Support the Wall Street Examiner! Choose your level of support to receive a free proprietary report as my thanks. Click the button below to see your options. Become a Patron!

US consumer under constant uncertainty assault – Sober Look

This is a syndicated repost courtesy of Sober Look. To view original, click here. Reposted with permission.

One can list numerous reasons for tepid economic expansion in the US. One explanation is that the US households and businesses are relentlessly bombarded with issues that generate uncertainty. Many of these issues carry the so-called economic “tail risks” – non-zero probability of a severe economic deterioration. In a vulnerable economy and after facing the financial crisis and the Eurozone crisis, tail risks are no longer brushed off. Unlike in the 90s for example, it doesn’t take much these days to slow consumer spending and trigger companies to resume hoarding cash.

If these mini-shocks could be avoided and the economy left to heal itself, chances of growth would improve significantly. Unfortunately the bombardment continues, with the bulk of uncertainty generated by the federal government. One only needs to look at the high-frequency consumer sentiment metrics to see the full picture. And people wonder why the 2013 GDP growth is projected to be around 1.5%.


Source: Gallup

From our sponsor:

Wall Street Examiner Disclosure: Lee Adler, The Wall Street Examiner reposts third party content with the permission of the publisher. The opinions expressed in these reposts are not those of the Wall Street Examiner or Lee Adler, unless authored by me, under my byline. I curate posts here on the basis of whether they represent an interesting and logical point of view, that may or may not agree with my own views. Some of the content includes the original publisher's promotional messages. No endorsement of such content is either expressed or implied by posting the content. All items published here are matters of information and opinion, and are neither intended as, nor should you construe it as, individual investment advice. Do your own due diligence when considering the offerings of information providers, or considering any investment.

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.