The stock market is steadily improving and the job market is making a slow turnaround. Although foreclosure rates are still relatively high, the housing market is becoming a place to invest in once again. With all of the recent success of the stock, housing, and job markets, investors and consumers may consider the bank as an alternative when investing or attempting to save money. Well, don’t take the money from under the mattress just yet.
Although the job market is improving, the federal government is still unstable when deciding the fate of the millions of unemployed. Last November, the House of Representatives refused to agree to unemployment benefit extensions without the approval of Bush tax cut extensions. In fact, the House claimed to be unable to afford an unemployment extension, but soon changed their story when President Obama agreed to grant the Bush tax cuts for the wealthy along with unemployment benefits. The House appears to make decisions based on personal agendas and not on the needs of the people that they represent.
In addition to the House of Representatives being focused on personal agendas, the shrinking revenues of companies is negatively impacting the economy. Although consumers are putting money into the economy through everyday purchases, the amount earned is not enough to bring complete restoration to companies severely affected by the downturn. Some companies are still experiencing losses and are being forced to layoff employees. Shrinking revenues for companies cause them to look to the bank for loans. While banks tend to grant loans to corporations without the red tape that they put typical consumers through, if companies default on loans, banks have to account for the money in new fees or count the loan as a write-off and loss; either way the consumer or investor loses.
Individuals desiring to maintain their earned income should not invest everything into the bank.
