Top Ten Signs the US Economy is in Trouble

Here are my top signs the US economy remains in trouble. These are in no particular order, just the way I wrote them.

1. White House economist Christina Romer noted the stimulus provided a jolt, but the unemployment and slowed growth is likely to return. Not a surprise and second fall, like coming down from a Mt. Dew high is likely to be worse than the original fall.

2. Unemployment continues to go up. Numbers for September showed 531,000 more people are receiving unemployment benefits. Not good, but even worse are states such as Michigan were unemployment is at 15%.

3. The State of California is as close to complete collapse as a state economy can get. Riddled by sky rocketing unemployment in the farming sector, caused by government regulation, and out of control spending, California is a disaster. Add it to Michigan and it is hard to imagine a recovering economy with two major states in economic disarray.

4. There has been no change in the banking system and sub-prime loan market. It was this reckless actions of the banks and government that created the housing bubble. Even after the burst, nothing is being changed. Another bubble and burst is sure to come.

5. Commercial real estate is on the verge of collapse. Like the housing market, foreclosures loom for commercial real estate. A bad economy means empty offices, which means no income for the investors, which means foreclosures. This will set back any recovery.

6. The falling US dollar. This is basic economics. As the dollar continues to struggle, the economic power of the United States will suffer.

7. Rapidly growing national debt. The looming shadow of this debt is weighing on the economy. It is predicted that in the near future the debt will equal the GDP; meaning we are only paying off debt, not generating growth.

8. Federal government dictating wage controls. This sounds wonderful on the face, but banks in trouble need the top executives, which they will not get with the wage freezes. The brain power will walk away exactly at the point when they are needed the most.

9. Federal government takeover of the auto industry. Politicians are not business minds. They will never make the necessary decisions for business and will always land on the side of the popular option.

10. People are beginning to except the stalled growth as the excepted economic situation. If this mindset grows, the economy of the past will be just that.

Despite the up tink in the Stock Market, personally I am watching very closely for the dark cloud that may just be growing.