Economic and Stock Market Recovery, Maybe The Emperor Has No Clothes

Stock-Markets / Stock Markets 2010
Mar 18, 2010 - 11:38 AM

By: Charles_Maley

It seems the general consensus is we are in a full blown recovery. There is little doubt that the worse of this crisis is over. I sure hope that is true, but when I see complacency in the financial markets such as I see today, so soon behind a meltdown, I have concern.

The politicians on the hill and the talking heads on the T.V. can say what they want, but there are few recoveries without the participation of the consumer. Economic stability depends on consumer confidence, which results in consumer spending, not through a barrage of Government spending.

Patrice Hill, from The Washington Times, made an astute observation that I think few realize. Just how damaged was household income without Government help? How bad of shape is the regular Joe actually in?

According to her research, “Without record levels of welfare, unemployment and other government benefits as well as tax cuts last year, the income of U.S. households would have plunged by an astonishing $723 billion — more than four times the record $167 billion drop reported last month by the Commerce Department.

Moreover, for the first time since the Great Depression, Americans took more aid from the government than they paid in taxes. The figures show the devastating results of the massive job losses last year and indicate that the economic recovery that began last summer is tenuous and has a long way to go before many Americans resume life as normal.â€