US Economy - Mayor Bernero tells CNN that recession ‘ain’t over for a lot of our people’
Mayor Virgil Bernero was on CNN Wednesday morning responding to statements from Federal Reserve Chairman Ben Bernanke that the recession that has crippled our economy, tossed millions of Americans out of jobs and made the housing crisis worse, is over. Bernero told CNN’s John Roberts that while Bernanke might being seeing hopeful signs in the economy, it is not translating to Michigan. “Look, there’s a long way to go,” Bernero said. “But I would say it is premature at this point to say the recession is over. It ain’t over for a lot of our people. It’s not over for working people. It may be over for Wall Street but I will tell ya there is still a major disconnect between Wall Street and Main Street.”
Note EU-Digest
The disconnect between Wall Street and Main Street has never been greater. It is also risky and unrealistic to make assessments of the US future economic health and overall market performance based upon stocks in which Uncle Sam holds anywhere from a 40-80% equity stake. Trading these stocks is pure gambling, not investing, and every honest economic analyst will agree with that evaluation. While the industrial segment of the US economy appears to be stabilizing as a result of savings made by reducing the payrolls by millions of people, the consumer, which controls 70% of the US economy, remains severely stressed. Delinquencies and defaults continue to run at a record pace across almost every form of debt, including mortgages, and credit cards. Also looming in the background as another danger is the commercial real estate market, which is ready to collapse at any moment.
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