Sorry it's been so long, other business to attend to. What's going on with the market today? It's kind of funny, i haven't posted a article in some time. When I last did GM was the big thing in the news. What is the big headlines today? GM of course.
Well were not going to talk about them today. Today I'm going to tell you a little bit about the way the market is shaping up. If you have been keeping your eye on the news you probably noticed that the unemployment new claims has started to slow. The retail sales have had a little bit of a turn around. This recession seems to be slowing or has stalled. Why? Is it the ungodly amount of money the government is throwing around or are people starting to figure out that the news had nothing better to talk about and blew this recession out of proportion?
We should really ask ourselves how did we get in this recession. Is it the possibility that big business was driving themselves out of business by flooding the market with supply in hopes to drive smaller competitors out of business? Is it possible that we ourselves are to blame by spending beyond our means just because a bank was more than happy to keep giving us money? Maybe the government was to worried about party loyalty to worry about the state of the nations economy.
Well the answer is all of the above, and a whole lot more. These things though will help us see were the market is today. Regardless of what my opinion is on the governments blank checks they seem so happy to give out, it does have a trickle down effect. If it was me I would have let these automakers and financial institutions bite the bullet. It would have taken longer for the recession to turn around but the bale out money wouldn't have been coming out of everyones pockets.
The next thing is alot of businesses where building for comfort. What I mean by that is they put on more employees than were really needed to do the job. Now that businesses have started to trim the fat there bottom dollar is on the rise. When these companies started to trim the fat the unemployment numbers started to rise unemployed people have a hard time paying bills. This in turn ups the number of foreclosures. Which in turn digs into the pockets of the local government. Which in turn digs into the pockets of Washington. Which in turn digs into our pockets.
A big piece of the pie is the amount of house holds that were spending beyond there means. A house to big for their income and then they would tack on a few credit cards. What did they have? A life style they couldn't afford.
Now that we took a little look at what got us into the recession. We can see why we are coming out of it.The government did keep alot of people from being unemployed. These people to stay employed had to give up some of their wages.
Which helped their employer stay afloat. The fear of unemployment helped a nation look at their credit card spending. The government started to look at the credit card companies approval policy for new card applications. The credit card companies gave a brake to people who should have never have had a card in the first place.
I could go on and on and on and---Well you get the idea. This recession took years to develop and it will take years to fully recover. I'm just trying to say you can see light at the end of the tunnel.
Thursday, May 28, 2009
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