On the way in from the airport the other day, my cab driver talked with me about the economic situation in Barcelona. As you may know, Spain has the highest unemployment in the EU. My sense of his tone and demeanor is that no matter where one lives, when the economy is bad, everyone feels it. He simply told me that his taxi business was off because people had less money to spend. Now, ain’t that the truth the world around …
The above is a good segue into a question I received from a reader. In it, you will perceive a sense of disbelief in or a lack of knowledge about the current state of the U.S. economy. As well, there seems to be a political inference in the question, which leads me to say this – don’t just follow one source of news. Find the real news sources and then read as many as you can before arriving at any conclusion.
There some talk from the democrats about a surge in the US economy this year. Is this even possible at this point?
Of course it is possible. What makes you doubt that it is possible? What sources do you read that suggest it is not possible? If Europe pulls itself together and Iran does not explode, it is even probable. Consumer spending is up. Consumer confidence is up. People are buying big ticket items such as cars in numbers not seen for several years. In fact, check out all the latest indicators and you will see that overall, the month of January showed some consistency in it is numbers, particularly in the unemployment numbers. Remember, what I always say – when it comes to making money, leave your politics at the water’s edge.
- Just two years after it was rescued and reconstituted through bankruptcy and a government bailout, General Motors Co. cruised through 2011 to post the biggest profit in its history.
- The healthier job market that’s lifted the economy in recent months shows no signs of slowing. Applications for unemployment aid are near a four-year low, raising expectations of further hiring gains. The news Thursday helped catapult the Dow Jones industrial average to its highest close since May 2008.
- More jobs and tame inflation are giving consumers more buying power. Their higher spending could further boost growth and lower the unemployment rate for February for a sixth straight month.
I have just one more bone to rub today. As you all know, I have it in for the corrupt ratings agencies. It seems more and more folks are beginning to see it my way. I will say, the change is coming none too soon …
Bank stocks and the broader market are on the rise again today, in spite of a threatened downgrade by Moody’s on more than 100 global and European financials (EUFN). It’s just the latest evidence that the ratings agencies may be losing their credibility once and for all.
Trade in the day – Invest in your life …
