaked right before the financial crisis of 2008, and it is peaking again.
China is posting 0% GDP growth today.
Ok, I am sorry for this bad news, but majority of you will say it’s bullshit. As when a co-worker always loved to talk abot the stock market and this was in Chico where I worked for many years. I never listen to others or even the news any longer since it’s all canned by this corrupt government. I look at the bottom lines of those business as well as watch th greed of people wanting more pay and this is what is also happening today. Prices are high as we all now know. But, the prices are not going to stop . I have seen many small business closed up by states because of back taxes. Just no money there and they go broke. October if not before is the last warning. After which i have no idea at this time. We owe more than Europe and Spain together and out unemployment is less than the 27% of those countries. But, really are they. Were done America! I thank all of you for ruining a once strong and fair country for placing this monkey back into office for the last four years!
John Lewis/Smokey.. mailto:firstname.lastname@example.org