If The US Economy Is Out Of The Woods, Then I'm The Queen Of England

Almost everywhere I look in the mainstream financial media, I see story after story celebrating the end of the worst U.S. recession since the 1930's AND start of an all-out recovery to a brighter, smarter-for-the-pain bull market. "The grimmest days are now behind us," begins a November 5 BBC report. "All that talk of a return to the thirties now seems fanciful."

Yet let's take a look at some of the actual data. At the very BASIC level, these comparisons between late 2007 and today are quite eye-opening:

2007: 2009:

Unemployment rate: 4.6% : Unemployment rate: 10.2%

Fed's Lending Rate: 5.25% : Fed's Lending Rate: 0%

Year-over-Year Bank Credit: + 10% : Year-over-Year Bank Credit: - 6.8%

Consumer Spending: + 2% pace : Consumer Spending: .5% decline in September

ISM Service Sector Index: 55.8 (Sept.) : ISM Service Sector Index: 51.5 (Sept.)

U.S. retail sales report strong growth : U.S. retail sales: 1.5% decline in Sept.

Year-to-date auto sales: 3% decline : Auto sales: 10.4% decline in Sept.

Federal Bailout Balance: $0 : Bailout Balance: $13 Trillion, and counting

(P.S. On August 31, 2007, Federal Reserve Chairman Ben Bernanke explained: "It's not the responsibility of the Federal Reserve -- nor would it be appropriate -- to protect lenders and investors from consequences of their financial decisions.")

GDP growth in third quarter: 4.9% GDP growth in third quarter: 3.2%

(All Signs Point In One Direction: The November 2009 Financial Forecast Service reveals how every major sector is in position for a historic economic event. Get the complete story today, risk-free.)

Source here

Posted by Mr Thx Sunday, November 8, 2009