Started if a new recession in the U.S.? The answer to this question depends largely on where the respondent lives . If he lives in New York or Washington suburb and works in one of the major technology companies , of course , the answer is “no” , but as is the case in other regions ?
In the above areas , indeed , the economic situation is quite favorable and prices for upscale homes continue to grow , but most of the country for the poor and middle class has already started a new recession , the magazine writes zerohedge.
So , for large retailers beginning in 2014 dawned just horrendous , and home prices falling at a rate commensurate with the 2007
Meanwhile, the U.S. economy continues to lose so -called ” good jobs .” About 20 % of all U.S. households do not have any family member who would work on paying jobs .
According to the publication , in 2014 is a lot like the pre-crisis 2007 , but most do not pay attention to it .
In I quarter 2014 profit was mainly retailers below forecasts , and the gap between forecasts and actual data was the highest in 13 years . The reason for this is likely a weak middle class – the primary consumer .
Shall not give examples of all retailers , and take a well-known names .
Wal-Mart ‘s profit fell to $ 220 million in Best Buy sales decreased by $ 300 million, McDonalds profit decreased $ 66 million , and in American restaurants sales fall by 1.7 %.
However, the drop in retail sales is not the only sign of the problems of the middle class . Home sales show disappointing statistics for the past few months.
However, some analysts say the authorities have blamed the decline in extreme weather events , although in California, for example , all the winter weather was good . Most real estate sales drop affects the middle and lower price segments , that is precisely the houses that usually buys the middle class .
In San Diego , for example, sales of homes priced below $ 200 thousand fell by 46% , while expensive homes are selling just fine.
Traditionally, the U.S. economy is heavily dependent on consumer spending middle class. But if this class will continue to experience weakness, how long the U.S. economy may be retained by the recession ?
Other experts have also expressed concern. For example , John Williams of shadowstats.com. Below we give his words: ” We ‘re going down again . In I quarter GDP was revised to -1% , and I believe that in the II quarter will also be negative GDP growth. Incidentally, in fact economy looks much weaker than it is presented . Evaluation of economic growth is overstated because they understate inflation . “
The problem lies in their consumer income . Not only that, adjusted for inflation , they are at very low levels , so there is still a problem and revenue growth. If wages do not grow , we do not grow and costs.
For the rich strata of the population may also be in trouble . In recent weeks, banks including Citigroup, JP Morgan and Barclays, predict a decrease in revenue from trading in the II quarter by 20-40%. Of course, the revenue decline will be accompanied by staff reductions .