“Job openings fell to a five-month low in April and showed their sharpest percentage decline in about seven and a half years, according to a government report Tuesday that helped confirm a slowdown in the labor market.” (Source: cnbc)

Okay, What Does This Mean?

It’s confirmation what all of us seem to know (except for the folks in Washington, DC): our economy is doing poorly. So terribly, that recession is definitely a possibility, if it’s not already here.

The Federal Reserve is paying attention.

In fact, June 19 the markets were up in the hopes that the Fed will step in and take action.

What “action” can the Fed take? Well, QE3 comes to mind. Wall Street has been hoping for some time that the Fed will pump a lot more money into the system. They know that every bit of increase in market value since 2008 has come directly from more money being pumped into the economy. In real dollars, the market hasn’t earned a thing!

But It Fools The Public

So Wall Street guys (and gals) love the thought of anything that will help market values.

Meanwhile, the Fed is doing all it can to avoid adding more money into the economy. Their concern is that all of this money will eventually have to come back out or inflation will get ugly and taking money out from the economy is a great deal harder than putting it in.

The Fed is stuck between the proverbial rock and a hard place. Crummy economy on one side, out of control inflation on the other; it’s a balancing act that they don’t want. But it’s not disappearing.

The Government has put our economy at the brink. Their spending habits have led us to a point where extremely tough decisions will have to be made. Are we going to cut back on the promises of Social Security and Medicare? Just how much will we raise taxes? What programs could we cut or eliminate?

What Can We Expect?

We’ve been reading about austerity in Europe. Well, you can expect it to come our way soon and you can expect our economy to continue to suffer throughout the process.
We’ve done the equivalent of charging up our credit cards to the max. We need some time to collectively pay down some bills.

Matt Golab

Matt is an Investment Advisor Representative as well as the Chief Advisor of Aaron Matthews Financial Resources headquartered in Elk Grove, CA.
Just click right here to learn more about Matt Golab!

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