We'd love to hear from you. Fill out contact request form and let us know how we can help. Or call us directly at phone
1 408-826-2284

Farlega’sBLOGS

That's we're talking about

Contact us

Write messages us using
the form below

Marked * are required

That's we're talking about!

Wish to learn more about what speak in company Farlega? Come to our blogs!

United States: re-recession, the election, unemployment

Published: Wed, 08/01/2012 - 19:48
By: admin

The growth of the U.S. economy slowed in the second quarter of this year. After an increase of 2% of GDP in January-March, the index rose by only 1.5% in April-June. The largest economy in the world felt the impact of European debt crisis. Needless to ordinary Americans to prepare for a repetition of the recession and the crisis of 2008?

 

To answer this question it is necessary to understand the reasons slowing U.S. economy. High unemployment, falling incomes, reduced costs, the decline in retail sales, recession, job cuts - so is the chain of economic problems in our country. Have you noticed that it creates a vicious circle?

 

However, U.S. companies cut jobs, not only because of falling retail sales. The debt crisis in Europe raises concerns for businesses in the United States, so they are in no hurry to invest in business development. The EU is one of the main economic partners of the United States, and in a globalized economy crisis in Europe can not but affect our businesses.

 

Presidential campaign in the U.S. is in full swing, and it is not clear who will be president after the election. What will happen to the program of tax incentives? What is the fate of social reforms introduced by current President Obama? Business will receive the answers to these questions at the end of the year. In the meantime, employers took the fence, which exacerbates the situation in the economy.

 

Thus, high unemployment and a decline in consumption, political uncertainty and the crisis in Europe are the main risks for the U.S. economy today. The only risk, which may affect the power and even ordinary Americans remains low power consumption and high unemployment.

 

But we can hardly expect the appearance of a law that will quickly solve the problems of the labor market. Living in the country and are unlikely to want to spend all their savings to support producers. What to do in this situation?

 

One of the areas of the U.S. economy that are doing well, it remains the property market. He continues to recover from the mortgage crisis, but the price of good houses are still low. It also remain low mortgage rates. However, this situation will not last forever. Therefore, Americans who have jobs and savings, should use the current situation.

 

Investment in residential real estate today will help ordinary people of the country to earn a crisis in the long run. This will be the best preparation for the crisis and recession. When will you be able to take credit for 30 years at 3% per annum?