Checking Economic Direction

The economy is dancing on a tightrope.

Market pressures  continue casting poor demand on hard goods as well as a housing slump with real estate prices continuing their downward spiral. Energy and food price escalation are weaving into the cost of goods produced and every area of commerce is inflating.

In this tug of war, everyone is the loser. The only weather vane that is not reflecting the real world seems to be the stock market. Eventually, if this scenario keeps up, earnings will begin to fall and the market implode. When it does, it will not be a nice time financially and the effect will be wide spread.