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!