Yes, schools are letting out for spring break (already!) allowing students to forget their grades, for a while. Uncle Sam never gets a vacation but he is good at ignoring his scores.
We are slapping ourselves in the forehead as our leaders exhaust us with the inner fighting (John Boehner drinks wine!). I would try to grade them but I’m afraid either Team Dems or Team Repcans would send a drone for me if I do not give them an “A.”
The stock market erased all of the losses between 2007 and 2010 like a teenager barreling into an all-time high. Less than 1% of the American population are benefiting from the stock market’s spectacular recovery. Our 401K’s (if you still have one) may improve.
Why the continued march upward? Coveted tax benefits were bestowed if businesses invested in technology. No incentives were given to hire or help their current employees. Many companies expanded globally to enjoy the perks of other countries by using our cheap money. (Thank you Fed!) The result: corporate profits and dividends. (On a personal note, kudos to Pandora. Polka music lives!) We will rate the stock market when they sober up.
The employment numbers proved more people are working than expected. It beat the soothsayer’s predictions by a wide margin. Businesses are moving into Arizona and hiring. General Motors announced the opening of a new technology plant in Chandler. USAA is expanding in North Phoenix.
Retail Sales numbers are improving, again surprising the soothsayers. (Their crystal balls need a good cleaning.) They obviously do not have children who need clothes, shoes or school supplies. After all this is America and we cannot have little Chanel or Harvard attending kindergarten in hand-me downs.
Interest rates need a time-out. With all of the positive economic news they are creeping back up to 4%. Say it ain’t so! This is truly horrific. (According to my clients)
But the school yard bully to our improving economy is the deficit. The only realistic evaluation for the continuing drama is an “F”: for fractured. We will all be standing by to grade our country in the coming months.