As we keep an eye on the economy we are seeing an uptick in home sales, more construction starts and permits being pulled and now a bull rally on wall street!
It seems to all be positive. The graphs and charts are all trending upward but unfortunately we still have unemployment. Before we see any type of decrease in unemployment, the economy will have to stabilize. Companies had to cut back to save cost due to a decrease in revenue. Some companies over expanded; ignoring the basic law of diminishing returns, thinking they would never see a time like this.
As the downturn continued, prices came down to keep up demand and companies cut back to return the economy to equilibrium. Unfortunately this cost cutting by companies meant closures and job cuts, but there is a bright side to this mess: The economy is finally seeing signs of recovery! The giant economic ship is beginning to turn and with the turn, not today not tomorrow, but in the future will come economic growth.
That’s my take on the economy! Please feel free to comment.
P.S.
It is 10:52 A.M. on Friday and the DOW is up 125 points