SEARCH BLOG: ECONOMY
Three months ago, I wrote:
Now The New York Times writes:
Just some observations:
I'm still not sure what hope I am to have from all of this change. But don't worry; China will buy our debt and continue to subsidize us... or will they?
- Unemployment has not peaked and the "hunker down" mentality is increasing which will have a suppressing effect on the economy
- The economy has yet to feel the impact of General Motors and Chrysler declaring bankruptcy... and the bankruptcy court decisions that will ripple through the supplier base and have a suppressing effect on the economy
- Oil prices have gone up over $15 per barrel from their lows and that will have a suppressing effect on the economy
- The federal government's deficit spending increases will lead to either or both tax increases and higher inflation which will prompt the Federal Reserve to raise interest rates... all of which will have a suppressing effect on the economy
- Federal energy policies are being pushed by Energy and Commerce Chairman Henry Waxman that will dramatically increase the cost of energy and create burdens on domestic manufacturers which will have a suppressing effect on the economy
Halfway through the back-to-school shopping season, retail professionals are predicting the worst performance for stores in more than a decade, yet another sign that consumers are clinging to every dollar. Fears about the job market have resulted in sluggish customer traffic over the last few weeks, spurring the gloomy sales projections. Parents who do shop are aggressively trading down, informing status-conscious teenagers that notebooks from the dollar store or shirts from Costco will have to do this year.The stock market has been optimistic, but recovery may need more than hope and some pocket change. It looks as if the Federal government is the only source of spending these days. Oh, wait! Those are our dollars, aren't they?