There was a famous investment guru with Fidelity years ago that said you learn the most about investing by just "walking around". If your favorite restaurant is seeing a falloff in customers, it is noticeable and you can conclude they are being hurt by the recession. Do not invest in that restaurant. Not very complicated! Dah!
Well I have been walking around lately and it seems to me that the alleged "turn-around" of our economy is just an attemp to pump sunshine up our butt.
We are being told the worst is over for unemployment. How many people do you know that have found new jobs? The fact is that Wisconsin's unemployment rate keeps getting higher. In the meantime Mercury Marine in Fond du lac is threatening to move over 1000 jobs to another state in an attempt to consolidate. New Page (a paper mill company that shuttered a plant in Kimberly recently) has announced closing a mill near Wausau. Another 500 jobs out the window. Harley Davidson is laying off 1000 more employees because of poor sales. The one exception is Oshkosh Truck that recently got a $1 billion government contract and will be hiring several hundred employees. Thousands of people attended their "application fair". Hmmm! That doesn't seem to be an improving economy.
I went to Subway for a sandwich Sunday night at 5:30 PM. It is usually packed with people not wanting to cook on a Sunday night. I was their only customer.
Most restaurants seem to be experiencing reduced volume. How do I know? I see it.
Defaults on credit card debt is rising at an alarming pace. That doesn't seem good.
The stimulus package passed in March is supposed to be igniting the economy. How is it working for you?
The Governor promised no tax increases. The new state budget increases my property taxes by 3.5% I guess I needed to know exactly what the Governor meant by the word "no".
I'm looking for the signs that the recession is turning. I must be walking and looking in all the wrong places. Ah what the hell! Our government will take care of us.
The lesson Grasshoppers is that you shouldn't believe everything you are told. The economy stinks. I know because I have been walking around more lately. Spend your money wisely.
Love,
Dad