Everywhere I look I read about the U.S. recovery that is causing the stock market to reach for the sky. I don’t see this recovery that is taking place. Not that I think I am the one who is the judge at whether or not we are in recovery mode.
It is important to look at the big picture as a whole at all times but sometimes we need to zoom in to get a better look at smaller pictures to help us understand the big picture better. This article is about a small piece of the economic puzzle.
Does anyone want to know what is really going on in the economy. So for this snap shot I want to look at my local economy Pittsburgh, PA. A small town outside of Pittsburgh, Mckeesport had a TV Call center by Dish Network lay off 600 workers. Read the full story in the Pittsburgh Post Gazette.
Now, I know that this is a small picture, and by one picture does not give the entire story. This is a piece of the story but it is an important piece. The local unemployment in the city of Mckeesport is 10.3% now with the 600 layoffs that will climb because Mckeesport is not a large city.
Dish Network cites the economy as the reason for the layoffs and a decline in profits. This is not a signal of recovery, people don’t get rid of pay TV in a recovery. They actually buy more channels and spend more money. How can there be a recovery if there is 10.3% unemployment.
If we take this small piece of the economic picture and apply it to all the other pieces over the county I think we will see similar scenes across the country. Large unemployment and more layoffs.
Some experts say that layoffs are a good thing because the company is becoming more effecient being able to restructure and then increase profits later on. That may be true in the future, but what it means is that the company is fighting for survival and cutting back to ensure future profits.
I believe that cutting back is a good thing when times are tough and perhaps the U.S. Government should cut back instead of increasing spending in every area to include raising taxes. In this time of uncertainty it will benefit each person to cut out the extras so that they may save extra if they need it. I would also recommend getting out of debt if it is not already to late for you to do so. Stop buying things that you can’t afford to pay for it just doesn’t make any sense to buy something if you don’t have money to pay for it.
How does this economic picture impact the U.S. Dollar and a forex trader in making trading decisions? The trader should just watch the charts and be ready for large movements in price changes. Stick to your system and keep a trading journal to see if your profits are increasing or decreasing.
Winner’s Edge Trading, as seen on: