Gossip, Gossip and more Gossip

Well, my friend, get over it, the National Bureau of Economic Research is starting to talk about another round of financial mishaps that are set to come our way.In specific terms it means a time when the GDP or Gross Domestic Product slides back to negative after a short-lived time of positive growth.

Basically we are all aboard the financial roller coaster with no stopping in site. We have lived through the twist in the ride that was Unemployment rising to 7.9.

One of the big ones pertains to the housing market, last week- despite signs of recent progress- the numbers were awful, in fact there is a stiff and steep drop in new home sales.The housing market is big industry and to watch that fall again can have catastrophic results on the face of our current economic makeup.

Another big killer to our recent good fortune is the fact that employment is still down. It is hard for people to circulate money when they don’t have any coming in.

Many people criticize governments for overspending in a time of crisis, but many if not most economists believe that spending is just what needs to be done to get that money circulating and to get the employment rate up.

Though it is easy to pass judgment on our government for spending our tax dollars, the argument for spending now and saving when the economy is yet again robust is a good one.

Lets look at how this has benefitted us in the past, in 1937 the country was just starting to emerge from the Great Depression when there was a sudden focus put on austerity (raising taxes to pay off governmental debts), this is widely believed to lead to 4 years of halted growth and a longer recession.

If we can’t listen to our experts, can we listen to our history books instead of making the same mistakes all over again?

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