Good question and deserves a good answer. back in the day, when I was in college taking that econ 101, the bane of most average human being, I was amazed at how the "experts" could read a coming disaster.
Alright, let us begin. Gold prices are up, oil futures are up, housing is collapsing faster than a bridge in Minneapolis, food prices up, consumer spending stagnant, income stagnant, so why no recession? all these indicators are poor, at best, but yet the economy is strong. Why?
All economic indicators are used to fuel investments. Investors are optimistic at this time, they are gambling that say 12 months from now all will be good. The government does it's part to stabilize the economy by cutting prime rates and bailing out disintegrating sectors. This is what the investors need to keep pumping money into the system and as long as they do that this economy will appear to be strong and stable.
But on the down side, NO ONE has asked John P. Public what condition the economy is in. There is the true test of how healthy the economy is; if John cannot buy enough food for his family, then this "free market" system is not working.
Nothing I see that pertains to the average Joe tells me this is a healthy environment. The economy is failing, but as long as the wealthy gamble on the lives of normal Americans, there will be no change. Sad that the worker and his family must pay a terrible price for the accumulation of wealth by a few.
CHUQ
04 Oct 07
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