Mike Swanson's picture

Are We In a Big Economic Recovery? - Mike Swanson (05/16/09)

The government has pretty much stopped the banking crisis by making sure that the big banks won't go bankrupt. It's going to cost taxpayers billions and bust the government's budget deficit, but the banks have been saved.

The stock market has rallied since March as a result. There are signs of so called "green shoots" in the economy.

The big debate going on is whether or not this is the start of an economic recovery or not.

As James Kwak writes on his blog, "what happens next, however, is another question. Will the economy return to long-term trend growth of about 2.5-3.0% per year? Or will we muddle along with a “jobless recovery” where economic growth is barely sufficient to keep pace with population growth? The important thing to remember is that trend growth is just a long-term statistical average; there’s no magical mechanism that generates growth all by itself. I’ve said before that a lot of 2010 forecasts look like reversion to the mean, which is a valid way of forecasting, say, the expected height of the offspring of two tall people, but not necessarily economic growth."

As always we will stick with the stock trading basics that have worked for us over the past ten years. Get my stock trading guide today. It's free and will put you on the path to making money no matter what the stock market does.



[Most Recent Gold Stock Quotes from www.kitco.com]

Power Investor Login

Who's online

There are currently 1276 users and 481 guests online.