Notwithstanding the fact that summer is here, I have recently taken some time out to ponder the current state of our economy and consider the direction that it is moving in.
After a flurry of 'green shoots' economic news this spring, the past month or two have really given little indication as to our current state of affairs. I look at people around me and note that most of them are still working and living like they always have been. Yes - I know there have been casualties of the employment market, but I also know that when I go to a restaurant on the weekend that the lineups are just as long as they have always been, and I noted on a recent Costco run that there were few, if any, signs of a recession.
And then yesterday brought news that in the Seattle area (where I live), June 2009 home sales actually increased compared to June 2008. However, unemployment in our state continues to grow.
It is obvious there many economic signals all around us that make us constantly aware of the state of things around us. Yet with this recession, it is truly difficult to get a handle on just where we are at.
So what do I think is going on? I believe that the worst of things is over with. However, I am not necessarily convinced that we are on any rapidly rising path to economic recovery right now. Perhaps it is just summer doldrums setting in, but there are no consistent set of economic signals that strongly point in any economic direction.
Take the stock market for example - after hitting decade long lows back in March, it rebounded sharply throughout the rest of the spring. And now for the past month and a half, it has done absolutely nothing other than stay within a fairly tight trading range. If "Mr. Market" is on a directionless path, then how is the rest of the economy supposed to be doing something more unique?
Because there are no obvious signs of where we are heading, it is times like this that it is especially important to use good stewardship over your finances:
- Prepare yourself for another financial storm - while this may not happen any time soon, at some point in time, there will be another economic downturn that you may find yourself caught up in. There is nothing wrong with being prepared.
- Having said that, do not deprive yourself of any and all enjoyment - life and work can be very overwhelming without these outlets.
- Remember the 80-10-10 rule and do everything you can to live within it.
- Trust God - he promises to never leave or forsake us. That promise will never change.
It is not my intention to deflate your hopes with this post - and neither is my intention it to increase your fear. These are unusual times that we are living in, and I'm afraid that the great vitue of patience is going to be required before we get any better indication of where the economic ship is sailing.
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