5 Economic Indicators That The Economy Is In Trouble

Here are some Financial Indicators that will help you make decisions on what may be looming in the national and international economy.


5. Wages Are Stagnant

Why: Wages and Wealth are like Butter to bread when wages are stagnant or slow to rise, so is wealth thus less people spending, and less people saving thus a slagging economy. 

4.  Banks Lending alot less

Why: Credit And Debt is part of the economy banks lend money, businesses and consumers receive capital, thus stimulating the economy. If there is less lending, businesses  that rely on capital for lending fold employees are laid off, consumers are not able to progress as well without capital from lenders.


3. Oil Prices are high

Why: When Oil prices are high it effects logistics(The inter modal system that delivers goods from manufactures to the loading docks of businesses for consumers to purchase). Also the prices of transportation are higher there is less travel and car sales suffer drastically. 

2. Massive numbers of foreclosures

Why: I shouldn't even need to explain this ?? If a person can't pay for their mortgage, most likely its typically due to lack of employment or job losses. Most people will not play around and risk being homeless. Its an old saying "If your neighbor loses their house in foreclosure no big deal but when your other neighbors losing their house too then you should worry".

1. Market Crash

Why: The US stock market is worth about 6 trillion dollars when it crashes everyone feels it, corporations close shop create massive layoffs, tightened job markets and lower wages. Creating deflation and the wealthy and rich get hurt and the poor get slammed.


References: CNN Money