One thing you can’t fight against is the little demand for goods in the U.S. The lack of demand for goods is overwhelming.
No matter, how advertisers manipulate and coerce people to try spending money, it just isn’t happening because well there is a real unemployment rate of roughly 21% in America…that is slightly over 60,000,000 people out of work and over 46 million people on food stamps.
With so many people out of work, of course demand is going down for capital goods to make products and widgets. The tracking of capital goods however is in line with the stock market, the S&P 500…so as the demand of goods collapse, so will the stock market (look at chart).
But hold on this year might be different because it is an election year and the Federal Reserve will print money like crazy and manipulate the stock market as they have been the last 5 years.
However, you never know maybe the Fed has ran out of bullets.
by Das Brain
Bookmark at:StumbleUpon | Digg | Del.icio.us | Dzone | Newsvine | Spurl | Simpy | Furl | Reddit | Yahoo! MyWeb
