We are in a recession! The recession is not caused by just gas prices, have you seen the increases in beef, eggs, cars, used cars, and hundreds of other items? Many of these items have gone up much more than gas. People don’t realize that when oil production was slashed last year, this causing the thousands of items that are made from oil to go up in price. Look at diesel, everything that uses 18 wheelers for transport has to go up. How about salary increases, when you pay a burger flipper $15 hr, you will see everything on the menu increase in price, which means, the buying power when wages were $8 hr are the same when salaries increase to $15 hr; businesses and corporations will increase prices to compensate for the increase, so basically nobody is better off but the people in fixed incomes are the 1’s to get hurt.
As for the market, big deal the market was up 10% last month, Nasdaq is still down 20%, Dow 10%. These have been bear rallies, we are nowhere close to being done with declines.
People need to see what’s going on behind the scenes to see why things are much worse. Have you seen car loan delinquencies? 2008 all over again. Banks are loaning 160% of car value and people are taking advantage of it with the average car payment around $720 a month. Now with everything much more expensive, people can’t afford it and they stopped making car payments.
As for employment, you can’t keep looking in the rear view mirror, look at companies now forcing layoffs. When we get into a recession, companies stop hiring and start layoffs which is happening now.
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