• Review of Economy Shows Slow Growth

    A review of the overall economy is revealing that the growth of the economy overall is not so swift. This is in direct contracts with many reports that have been coming out stating that the economy is indeed recovering from the doldrums of what many consider the last U.S. recession. However, with the recent findings in the, the growth that many think is happening rapidly may be happening much slower than expected.
    Continued High Unemployment
    It seems that with every positive jobs report that comes out there are two that are negative. While the numbers fluctuate as expected, the overall news remains bad. In fact, according to the Nation Labor Department, the jobless rate is holding steady at over 9%, which is anything but an indication of a strong or booming economy.
    Rough Real Estate Market
    Another indication of a tough and slow recovering economy according to the ISM review is the continued problems for the real estate market. While mortgage rates are at all time lows, which is good news, the rate at which people are losing their homes is more than enough to counteract that good.
    According to RealtyTrac Inc, there are more and more banks allowing short sales to go through than ever before. These short sales are banks actually accepting less than a property is worth so they can clear the properties off their books. So, while some are getting great deals on homes, the willingness of banks to lose money is just another example of a weak economy.
    Rising Gold Prices
    Gold has reached all time highs as far as prices go. While still not at all time highs when adjusted for inflation, the fact that gold is as high as it is shows that many investors are flocking to the precious metal as a safe haven and that doesn't not typically bode well for the dollar or the economy.
    Recent National Debt Downgrade
    The recent downgrade by S&P of America's debt from triple A to double A Plus is the most obvious sign that the American economy is struggling. This news did follow with the Chairman of the Federal Reserve, Ben Bernanke, stating that he would keep interest rates low for the next year or more. However, any further downgrades by S&P or any other credit rating organization could prove disastrous for America's economy.
    What it all Means for You
    A slow moving and slow to recover economy affects everyone; including you. While the findings of this latest review may not have shocked everyone, everyone still has to be wary as their financial futures depend on the state of the economy and how they react to it.


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