posted on Oct, 29 2018 @ 03:13 PM
The market is in a recession. You would think with the ongoing retail apocalypse Amazon would be crushing it but it's not. You know why? No one has
any money to spend. I know because I work in construction and we basically gave up on residential construction and I work in a 3 state radius due to
my geographic location.
(Reuters) - Declines in big tech and Internet stocks such as Amazon pushed the Nasdaq lower on Monday, while strength in financial shares
mitigated declines for the S&P 500 as investors grappled with a recent spike in market volatility.
Major tech and growth stocks, such as Amazon (AMZN.O), Google parent Alphabet (GOOGL.O) and Netflix (NFLX.O), posted sharp declines. The S&P 500
technology sector .SPLRCT fell 1.2 percent.
My prediction is that we are already entering a recession or are in one. The stock buybacks and individual debt rates have been astronomical this
year. Flat out plane and simple the majority of American's can no longer afford personal luxuries. Most of you are seeing it all around you buy
ignoring the reality.
2018 has been a tough year for some traditional retailers. After shutting down more than 5,000 stores in 2017, there have been nearly 5,000
store closures announced so far this year.
But if Amazon is picking up all of their business why the sharp decline in stock? Is it all the .25 interest rate hikes or something else?
Consumer debt to reach 4 trillion by end of
Americans owe more than 26 percent of their annual income to this debt. That's up from 22 percent in 2010. It's also higher than debt levels
during the mid-2000s when credit availability soared.
It's really simple, people do not make enough money to cover the basics. The Fed's easy money lending policy has driven up the cost of goods and the
American mentality of only paying highly skilled employee's enough money to live on is starting to really hit the market. Oh, your retirement, it's
Here's a look at the Seattle housing market, one of the hottest markets over the last ten years. Look at the increase in inventory but here is what
you really need to look at. Click on a bunch of the red dot's and look at how many of the homes are cutting prices.
Redfin CEO warns about weak housing
Redfin CEO Glenn Kelman has been known for making some strong statements about the housing market, and last week he issued his latest
proclamation, warning of a slowdown that is beginning to develop across the country, even more so in expensive markets like Seattle and San
Yeah we know, housing cost are way out of control we get it.
Residential construction new home building very
growth is being wiped out by inflation
Workers pay rate lowest since 2008
2.9% Wage growth
is 1% After Inflation
September housing starts were weak, continuing their trend. They are one facet of secular stagnation, best seen as annual housing starts per
1000 people. After 7 years of economic expansion, they remain less than half of the previous peak (Jan 2006), and two-thirds of the average during the
previous two expansions. They rose to the 1963-2007 lows - and stalled.
The low to no wage growth is the main factor behind the increase in spending and slowdown in construction spending.
The Middle – 50%
Here's another number that may surprise you – to be in the top half (50%) of all earners you need to earn more than $29,999.99 a year. The number of
people earning less than $30,000 accounts for 49.33% of the population.
Now, I make a bit more than that however I have made 15 an hour before and it's not a lot of money. It means you can't do anything other than pay your
bills. This is 50% of the population.
Now this isn't to say everything is all bad because it's gotten a lot better in the last 2-3 years however it's not good yet. It's just gotten better
from the position of worse. The amount of money people are making is going down. This number needs to make sense and it's dragging down the entire
economy. I can't tell if this is being done on purpose or not but many of the jobs now paying $15 or less were once upon a time well paying jobs or
jobs that paid enough money to have a family on such as warehousing, driving a forklift and other manual labor jobs such as this.
edit on 29-10-2018 by toysforadults because: (no reason given)