Jim Cramer On The U.S. Economy: “Many CEOS Have Told Me About
A lot of people are shocked by how rapidly things are beginning to move. The U.S. economy is slowing down at a pace that we haven’t seen since the last recession, and this is something that I have been tracking extensively. But now the slowdown is so obvious that even some of the biggest names in the mainstream media are talking about it. For example, just take a look at what Jim Cramer of CNBC is saying. For a long time, he was touting how well the U.S. economy was doing, but now his tune has completely changed. According to Cramer, a lot of corporate executives have “told me about how quickly things have cooled”, and he says that many of them are shocked because this “wasn’t supposed to occur so soon”…
Just like in 2008, the suddenness of the downturn is taking many of the experts by surprise.
Because our system is so highly vulnerable, when things start to go bad we can see a crisis escalate very rapidly, and the outlook for the months ahead is very troubling.
Normally Jim Cramer doesn’t talk like this, but now he is warning that we are “on the verge” of a slowdown that could potentially “cause an awful lot of havoc and cost a lot of jobs”…
Back in 2008 and 2009, millions of Americans lost their jobs within a matter of months. Many of you that are reading this article know all about it, because it happened to you personally.
The same thing will happen again, and now it looks like it may happen a lot faster than most of the “experts” were projecting.
There is also another troubling piece of news that I would like to share with all of you.
On Friday, the latest NY Fed report came out, and we learned that U.S. household debt is now 837 billion dollars higher than it was during the previous peak in 2008…
Our entire “economic recovery” has been fueled by debt, and so those numbers are not that surprising.
But the troubling part of the report is the fact that debt delinquency rates have now risen to the highest levels in 7 years…
In other words, Americans are getting behind on their debts to a degree that we have not seen since the U.S. economy was coming out of the last recession.
This is a very clear indicator that the U.S. economy is really slowing down, and if delinquency rates keep rising that is going to mean big trouble for U.S. financial institutions.
Of course U.S. consumers are not the only ones with a massive debt problem. Corporate debt has more than doubled since the last financial crisis, state and local government debt levels are at record highs, and the U.S. government is now almost 22 trillion dollars in debt.
Perhaps if we had not spent six trillion dollars on wars in the Middle East since 2001, we would be in much better financial shape as a nation.
The Bubble to End All Bubbles, which some have dubbed “The Everything Bubble”, appears to be starting to burst and that is likely to mean tremendous chaos for global financial markets.
And without a doubt, this was another very tough week for Wall Street. All of the major indexes were down significantly, and tech stocks got hit particularly hard…
For the past couple of years we have been enjoying a time of relative economic and financial stability, but most Americans used that time to party instead of to prepare.
Now that period of stability is ending, and a very uncertain future is ahead.
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