Sunday, December 2, 2012

Economy not showing strength in spite of spin

We are now getting more data on the reality of our economy.  It is unfortunate but the data is not allowing us to paint a pretty picture.  You can be be assured that the media was spinning things to aid in an Obama re-election but check out the numbers. Here is a quote from Market Watch:

"Yet buried within the recent array of economic reports is sufficient evidence to point to a slower pace of U.S. growth"
If this is true we are in trouble.  A much slower pace will be much closer to another recession than we are to a robust recovery.  It is amazing that we have changed little with the Too Big To Fail Banks and with regulation to prevent another economic catastrophe.  Everyone is hoping and praying for the economy to pick up but there is little evidence that goes along with the media hyperbole regarding a recovery.  The article further states:

"Looking beyond the hurricane, the fourth quarter of 2012 has clearly gotten off to a slow start. Consumer spending, by far the biggest source of economic growth, fell in October for the first time in five months. And orders for expensive, long-lasting goods were flat in October."
Read more in full article HERE

Here is another good point made in a Market Watch article regarding how advanced warning of the Sandy should have helped stores before the end of the month.  It makes a plausible argument that has to be considered as we go forward toward the Fiscal Cliff. 
"That’s strange. When people know a big storm is coming, they usually hit the stores to stock up on groceries, hardware and other goods.  Some of that happened in the days leading up to Sandy. Batteries were low on supply, for example, and water bottles disappeared from store shelves."
"So Sandy should have boosted sales in October as well as decreasing them. If so, all that shopping appears to have had little impact on the national spending numbers."
See more on the cut in consumer spending with full article HERE
I am tired of hoping for a better economy and a recovery.  I would like to see some evidence of this soon so we can stop hearing the spin from everyone.  People are getting squeezed more and more.  Many more well qualified and well educated people are taking lower and lower paying jobs.  It is not necessarily because they want to live on less but their choices are shrinking.  We have seen the data for black Friday was not as expected as people are running down savings to survive.  Discretionary
spending still could take a hit this holiday season and easily through economy back into recession.  We have been sold a bill of good for a long time now.  It is about time we get some of the goods and not just the bill. 

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