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Second Recession Still a Possibility?

The headlines these days are so dang confusing. What are you supposed to believe? That our country is going down in flames or that it’s all really overblown, and the media is hyping our problems up too much?

While I certainly agree that the media are too much of a fear hound the majority of the time, I feel now that they are giving people a bit of a false sense of security about the direction our country is heading.

There is no denying folks, we are in for some serious pain in the year ahead. After the country started to fall into what some were saying was going to be a double dip recession, where a recession is followed by another of the same kind after a few years of soft growth, we are now hearing that won’t happen.

And yet the news isn’t all that great either. Everything is still soft. Companies are sitting on mountains of cash instead of hiring people. We NEED companies to start hiring people if we are going to experience any type of real recovery.

By big corporations hoarding their cash and making some record profits over the past several months, they are hurting us, and only hurting themselves in the end. So, why are they holding on to their money?

Well, many companies are finding that they can still operate on a bare bones staff, and they like the big profits they are seeing. They are also afraid, like so many people are, that there is another recession heading our way, and so they are sitting on their cash in case.

That’s the same with many consumers. The consumer market is still soft because many people are still dramatically curbing their spending habits and saving their moneys for emergencies. In case they lose a job, their spouse loses a job, or some major cash flow event comes up.

This is all resulting in a still-soft job market and consumer goods market which is spelling trouble for the economy as a whole. It’s kind of ironic that the very people who are suffering the most are actually, in a way, indirectly causing the continuation of the recession-ish economic behavior.

This irony is anything but funny though. If companies don’t start hiring and getting over the fact that the economy could tank again at any moment, they are only furthering their own suffering, and the suffering of others.

And Congress is just sitting their fighting over budget cuts, spending more money that they don’t have instead of focusing on ways to incent large companies to hire more people and focusing on jobs creation. Lovely.

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