Below are the signs that the United States Economy is meeting some headwinds.
-Housing Problem is getting worse, all time high foreclosures
-Small business are not confident the economy is getting better
-Q1 GDP estimates have been getting revised downward, it started at 4% but has been revised down a few times already
-Manufacturing of durable goods have been weak
-Las Vegas revenue has taken a sharp drop
-High oil prices is pushing economy to collapse, affects everything – raw material cost
-Stock markets are slowly treading sideways…stalling
-Inflation is eroding purchasing power cheap U.S dollar
- U.S Government running out of money to run government social services…both Federal & State level
- Cut backs in government spending in the U.K, triggers consumers to spend much less. This effect is coming to the United States.
All of the above can all go away for another 6 months, if the Federal Reserve prints another 600 billion dollars to inject into U.S economy and cause the stock market to take off higher (illusion of wealth), however this strategy is just going to prolong (kick the can down the road) the inevitable double dip recession / depression.
Next week the U.S Government will be raising the nations debt ceiling.
Other side effects of printing of course is further devaluation of the U.S dollar and further inflation. The United States might go the way of Weimar Germany like in the 1921 – 1923 or Zimbabwe.
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Leading economist in the US market claims that the US stock market has the potential to rise over 50% in the next couple of years. He recommends buying options, or to be fully invested in stocks but buy protection through out of the money put options, for example S&P puts.