THE U.S. ECONOMY'S BUBBLE MAY BE ABOUT TO BURST

THE U.S. ECONOMY'S BUBBLE MAY BE ABOUT TO BURST

14 REASONS WHY THE U.S. ECONOMY'S BUBBLE OF FALSE PROSPERITY MAY BE ABOUT TO BURST  

Submitted by Michael Snyder of The Economic Collapse blog . 08/14/2014  http://www.zerohedge.com/news/2014-08-14/14-reasons-why-us-economys-bubble-false-prosperity-may-be-about-burst

Sumarized  by Hugo Adan. Agosto 14-2014

http://nd-hugoadan.blogspot.com/ 

The record-breaking outflows in high-yield bonds are not the only indication that the U.S. economy could be on the verge of very hard times.

For a long time now, we have been enjoying a period of relative economic stability even though our underlying economic fundamentals continue to get even worse. Unfortunately, there are now a bunch of signs that this period of relative stability is about to end.

The following are 14 reasons why the U.S. economy's bubble of false prosperity may be about to burst...

#1 Billions of dollars are being pulled out of junk bonds right now, and that has some analysts wondering if a financial crash is right around the corner.

#2 bonds usually crash before stocks do...

#3 Retail sales have missed expectations for three months in a row.

#4 Same-store sales like Wal-Mart have declined for five quarters in a row. 

#5 mortgage applications just hit a 14 year low, even lower than worst moments of the financial crisis of 2008.

#6 tech industry is not booming: mass layoffs in the tech industry are actually 68 percent ahead of last year's pace.

#7 Federal Reserve: 40 percent of all households in the United States are currently showing signs of financial stress.

#8 The U.S. homeownership rate has fallen to the lowest level since 1995.

#9 Recent survey:  76 percent of Americans do not have enough money saved to cover six months of expenses.

#10 Rumblings of a stock market correction is very loud. Ex CNN: "Is a correction near? Wall Street on edge". 

#11 The civil war in Iraq is out of control. Iraq is the 7th largest oil producer, if the flow of oil is disrupted that could have serious consequences.

#12 sanctions on Russia affects US, Canada and EU: Will this slowdown in global trade significantly harm the U.S. economy?.

#13 The three day cease-fire between Hamas and Israel has not end, they are preparing for a "long battle" that could create a full-blown regional war in the Middle East.

#14 The number of Ebola deaths continues to grow, and if the virus spread inside the US it has the potential to pretty much shut down our entire economy.

MEANWHILE, things look even more dire in much of the rest of the globe. Ex., the economic slowdown is so bad in Europe that they are actually experiencing deflation... Portugal has crashed into deep deflation and Italy’s inflation rate has fallen to zero as the whole eurozone flirts with recession, even Germany is flirting with possible recession. Japan, GDP just contracted at a 6.8 percent annual rate during the second quarter, the worst contraction since 2011.

IN FACT, THE CONDITION OF THE GLOBAL FINANCIAL SYSTEM is now far worse than it was just prior to the financial crisis of 2008. Most people just assume that our leaders have fixed whatever caused the problems last time.  And when the next crisis arrives, they will be totally blindsided by it.

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