After two months of declining, consumer confidence shot up to 54.1 – just short of recent highs.
Sure, the number grew cheers, but remember this. Unemployment is still rising. In fact, the real U.S. unemployment rate is 16% if “persons who have dropped out of the labor pool and those working less than they would like are counted,” said a Federal Reserve official.
Yep, 16%… not 10%, as Obama is predicting.
Plus, there still exists record debt. For America to show any real growth, we need to cut back on debt and create jobs. Here’s how ugly reality really is:
The only certainty we have going forward is that Bernanke will continue to throw everything, plus the kitchen sink at the problem – which will eventually lead to hyper-inflationary risks.
Consumer spending has clearly hit a wall. Our debt has finally become too much of a burden. Your home can no longer be used as a personal ATM. Oh, and Option ARMs are just now starting to reset. Take a look at just how bad the economy is going to get.