Despite a 5 percent climb in consumer spending in May, the rest of
the economic news is not good, with slower growth in personal income
and a savings rate that continues to fall. Consumers are not ready to
weather the serious economic storm that is coming.
Just take a look at the dark clouds looming on the horizon: Companies
are having the worst earnings season ever -- just today, both 3M and
Eastman Chemical announced that second-quarter earnings won't meet expectations
... One in three companies plans to cut capital spending over the next
year ... Industrial production is slumping ... Consumer and corporate
debt are at record levels ... Layoffs continue, with a recent survey
showing that 25% of companies plan to eliminate jobs next year. All
of these factors indicate we are headed toward recession.
Batten down the hatches, the storm's about to hit!
