The stock market is stagnant and drifting lower. There is no reason to believe it will break to the upside and every reason to believe we are poised on the brink of free fall. Over the last six months, the market has charted a classic double top. There ain't no triple tops, folks. The price of bonds is high, relative to the paltry interest rates available but long term outlook for bonds relative to inflation is poor. The government continues to force interest rates even lower, in the hopes of pushing money into the moribund equity markets. Real estate prices decrease as foreclosures skyrocket. There is not a single segment of the US economy showing any signs of growth. The value of the dollar, relative to other major world currencies is eroding as the government continues to borrow money like there is no tomorrow and the trade deficit skyrockets. Other major economies, around the world, show signs they are decoupling from that of the US. Energy and food prices are up, way up. Americans are deeper in debt than ever before, way deeper.
The government continues to tell us that we have virtually full employment. The government continues to tell us that there will be no recession. Yeah, tell me that soft landing bed time story again, Daddy.
How many of those jobs out there, that we are working at, are real jobs, long term jobs, that pay a living wage, with benefits, enough to keep your family safe and healthy? If the government is fudging on the inflation rate by several percent and the economy grows a lot less than that, is the economy really expanding? If it costs you a hundred and fifty dollars more in gas a month to get to work, is that a pay cut? Do you belong to a country club? Did you take a nice vacation this year? Did you get your wife a big diamond ring for your twenty-fifth wedding anniversary? Are you saving money, faster than the home equity and credit card debt are piling up? Are you paying off all your utility, mortgage, tax bills and car payments without having to borrow more? If everyone in your family lost their jobs tomorrow, how long til you're living on the street?
No comments:
Post a Comment