This ain’t good. And yet nary a tremble from the market. I wonder why?
The great hope for business leaders and those of the political sort was that China would pull the world out of the greatest economic downturn in 3 generations. This has failed to happen and is failing more with each passing day. China isn’t going to save the day. China has been built on a good amount of economic magic and it needs a correction desperately. It likely has one on its hands though this still is not the official consensus.
The French economy is solidly mired in recession. It appears that President Francois Hollande’s government infused “growth” policies aren’t working too well.
The town of Woonsocket rises and falls every month with issuance of food stamps on the 1st. Not a good way to live, that is for sure.
Detroit used to be one of the “big big cities” of the United States. During the middle part of the 20th Century it was a capital of industry and economic vitality. New York, Chicago, LA, Philly, San Francisco, and Detroit. The heavy hitters. Now Detroit seems only to be taking the hits.
The consumer is feeling renewed stress. Gas prices are up. Food prices are up. But incomes are stagnant or down generally.
The end of the payroll tax cut is hitting those struggling to get by the most. As the world teeters on another leg down in the economy many probably feel that they are already on the down slope.
One would think with the economy on the rise (as we’ve been told that it is) this wouldn’t be the case. All that money printing by the Fed and an exec at Walmart is seeing the worst start to a month in his time with the company? Clearly this executive must have misplaced a decimal point or something. Things are going great.
Just a few weeks ago many leaders in Europe were talking about the end (or at least the beginning of the end) of the Eurozone crisis. It now appears that was wishful thinking at best. Now even mighty Germany is starting to suffer.
Take a look at this chart of economic recoveries in the United Kingdom over the past century. Ugly.