Charlie makes some good points about the false use of indicators to determine where the economy is heading. It does seem to be heading in the right direction, but we are far from being able to announce a “complete” recovery. The housing market is still showing declines in building permits and housing starts, while sales are up slightly from last quarter. This is nothing to get excited about, as it could merely be the result of bargain hunters taking advantage of the opportunity to buy in the depressed market. Housing foreclosures have not tapered as much as paused for the next round. According to the Bureau of Labor Statistics, unemployment for the African-American and Hispanic population is estimated to be a staggering 5 times the national rate. As my colleague states, we are not out of the woods, not by a long shot. Those same indicators failed to provide the experts ample warning of the emergence of a vast recession. Last year the market analysts and experts seemed to all be caught off guard. Having said that, it remains a mystery as to why analysts are rushing to judgment about the country’s economic recovery. Particularly since they are well aware of the skewed nature of the various indicators used to make such a determination.-K. Reilly
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