Boom or Doom for the US Economy?

zerohedge.com

Just before Y2K, I was one of those fanatics with bottled water, extra food on hand, and some spare cash at home so if all the computers failed I’d be prepared.

Today as I listen to the contrarians prophesying economic doom, how should I prepare for 2014? Of course, they could be wrong, after all, the stock market chart lines are still going in the right direction. But at some point Wall Street will realize that life isn’t as exuberant or as lucrative on the everyday streets of America.

American consumerism fuels the US economy. Yet, the 2013 end-of-the year financial reports indicate we didn’t buy as much. It could be that we’re all feeling the cumulative effect of the unemployment and underemployment in our communities. According to government statistics, 1.5 million fewer Americans are employed full-time than in 2006, despite the fact that our population has increased by 16 million since then.

We’re also having to spend more on the necessities like food and health insurance, and have less money to spend for the economic drivers, like homes, cars, and “big ticket” items like electronics. For many, household income is declining.


The stock market has had a record bull run thanks in large part to the Federal Reserve policy of “quantitative easing” (read: printing 85 billion dollars every month) that’s a lot of cash stimulants circulating. The problem with stimulants is you need more or you crash. And true to form, every time the Fed hints of cutting back the financial drugs, the market teeters. But the Fed must cut back eventually—or worse things could happen.
Check out this stock market chart from 1929 with an overlay of 2013 on top if it. Follows a similar trail.

McClellan Financial Publications 2014 holds a lot of promise. But I’m just not so certain those promises are the ones we want. So, if you’re like me and want to be prepared, it might not be a bad time to make sure you have what you really need on hand. And like every roller coaster ride, after it crests the highest height, we know what comes next