economy 2013

The Economy Is Recovering - The Business Financial Newspapers Stated

 By Lance winslow

 Not long ago, I was reading several business newspapers and I had them stacked up. I also had a few magazines, all about business.

Each one of them noted that the stock market was at an all-time high, that earnings season was looking good for major corporations, and that we would continually see new highs without a pullback in the stock market. This was long about the end of April 2013. 

We all know what came next (hindsight is always 20/20), but somehow folks were buying into that latest bubble, and forgetting about previous toils and troubles. Okay so let's talk shall we?

The Wall Street Journal had an interesting op Ed piece published on April 29, 2013 titled; "Uncertainty Is the Enemy of Recovery," by Bill McNabb. The article noted; "At Vanguard, we estimate that policy uncertainty has created eight $261 billion drag on the US economy." Well, that just about says it all.
We were told by the Federal Reserve, the US treasury, and many economists at some very fine university institutions that our GDP growth in 2013 would be between 3.2 and 3.5%.

The reality is that after the first quarter of 2013 we were barely pushing 2.5% and that is even including all of the tricks of the trade that economists use and federal governments use in their political propaganda and posturing to prove that everything is wonderful. Things are not wonderful.
That article also noted that about $800 per person, that's every man woman and child in our country, is the amount of drag we are dealing with due to uncertainty and low confidence from consumers, small business, and even corporations.

Not only might one say that the stock market is at an all-time high, but the earning estimates and guidance are at an all-time low, so even if corporations are beating their estimates, the estimates have been downplayed substantially - this at a time when corporations have over $1 trillion in retained earnings and cash on their books that they are not spending. Also, many corporations are selling corporate bonds and taking on more debt at the top of the market. Yes, from a CFOs standpoint this is a very wise play, but it's not going to play out well for everyone else when that bubble bursts, and things come back into reality.

Whose fault is all this? I would submit to you that it is the fault of the current socialist regime that is running our economic policies here at home.
Their game has run its course, and they're trying to keep that balloon inflated for as long as possible, each time claiming that more jobs are being produced, and things are recovering.
The reality is our trade deficit is expanding, the money they are printing isn't staying here, and they are spending us into oblivion. Their policies are not working, they can't work, because socialism doesn't work. Catch a clue. Please consider all this and think on it.