Are any of you watching what is happening to housing right now? As reported by Forbes.com’s Eric Carlyle Existing Home Sales Fall 5.1% In January 2014, To Lowest Level Since July 2012 and yet, our S&P still gains ground…..hhhmmm…..
As reported by Lucia Mutikani with Reuters, Housing Starts, Permits Tumble; Mortgage Applications Fall and yet, our S&P still gains ground….hhmm….
As reported by Greg Robb of MarketWatch.com, Philly Fed Manufacturing Weakens in February, index dropped sharply….to a negative 6.3 from a positive 9.4 in January and, yet our S&P still gains ground…hhmm…
As reported by Emily Fox at CNN Money, even consumers are holding back as her article headline reads, Wal-Mart Wars of Soft Start to Year and, yet our S&P still gains ground…hhmm…
Some anaylsis say the weather and cold temps are to blame however, sure, the cold weather may not have made things better but, if our country is so weak, it can’t even take a colder than “normal” (Whatever that is) winter…then I am left to ask, just where are we fiscally…really? Better yet, how is it the S&P can make modest gains in this atmosphere of negative reports?
Oh…I almost forgot, let’s not forget about the last two job reports…..can we say ouch! At some point, the market can’t sustain, especially now with the fed pulling back on Quantitative Easing this year. I am sounding the alarm once again and I really do believe I am correct, this is the year of the “double dip” recession. I say “double dip” in quotes because, I never believed we ever came out of a recession in the first place but, let’s go with the popular misconception we did, hence the quotations around the word, “double dip”.
More now than ever before, since 2007, if we stumble, we will take a much larger hit than any of us that didn’t live through the Great Depression will experience. Why do I say that well, it’s simple, our economy isn’t starting off from a place of strength, as I outlined above. Back in 2006, when the real estate bubble burst, our economy was booming so, the hit we took was bad, even worse than the Great Depression but, most Americans in the Middle and Upper class didn’t make many significant changes to their daily lives whereas the lower class was obliterated. This time around, our economy is not in a position to take another hit like that and if it does, you will see middle class America take the brunt and once again, the lower class will receive the equivalent to a economic nuke being dropped on their heads.
Now, let’s add in expected increases in health care cost due to our Presidents fundamental transformation of our country, increased taxes as we don’t have an in power opposition party to the liberal / progressive agenda being pushed in Washington DC and well, 2014 will be a year we won’t forget, that is for sure.
Comments
Some economists are saying the stock market will CRASH bigtime in Aprl. But, I do don't knolw. All I do know is that the stock market is inflated by the QE money.
Jesse,
There isn't a day that goes by without me thinking the same things as you. I hear a jobs report come out and the newscasters will say that investors shrugged off the bad news and say that our economy is growing. Christopher Thornberg said that we can but this "Great Recession" behind us, this week. In the world that I live in, I feel that I have to work much harder to make a buck and many of the middle class people that I talk to are having a hard time making a living.
I also feel that something is in store for us in 2014 but of course I'm not a Economist and this is just my opinion.
Jesus - If you wrote the piece, and I assume you did, you are repeating what I have been saying for 2 years.
S&P and the DOW- the stock market as a whole - is not an indicator of the overall economic future. It is a manipulated crap shoot with the biggies - hedge funds, retirement account handlers, etc - playing games with other people's money. What speculation there is, is only expected rise and fall of stock prices within a few days or expected dividends shortly.
Wife and I are prepared - I think - for really bad economic times: 300 chickens, large garden, plenty of ammo, etc.
Plus being in rural real estate, I know of many wilderness properties with out of state owners, creeks, etc. where we could squat and set up a camper if things got dangerous close to the city.
Damn, I hope you and I are wrong in our expectations.
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