Economic Forecast Brightens a Bit for 2010 ...

"Now Helping Number 22,457,245 ...... Number 22,457,245 ???"

We always try to give you the straight dope here at SC6.... Why? Because we're not smart enough to lie well.... Anyway, we're not here to scare the crap out of you, and tell you the end is near because of Obama. Nor will we try to paint a rosier picture than it actually is. The facts are we are in very mixed economic times....

As far as macroeconomic terms aka, Big Business, they are not ready to make a move forward yet. Christmas is now upon us, and the signs are there all over: I went to get a Christmas tree with Joe, and we had to go to another Costco 20 miles away to get the tree he wanted. Because they were all sold out? NOPE. Because they didn't stock any there. Businesses of all types are still keeping inventories low, for fear of being stuck with unselllable crap after the holidays. Since the inventories are low, there is no need to produce more, and hence, no need to hire additonal workers in production - at least not yet.

But, eventually, they will need to make more stuff, and the news is that 2010 is the year that the turnaround will begin - slightly. No, 2010 is not going to be a banner year by any means, but it should be the end of the bleeding that started nearly 2 years ago. January is when companies forecast the year, and then begin hiring for that year, so word is that by March, a very small and slow job improvemet will begin - and the Stimulus will have very little to do with it.





From the microeconomic standpoint, aka households, there are some encouraging signs that Americans have FINALLY realized what hell credit cards can get you into. According to the lending companies, customers are paying back their cards faster - and just as importantly - on time, that at any rate in recent memory. Combine that with the nearly 500% increase in the rate of saving (all the way to a 'whopping' 4.5%), and it is a good sign that Middle Americans are getting their shit together financially. THAT is what will pull us out of the economic hole we're in, not more borrowing or spending. There's a lot to be said for living frugally and sensibly.........


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