The Fed ended a two day meeting yesterday. This is the first time I have officially read that Europe's fiscal problems are having a direct impact on America's economic fruition. According to the Fed, the US is being adversely affected by Europe's economic problems.
As a result the tone of this morning financial articles is dreary. We are back to pessimism about the recovery yet there is also a sense that a second recession might not be inevitable or at least not just yet.
Personally I now think that a milder recession is the middle position between the extreme naysayers who warn of a catastrophic meltdown and the optimists who predict better growth. These things are hard to predict as we know. So its important to still keep our ears to the ground.
Personally, I also think that its smart to live simply and live small. Its not the time for living large as they say. Cut out debt, reduce spending, do it yourself, ride the bike, don't take on burdensome loans if possible, and eat organic. Threw that eat organic one in there for fun. Hey...
CNN: Stocks seen pulling back
Central bank policymakers said Wednesday that problems in Europe have slowed the pace of the U.S. recovery over the past two months.
While the Fed said it didn't expect the U.S. economy to fall back into recession, it warned that financial conditions have become less supportive for growth and that the recovery is "likely to be moderate for a time."
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