smithpaul's  Instablog

Send Message
  • Disconnect Between Stock Market And Economy Biggest I've Ever Seen 0 comments
    Mar 14, 2013 11:12 AM

    By Michael Lombardi, MBA for Profit Confidential

    By looking at the stock market's recent performance, one might think the U.S. economy has turned the corner and the worst is behind us. This is far from reality! The U.S. economy is fundamentally damaged, and since the financial crisis of 2008-2009, there really hasn't been any real economic growth.

    Even a novice economist will tell you: economic growth happens when general living conditions of citizens in a country improve; they are able to find jobs, they are able to maintain their standard of living, and they are able to spend and save.

    Unfortunately, I see the opposite of this when I look at the state of the U.S. economy. Instead of economic growth, I actually see misery!

    While politicians may rejoice over the recovery in the jobs market in the U.S. economy, it is still tormented. The job creation is unequal. During the financial crisis, 60% of the jobs lost were among the mid-wage earners. In the so-called "recovery," 58% of all jobs created were in lower-wage sectors-retail and restaurant workers, mostly.

    The year 2012 was the third year in a row that 40% of unemployed Americans were out of work for more than six months. (Source: National Employment Law Project, February 1, 2013.) In economic growth, there is equal job creation.

    The middle class in the U.S. economy is suffering severely-its cost of living is going up, while income levels stay the same. Just look at the price of gasoline. The U.S. Energy Information Administration (NYSEMKT:EIA) reported that Americans paid $3.71 per gallon of gasoline during the second week of March 2013. (Source: U.S. Energy Information Administration, March 11, 2013.) It wasn't too long ago when the same gallon used to cost less than $2.00!

    In January, disposable personal income (which is the money Americans have after expenses) decreased four percent in the U.S. economy. Yes, while the stock market makes new highs, real personal income … Read More

Back To smithpaul's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.