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Saturday, June 26, 2010

Economic Pulse

According to Reuters, the economic recovery has slowed. In spite of the fact that the US has had three consecutive quarters with a positive GDP, the concern is that growth is not sufficient to generate jobs and lower the roughly 10% unemployment rate.

We've been watching this for some time and the data confirms the theory that it is a jobless recovery, so far.

Allegedly people are there spending as consumer confidence is improving. Corporate profits are improving as well. The market is skittish but is still holding.

This article is stating that economists are not worried about a second recession just yet. Let's just say this is one of the optimistic articles because we've all read about dire scenarios. I don't know what to think about a second recession and the only remedy seems to be to still keep our eyes and ears close to the ground. Personally I'm still all about decreasing spending, eliminating debt, and making do with elegant simplicity. I just made up the elegant simplicity part because I'm looking for positive sentiment but you get the idea.

Reuters: Economic growth trimmed on consumer and business spending
Gross domestic product expanded at a 2.7 percent annual rate instead of the 3 percent pace reported last month...


While analysts see little threat of another recession they worry growth could prove too anemic to bring down a near 10 percent unemployment rate.


Despite the downward revision, growth in consumer spending, which normally accounts for about 70 percent of U.S. economic activity, was still double the 1.6 percent rate in the fourth quarter and the largest advance in three years.

3 comments:

Glynn Kalara said...

Right now there is little to invest in that will produce reliable returns as I see it. The Stock market is a Casino if u put your money there expecting reliable returns and u cannot afford to lose your princple u have no business being there. One place I see a good return right now is investing in Solar electric for your house or business or both. Subsidies exist and the hardware is very competitive right now and the technology is maturing to the pt. that I think it's a good place to put some $$ and get pretty good and reliable returns and a back up emergency power system for your heat and emerg. lighting systems. It's also something that is expandable over time and it's a possible DIY project as well.

Jim Sande said...

See I feel the market is good only if you have excellent and outstanding advice with a proven history, and you keep involved in it dramatically and constantly. You have to be ready to ditch and you have to be able to live with it long term. I know of companies that are paying 10 to 20% dividends right now. You can't find that anywhere else but the market.

I have to agree with you wholeheartedly on the solar. I would love to get into it and I want to DIY. I think in time its going to come down more just like computers did.

Glynn Kalara said...

My friend I'm starting to think we've put ourselves at great risk with all the fancy computers , cell phs. etc. Everything is now run by microchips and almost NONE of these systems are hardened against EMP attack ( Electro magnetic Pulse. Today if N. Korea or Iran or Pakistan or any other Nuclear equiped country with the capability to put a satellite in orbit wanted to destroy us they could with one Space burst over Kansas and we would be fried. Everything would stop dead every micro chip and the grid as well would go down permanently! Imagine waking up to NO power, no cars ( except pre-70's models) no food, no water ( unless u have your own well. 300 mil. people reduced to the Stone age in 2 seconds! That's how vulnerable we are right at this moment. In a week it would be a war on the streets as millions started look for water and food.