US Bonds continue to receive an enormous amount of money. Why? Because of the increasing fear of a global economic slowdown. This is not to say they don’t already recognize that things are tough, rather it means they don’t see it getting better for a long time.
The financial markets can’t figure out the Fed. The Feds don’t agree on a direction. Existing home sales were 27% lower than last month.
It appears the meddling from Washington academics has produced unintended consequences. This is not news to us. The problem lies in the fact that they think they are the solution.
For example, the first time homebuyer tax credit, which was funded by taxpayers, rewarded those who were already going to purchase a home. Now we have a void and with a faltering job market, and there is no foreseeable boost.
More than ever before, now is a good time to focus energy on you Family Spending Plan. You can create more wealth by reducing spending than you can by investing in the stock market.
One interesting point is the incredible amount of money businesses and households are hoarding. Hoarding is defined as carefully guarding assets. With the unpredictability of Washington DC lurking about, there is no confidence in the system.
Consider creating your own banking system and bypassing the traditional way of preparing for the future.