The latest economic reports from Wall Street today are forecasting an all-too-familiar outlook: the economy is sucking, and it looks like a long road home.
Current market values of stocks are just starting to slow their descent into the abyss, and shareholders are still trying to catch their breath from the shock of their 401K losses. It’s hit hard and wide. Pretty much no one is safe from this credit crisis (or crunch as the Brits call it). Jobless rates in the US and maybe even the world are at an all-time high. With no jobs to offer potential workers, the economy cannot look to be revitalized anytime soon. So what’s with the government bailouts and all the taxpayer money flowing freely? Where is it going and how is it helping out? No one seems to be reaping in the benefits yet, save the financial firms who don’t seem to grasp the concept of “bad economy”. In fact, today’s article from ‘Fast Money’ says this: “Nothing’s Working”.
Now that we know nothing is working, the future should only look hopeful, as the next logical step is to say that something will work. Tech seems to be doing better than most other industries at the moment, since they hit their boom in the late 90’s and early 2000’s. People say they’re cutting back on expenses and unnecessary luxuries, but really, they can still afford things like the latest iPhones or newest TVs or latest MP3 players.
What’s not doing so good are the retail fashion and hospitality industries. Consumerism has actually dropped a considerable amount for them, as the superficiality of consumerism becomes a hot topic amongst all classes. No one wants to be seen with the latest designer tops from Milan or the most expensive handbags from Paris. No one wants to be seen dropping $50 on a three-course meal at some exclusive restaurant in the East End.
I’m not going to sit here and speculate or propose a solution to this crisis. I wouldn’t even know where to begin. Heck, I don’t even know if you can have a single solution to this. I think it will be a whole myriad of tiny steps and new policies that will gradually steer the nation back in the right direction. At this point in time, we need more positivists than ever. Warren Buffet is an outstanding example of this, and if we could just have a little less negative criticism coming from American policymakers and a little bit more positive action, we could go a long way quick.
Here’s a fast recap:
“The Dow Jones Industrial Average slid 223.32, or 2.63%, to 8,280.24, while the S&P 500 lost 26.91, or 2.91%, to 896.42. The Nasdaq fell 49.20, or 2.67%, to 1,796.52.”
At least Ford is posting declining declines in car sales. Time to celebrate?
Take a look at The Street for more insight.