So Wall-Street is Rallying to new highs today on Increased Jobs report. In the near future, they will be eating their words as we enter into another Financial Crisis similar to the Housing Crash of 2008. Small business America has been hurting for the last 5 months which is not being counted in the numbers. Many small businesses are closing down all across the US but will never show up in the Unemployment rate. Many of these employees are not eligible to draw unemployment therefore the real numbers are not accurate.
We are also seeing across the board reduction in wages. Sales have slowed down and many job are sales jobs paid by performance and commissions. Again, these Wall-Street Numbers do not show how many people are making less now than they were. All of these lost wages trickles into the economy. Americans typically spend more than they make, so when they see a reduction in wages, they start cutting expenses. One less dinner out, one less vacation, one less toy for the kids. All of these cuts start hurting sales of other business and they start cutting and you see a domino effect. Before you know it, they default on credit cards and debt causing even more pain.
I believe the Subprime Marketing crashing is just the first Domino to start, so look out below as the dominoes gain momentum.