WASHINGTON - The Senate voted 57-35 to pass the spending bill that includes budget increases for vast areas of the U.S. Government. The measure goes to President Obama for his signature. Ref. USAToday
U.S. In fiscal peril with $12.1 trillion debt
WASHINGTON - After $787 billion in stimulus spending and $700 billion in bank bailouts, 2010 is fast shaping up to be the year of the federal budget diet. Bipartisan support is growing in Congress for action to stabilize the nation's bulging debt, which is now $12.1 trillion. Influential experts from former Federal Reserve Board chairman Alan Greenspan to former comptroller general David Walker have joined the cause. Ref. Source 7
I guess I am a bit shocked that there werent further reductions foreseen by economists. December through February are typically horrible months for the manufacturing sector, if it caters the least bit to retail purchases. January and February are really bad for retail in general. Additionally, companies look at the end of the year towards next year for budgeting and layoffs for the next year happen at the end of the year. If everything stays on course, then you will see things pick up around March.
This is going to be a really long recovery and if we want to call them double dip recessions, fine. However, if you think about the loan types that people got that overstretched themselves...it will take about 4 years beyond the time that the last of the bad loans were granted that we truly reach the end of defaulting on loans, which in turn fail banks, which in turn we try to give Chinese money to prop up. The only thing that can save us would be a rapid increase in realestate prices, but that would dry up some of the spending that is helping us now.
Honestly, I can easily see another dip at the beginning of this year with the bottom hitting us from March - June in unemployment and a very slow return that will take at minimum about 5 years.
Financial Level: Financial Consultant / Business Participation: 115 11.5%
I hope the US can recover because the way the global economy is what happens in one place affects everywhere else especially when it comes to the US and the US dollar. This will only push for more calls of a global currency.
Financial Level: Millionaire / Business Participation: 454 45.4%
Worst Is Over?
"The worst of the storm has passed" for the economy, President Obama says in State of the Union address. Ref. CNN
The Economy Grew 5.7 Percent in the 4th Quarter, Fastest Pace Since 2003 [8:58 a.m. ET] Ref. ABC News
Forbes: Crisis Hits Only Low Income Earners
The current global financial and economic crisis once again confirms the fact that during economic upheavals the rich get richer and the poor become even more destitute. - As of late 2009, the number of billionaires soared from 793 to 1,011 and their total fortunes from $2.4 trillion to $3.6 trillion. Ref. Source 9