More Signs of a Slowing Economy ....

Sales of Durable Goods Drop 4.2% in March - The Economy Sputters On


    Before you ask - no, we are not one of those Republicans praying for an economic downturn so Mitt Romney will win the election in November.  We just read the numbers, and call it as it is.  And the numbers are telling us that the US Economy is once again stalling a bit.. Added to the rising new unemployment claims, this week we got news that orders for durable goods dropped in March by a solid 4.2%...


   OK, first question: what the hell are durable goods? Easy... They are big ticket items like cars, refridgerators, TV's and those I-Pads we love so much.  Stuff that costs a lot and lasts past dinnertime.  Basically, the big items that drive an economy forward, and show us that citizens have disposable income to spend. In short, the items that show us an economy is strong.  When it drops, that tells us otherwise - in real terms, not just what a politician says...


   America is telling us with their dollars what Barack Obama is afraid to - that we're slipping back into stagnation. That we're not very confident in the near future, and we need to keep whatever money we have in the bank, not in the driveway or living room.  And with good reason.  Big Business is going into 2013 like a car driving into a fog with the headlights off.  They have no idea what the climate is going to be like, but it's only on little things - you know, stuff like ObamaCare and Tax Structure. 


 Yeah, it's our contention that if DC were able to pass legislation for more than six months at a time, we'd be out of the recession in a much stronger manner... Why? Just look at it.  Many companies are making money, and sitting on pretty good amounts of cash, but they're not hiring.  Like we always say, businesses plan long term, but DC keeps going the short route, and it's crippling business' ability to plan - and therefore, to hire.  How can they, with a huge, incalculable expense like ObamaCare and Taxmageddon's estimated $494 Billion coming down the pike? 


    Nope, for right now, things do not look good for America's economy.  The political ramifications of it? We're not there yet.. Like we said before, April's unemployment numbers will be the standard that determines if Obama is re-elected.  However, this is not a good sign going into that crucial period.  We'll see if anything turns around, but a sharp drop like this in durable goods is not the way anyone wants it...


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