The recent discussions on how the economy is recovering have caused many to be joyful though many of them are unaware of certain things. The actual improvement of the economy is controversial at best and a lot of financial experts are claiming that the US is heading towards a downfall that the US government does not seem to recognize. The various solutions taken such as quantitative easing have had little or no effect. Of course, for those nations in which the government had not taken efforts at all to remedy the situation, the problems are much worse.
There is still a lot of resentment by the American people for the taxpayer funded bailouts of companies that were deemed too big to fail. In a free market no company should have this designation. If the government and the businesses that were threatened allowed the markets to correct then the devastation may not have been so widespread. The housing markets are another area of concern. Mortgage issuers that used robo signers and illegal methods have not been brought to account, and this whole mess is being pushed under the rug as well.
Although the unemployment rates of the country have gone below the 8% margin, the growth in terms of the consumer spending area is still at a crawl. Financial experts have revealed that the ideal growth rate ought to be at 4% to 5% yet the current rates are more at a low 2%. This cannot continue any longer. Otherwise, the economic slowdown would prolong for an extended period of time.
Poll results have indicated that the US citizens are beginning to lose faith in their government and its associated financial systems. Indeed, the White House seems to be putting the blame on the rich and wealthy whilst any efforts to reduce the spending budget of the government are rejected forcefully. Without any real solutions on the reduction of the biggest money drains, the situation will only continue to worsen.
It is impossible for most individuals to tell whether or not a true recovery is happening. The data and statistics seem to be all over the place, and previous numbers are constantly being revised after they are released. That has led to some complaints about data manipulation by the current administration in order to downplay their lack of progress in this area. Others contend that this is simply the result of using an approximate estimate, and then making changes as the actual information trickles in. Whether or not this practice is seen as deceptive depends on the individual.
There is still a lot of resentment by the American people for the taxpayer funded bailouts of companies that were deemed too big to fail. In a free market no company should have this designation. If the government and the businesses that were threatened allowed the markets to correct then the devastation may not have been so widespread. The housing markets are another area of concern. Mortgage issuers that used robo signers and illegal methods have not been brought to account, and this whole mess is being pushed under the rug as well.
Although the unemployment rates of the country have gone below the 8% margin, the growth in terms of the consumer spending area is still at a crawl. Financial experts have revealed that the ideal growth rate ought to be at 4% to 5% yet the current rates are more at a low 2%. This cannot continue any longer. Otherwise, the economic slowdown would prolong for an extended period of time.
Poll results have indicated that the US citizens are beginning to lose faith in their government and its associated financial systems. Indeed, the White House seems to be putting the blame on the rich and wealthy whilst any efforts to reduce the spending budget of the government are rejected forcefully. Without any real solutions on the reduction of the biggest money drains, the situation will only continue to worsen.
It is impossible for most individuals to tell whether or not a true recovery is happening. The data and statistics seem to be all over the place, and previous numbers are constantly being revised after they are released. That has led to some complaints about data manipulation by the current administration in order to downplay their lack of progress in this area. Others contend that this is simply the result of using an approximate estimate, and then making changes as the actual information trickles in. Whether or not this practice is seen as deceptive depends on the individual.
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