1. Economic forecasting is difficult.
2. Financial market forecasting is more troublesome than economic forecasting.
3. The financial sector in this country has lied a great deal.
4. The government cannot predict the economy or financial markets.

These are, of course, very good lessons to learn. It is important to realize that neither the government, nor the financial “experts”, have all the answers. No one can predict what any market is going to do, nor can anyone see all of the economic consequences of policy measures. So it is important to consider your own financial situation, and make the best decisions you can.

One way to do that is to look at things for the long term, and change your financial habits so that they reflect prudent behaviors that help you prepare to weather the down cycles. Because they will always come.

Image source: Daylife

Post from: EveryJoe

4 Lessons Ben Stein Got From the Recession

China’s trade surplus with the United States fell in January as demand for Chinese goods weakened amid fears of a U.S. recession. With the high cost of energy, the falling value of real estate assets, and the tightening credit market, consumers are less inclined to indulge in discretionary spending on poisonous toothpaste, tainted pet food, and hazardous toys. According to one trade specialist, “Those are the extras.”

The United States and other trading partners complain that China’s currency, the yuan, is kept undervalued, giving its exporters an unfair price advantage. Some American lawmakers have even called for punitive tariffs on Chinese imports.

“If they’re not going to play fair, we’re going to act,” says one unnamed congressman. “We can have hearings and get on TV and look like we’re doing something in an election year. Plus, maybe it’ll distract voters from the sex scandals.”

Post from: EveryJoe

China’s January Trade Surplus with U.S. Narrows