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Darkess Day of the Year, but Economically Getting Brighter

Dec 21, 2013 |
It’s the shortest day of the year today, and as we look ahead to 2014 there are reasons for a more positive outlook about the economy in America. There are indication that politically the ... Read more

Dysfunctional Relationship between Corporations and Governments

Aug 5, 2013 |
The Dysfunctional Relationship between Corporations and Governments Corporate lobbyists pressure governments to keep interest rates low. This means it is less attractive to keep money in ... Read more

50 Year Chart of Stocks, Gold and Treasuries

Jun 26, 2013 |
When it comes to what has been the most consistent and dependable investment for the long run, the clear answer is a diversified stock portolio, which virtually anyone can invest in assuming they have ... Read more

Countries Debt to GDP Ratio Spotlight Japan

May 30, 2013 |
As we look at the various nations that have high debt to gdp ratios, the one that can't be easily overlooked is Japan. As you can see in the chart below, Japan has a ratio of about 230%. Japan has ... Read more

Urban Gardner in South Central LA

May 22, 2013 |
Ron Finley has done some amazing things to help change the way people think about food in South Central LA, and area that has been mired by poverty and gangs in the past. As he puts it, growing your ... Read more

Latest links

Darkess Day of the Year, but Economically Getting Brighter

Dec 21, 2013 |
It’s the shortest day of the year today, and as we look ahead to 2014 there are reasons for a more positive outlook about the economy in America. There are indication that politically the ... Read more

Dysfunctional Relationship between Corporations and Governments

Aug 5, 2013 |
The Dysfunctional Relationship between Corporations and Governments Corporate lobbyists pressure governments to keep interest rates low. This means it is less attractive to keep money in ... Read more

50 Year Chart of Stocks, Gold and Treasuries

Jun 26, 2013 |
When it comes to what has been the most consistent and dependable investment for the long run, the clear answer is a diversified stock portolio, which virtually anyone can invest in assuming they have ... Read more

Countries Debt to GDP Ratio Spotlight Japan

May 30, 2013 |
As we look at the various nations that have high debt to gdp ratios, the one that can't be easily overlooked is Japan. As you can see in the chart below, Japan has a ratio of about 230%. Japan has ... Read more

Urban Gardner in South Central LA

May 22, 2013 |
Ron Finley has done some amazing things to help change the way people think about food in South Central LA, and area that has been mired by poverty and gangs in the past. As he puts it, growing your ... Read more

Latest links

Darkess Day of the Year, but Economically Getting Brighter

Dec 21, 2013 |
It’s the shortest day of the year today, and as we look ahead to 2014 there are reasons for a more positive outlook about the economy in America. There are indication that politically the ... Read more

Dysfunctional Relationship between Corporations and Governments

Aug 5, 2013 |
The Dysfunctional Relationship between Corporations and Governments Corporate lobbyists pressure governments to keep interest rates low. This means it is less attractive to keep money in ... Read more

50 Year Chart of Stocks, Gold and Treasuries

Jun 26, 2013 |
When it comes to what has been the most consistent and dependable investment for the long run, the clear answer is a diversified stock portolio, which virtually anyone can invest in assuming they have ... Read more

Countries Debt to GDP Ratio Spotlight Japan

May 30, 2013 |
As we look at the various nations that have high debt to gdp ratios, the one that can't be easily overlooked is Japan. As you can see in the chart below, Japan has a ratio of about 230%. Japan has ... Read more

Urban Gardner in South Central LA

May 22, 2013 |
Ron Finley has done some amazing things to help change the way people think about food in South Central LA, and area that has been mired by poverty and gangs in the past. As he puts it, growing your ... Read more

Reasons the Economy will not go into Recession Soon

There are always people predicting we are heading into a recession or depression. I saw one article claiming Warren Buffet was ditching all his American stocks, as was John Paulson. One thing to bear in mind is confidence is one of the main drivers of the economy. When people are confident they can spend money, the money flows and circulates through the economy.

Here are a few reasons to be positive:

1. House prices keeping going up and in many markets there is a need for more houses and that means more jobs.

2. The unemployment rate keeps falling. The participation rate has fallen too, but new jobs being created is rising now. With more people working, that means more people to spend money.

3. Gold has fallen. This has been a traditional safe haven when people fear the doomsday economic scenario. This could be a sign people are switching their holdings to stocks and bonds, a sign of confidence in the economy.

4. Austerity as a prescription to fix the economy seems to be losing steam both in the US and in Europe. That means we may see increasing investment in infrastructure which also may create more jobs and more commerce. 

There are still plenty of forces at play that can bring about change, but there are homes to be built and jobs being created, so I have difficulty believing a big recession is imminent. More likely we will see continuing strenght.

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