Image credit: Betari Ratih / CC BY-SA
The current rally would have you think that the U.S. economy is about to go back to where it was in January.
However, key data points suggest a so-called V-shaped rebound is premature, according to Joseph Young of CCN.
The job market is declining at historic levels, consumer spending has sunk in ways we haven't seen since the Great Depression, and there is a growing distrust of billionaires and the financial system as a whole.
Optimists are ignoring severe risks that will almost certainly affect how quickly things get back to normal.
Young says the three factors that make a sudden economic upward swing unlikely are:
- Consumer spending will decline.
- Lost jobs won't come back right away.
- Big money remains convinced that a “V-shaped” recovery are a fantasy.