By Reginald Kaigler (DEMCAD)
The Dow Jones is over 13,000 and the talking heads on television are declaring the U.S. economy to in a recovery. But over 46 million Americans are still depending on food stamps, the weekly jobless claims are starting to decline and unemployment is still stubbornly high despite the Labor Department's attempts to official push millions of unemployed into the non-labor force category. And recently, the factory orders fell off of a cliff in March.
The GDP numbers were obviously a big disappointment. The first quarter of 2012 had an unusally warm season, which made individuals and companies buy specialty items much earlier than usual. This should have really boasted the numbers, but all the labor department could come up with is an anemic 2.2%. Which means there's going to be significantly less growth in the second quarter. Essentially, the purchases that are usually made in the second quarter have already been made for the first.
Factory orders Dropped 1.5% in March
46 Million Americans on Food Stamps
So it's refreshing to see a clip of someone on CNBC telling it like it is. Boston Properties CEO Mort Zuckerman pulled no punches with his analysis.
"We have the most stimulative fiscal and monetary policy in the history of this country and here we are three years into the recession and it's not ended. I think we may be heading for an even weaker economy this year than people expect."
He was right about the European economy, too. I especially enjoyed his analogy about the man who jumped out of a 25 story build and yelled, "Nothing's happened yet!"
Right now, I'm focusing on creating secondary income. I want to be as versatile as possible, because I think things are going to get very interesting this year. Don't be surprised when the economy gets worse.