Have you heard the news? The stock market is absolutely soaring and according to the U.S. government and the Federal Reserve we are in the beginning stages of a robust economic recovery. Yippee! The S&P 500 is up 6.8 percent so far in 2011, and the stock market recently hit a two and a half year high. So shouldn't we all be celebrating? Well, if stock market performance was an accurate measure of economic health, then Zimbabwe would have had one of the healthiest economies on the entire globe during the last decade. But just like Zimbabwe's stock market was artificially pumped up with "funny money" that was rapidly being devalued, so is ours. All of the "quantitative easing" that the Federal Reserve has been doing is pumping plenty of money into the financial markets and is helping to inflate a false stock market bubble, but it is doing very little to alleviate the suffering of the U.S. middle class. In fact, when you take a closer look at the numbers you quickly find out that the suffering of the middle class is getting even worse.
According to Gallup, the unemployment rate is now over 10%. The number of Americans that have given up looking for work recently set a new all-time record. The number of mortgages in foreclosure tied a record high during the fourth quarter of 2010. Gas and food prices are rising rapidly. The number of Americans on food stamps continues to increase every single month.
Yes, right now the economic situation is not in free fall like it was a couple years ago. We should be thankful for that. Periods of relative stability such as we are enjoying now will be few and far between in the years ahead. This "bubble" of economic calm is a great opportunity that we should all be taking advantage of.
However, those that are hoping that this is an economic "turning point" and that things will soon be back to "normal" are going to be greatly disappointed. This is about as "normal" as things are going to be ever again.
Even during this time of relative economic stability, the U.S. middle class is still being ripped to shreds. If there are those among your family and friends that are somehow convinced that the U.S. economy is recovering nicely, you might want want to show them the following 18 very sobering facts....
GO HERE to read the 18 facts.
DelMarVa's Premier Source for News, Opinion, Analysis, and Human Interest Contact Publisher Joe Albero at alberobutzo@wmconnect.com or 410-430-5349
1 comment:
And that is not all. The "rich" are back to buying. According to "some index", I heard on the TV which sitting in the DMV today--I wasn't paying close enough attention to quote which one the info came from. High ticket items such as those bought by the 2% carrying most of the wealth in the US are once again moving off of store shelves or showroom floors. Apparently even the rich "paused" in their buying habits for a while. But now it is back to business as usual for them. I sure am glad the "down period" didn't last too long for them, as I contemplate what I want to go home and cook for dinner because I don't have enough money to get a "fast food" sandwich. Oh well, fast food isn't good for me any way, right?
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