The Great Disconnect!

Currently today the U.S. stock and bond markets are at all time highs with valuations greater than prior market tops except for the year 2000.  And yet despite all of the happy talk the U.S. economy is nowhere near back to normal.

An economy on the mends?  Home ownership continues to drop precipitously.

  

The Labor Force Participation Rate.  So many of our citizens have simply given up looking for work dropping our headline unemployment so touted by our politicians.  The chart below is far more indicative of employment.

 

Inactivity Rate for Working Age Men 25-54.  Since the end of the recession has increased from 10% to 12%.  If this goes any higher this will have severe societal implications.

 

 Real Medium Household Income.  Incomes are down from the year 2000 and hasn't shone any  positive upward trend.

Inflation.  Prices are up 50% since the year 2000.  It is amazing that incomes have done as well as they have with this headwind.

Government Social Benefits SNAP (food stamps).  So many on relief programs and no real sign of abatement.

The Velocity of Money:  In a healthy economy money turns over quickly and yet continues to drop after the recession ended.

 

The Great Recession continues despite all the happy talk from the talking heads on TV the economy at best is trolling at the bottom, unfortunately this so called recovery is long in the tooth an upcoming recession should be anticipated.  Before things get better the odds favor them getting worse.

DYI