Here's Why Every Trend That Was Boosting The Economy Is Now Changing For The Worse

Recovery At Risk

The U.S. recovery is sputtering because the economy’s current basis for growth is disappearing, according to A Recovery At Risk.

This report, from Lincoln S. Ellis, Chief Investment Officer of Strategic Financial Group, and Sherle R. Schweninger and Samuel Sherraden of the New America Foundation, does well to point out how we built this recovery.

Every move meant to bolster the U.S. economy is now in retreat and new headwinds are emerging to future growth strategies.

Source: Lincoln S. Ellis, Chief Investment Office, Strategic Financial Group

Sherle R. Schweninger and Samuel Sherraden, New America Foundation

Source: Lincoln S. Ellis, Chief Investment Office, Strategic Financial Group

Sherle R. Schweninger and Samuel Sherraden, New America Foundation

First here's how the recovery was built...An inventory rebuild

Source: Lincoln S. Ellis, Chief Investment Office, Strategic Financial Group

Sherle R. Schweninger and Samuel Sherraden, New America Foundation

Businesses investing

Source: Lincoln S. Ellis, Chief Investment Office, Strategic Financial Group

Sherle R. Schweninger and Samuel Sherraden, New America Foundation

Government stimulus

Source: Lincoln S. Ellis, Chief Investment Office, Strategic Financial Group

Sherle R. Schweninger and Samuel Sherraden, New America Foundation

Government support for consumers

Source: Lincoln S. Ellis, Chief Investment Office, Strategic Financial Group

Sherle R. Schweninger and Samuel Sherraden, New America Foundation

Tax breaks

Source: Lincoln S. Ellis, Chief Investment Office, Strategic Financial Group

Sherle R. Schweninger and Samuel Sherraden, New America Foundation

Now why it's over...inventory rebuild at an end

Source: Lincoln S. Ellis, Chief Investment Office, Strategic Financial Group

Sherle R. Schweninger and Samuel Sherraden, New America Foundation

Business investment slowing

Source: Lincoln S. Ellis, Chief Investment Office, Strategic Financial Group

Sherle R. Schweninger and Samuel Sherraden, New America Foundation

Government stimulus in decline

Source: Lincoln S. Ellis, Chief Investment Office, Strategic Financial Group

Sherle R. Schweninger and Samuel Sherraden, New America Foundation

States now have their own fiscal crisis

Source: Lincoln S. Ellis, Chief Investment Office, Strategic Financial Group

Sherle R. Schweninger and Samuel Sherraden, New America Foundation

Government support for incomes now weak

Source: Lincoln S. Ellis, Chief Investment Office, Strategic Financial Group

Sherle R. Schweninger and Samuel Sherraden, New America Foundation

The demand that was borrowed is now coming to roost

Source: Lincoln S. Ellis, Chief Investment Office, Strategic Financial Group

Sherle R. Schweninger and Samuel Sherraden, New America Foundation

Households are deleveraging

Source: Lincoln S. Ellis, Chief Investment Office, Strategic Financial Group

Sherle R. Schweninger and Samuel Sherraden, New America Foundation

And that means people are saving, not spending

Source: Lincoln S. Ellis, Chief Investment Office, Strategic Financial Group

Sherle R. Schweninger and Samuel Sherraden, New America Foundation

And credit is contracting as a result

Source: Lincoln S. Ellis, Chief Investment Office, Strategic Financial Group

Sherle R. Schweninger and Samuel Sherraden, New America Foundation

Housing is too continuing to fall

Source: Lincoln S. Ellis, Chief Investment Office, Strategic Financial Group

Sherle R. Schweninger and Samuel Sherraden, New America Foundation

And wealth with it

Source: Lincoln S. Ellis, Chief Investment Office, Strategic Financial Group

Sherle R. Schweninger and Samuel Sherraden, New America Foundation

Unemployment remains high

Source: Lincoln S. Ellis, Chief Investment Office, Strategic Financial Group

Sherle R. Schweninger and Samuel Sherraden, New America Foundation

And wages are stagnant

Source: Lincoln S. Ellis, Chief Investment Office, Strategic Financial Group

Sherle R. Schweninger and Samuel Sherraden, New America Foundation

The trade deficit is getting worse

Source: Lincoln S. Ellis, Chief Investment Office, Strategic Financial Group

Sherle R. Schweninger and Samuel Sherraden, New America Foundation

China still a big problem

Source: Lincoln S. Ellis, Chief Investment Office, Strategic Financial Group

Sherle R. Schweninger and Samuel Sherraden, New America Foundation

And uncertainty is having an impact (note outlook on sales)

Source: Lincoln S. Ellis, Chief Investment Office, Strategic Financial Group

Sherle R. Schweninger and Samuel Sherraden, New America Foundation

Outlook bleaker for GDP

Source: Lincoln S. Ellis, Chief Investment Office, Strategic Financial Group

Sherle R. Schweninger and Samuel Sherraden, New America Foundation

How did we get into this economic mess?

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