I’m confused and concerned. And I don’t mind admitting it.
The way I see it,
* Interest Rates are down, the lowest in history I’m told;
* Real Estate prices are down, back to about 2000-2001 levels;
* Unemployment is up, and no relief seems to be in sight;
* Home Sales are down, Foreclosures keep rolling along;
* Stock Market looks like an out of control squirrel;
* Bond Markets don’t look any more fun than Stocks;
* Taxes seem to be on the way up;
* Personal Income seems to be on the way down;
* Consumer Confidence – the term is an oxymoron.
I’m trying really hard to wrap my head around the current state of affairs, and it seems all I end up with is a giant sized headache. I’ve got adequate spare time (as clients are not beating down my door) so I’m trying to at least be busy learning what I can. I’m reading a bunch, and watching what I think might be the “better” financial network shows – but my head is spinning and may well explode. Seems like everyone has an opinion to voice, yet the more I read/look/listen the more it seems nobody has a clue.
Some of the “Talking Heads” say they feel interest rates may go lower. Others say continued low rates endanger the economy. Seems like every week the unemployment claims are higher, but the politicians tell us the economy is growing. Many say the housing price decline is behind us, others claim we have not yet found the bottom. Leading economists bicker about whether or not we are headed towards a “Double Dip” recession. I heard one alleged expert a few days back make the statement that home ownership was a liability instead of an asset (I suppose he would be right, if you compared to living somewhere rent free).
It is a Mid-Term Election year, and I hear many folks advocate voting out all incumbents. On the one hand I can agree, on the other it worries me because with many elected incumbents we (taxpayers) are already on the hook for their full retirement benefits for life regardless of how little time they are in the office. And then of course I look at the ballot, and feel that my alternate choices are essentially more of the same.
The National Debt looks to me to be absolutely out of control, and my leaders seem more focused on raising my taxes than on reducing spending. Social Security and Medicare seem to be on course to a train wreck of epic proportion, but no elected official has the courage to step up and propose intelligent solutions as it may end their political career. Some suggest privatization and the end of mandatory participation. But I wonder what welfare program will need be funded to cover those who grow old without having made sufficient private investments.
Apparently we need universal health care coverage for all Americans. I don’t know for sure, but I’m told our Congress members have good health insurance. Why can’t their group coverage policy be extended to include another 15 or 50 million folks? And on topic, how do they qualify for such generous retirement packages without having to hold their positions for more than an initial term? Most folks who still have a retirement program see theirs pegged to a sliding scale based on time in the job, usually with a minimum of 20 – 30 years.
I just don’t know . . . Which end is up? . . . What is right and what is wrong? . . . Which came first – the chicken or the egg?
So why am I surprised today to learn that 380 Million eggs have been recalled, but the chickens appear to be healthy?
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