Aside from GDP are there other indicators that can tell us if the economy is expanding or contracting?
Best Answer
Future1investor answered one year ago …
This is going to be a lot so read slowly:
First, I must tell you that ALL these numbers are greatly manipulated from reality so that the government can give the public a sweeter picture. This is designed to placate you into thinking that the government is doing everything it can to make life in the USA as good as it gets. Problem is, that is not at all true. So even when the numbers reported look bad, the sad fact is, they are really really bad.
We have done an article complete with text, charts, and videos to help explain it to the public. You can see it here at: http://www.marketedu.com/profile.cfm?username=Future1investor&viewblog =382
We are in recession and have been, but because they manipulate the numbers even to the point of showing us in the positive by a mere fraction thats what they do. So we actually DO have (recession) despite the denials to the contrary. We have (inflation) due to the action of the Treasury -Hank Paulson and the Federal Reserve -Ben Bernanke and of course what they have allowed to happen with mortgage backed securities which has resulted in the (financial crisis) we are in today. Add insult to injury and we have the head of the SEC who took away the uptick rule little more than a year ago. This has greatly accelerated the shorting of stocks. OMG! Thats three things! or is it four?
If you need more, please read and look at these charts: http://www.marketedu.com/profile.cfm?username=Future1investor&viewblog =286
As far as web sites that give you the data that you hear on CNBC or from your leaders, this site gives the bulk of what you may want to look at on your own:
Effective Federal Funds Rates, URL: http://www.economagic.com/em-cgi/charter.exe/fedstl/fedfunds
Charted Economic Data such as the “Effective Federal Funds Rate”. A comprehensive site of free, easily available economic time series data useful for economic research, in particular economic forecasting.
** When interest rates are rising, there is pressure on the market and the market will go down when rates are no longer very low.
*** Lower rates mean lower debt payments for corporations, more business investment, purchase of inventory, etc.
*** Lower rates mean bonds become less competitive as an investment. Stock market is usually on the rise making it more attractive than bonds.
Answers
Informer answered one year ago …
Sure, there are a ton of indicators to use. I found this link several months ago and it really helped with getting a grip on all of the important economic indicators
http://www.newyorkfed.org/education/bythe.html
Also, for a great calendar (so you know when these numbers are getting released) check out:
http://biz.yahoo.com/c/e.html
SallyG answered one year ago …
Aside from the statistics and sites suggested here, another perspective in tying the statistics to reality is to look around on a much smaller scale. How is your town doing? Your company? Your friends and family? The companies in which you invest for the long term? Your bank? The business with whom you deal on a frequent basis? Check out local newspapers from other areas of the country. A (to use a detested military term) "boots on the ground" perspective is good for balancing and interpreting theoretical research. The Internet has its advantages, but so does talking to and getting to know your neighbors (and not just from a financial outlook). Sorry if I'm putting too sociological spin on this.
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