Financial Downturn

The financial downturn that has been the topic of news stories reported online and offline nearly every day this year seems to be finally taking a turn upward. Fewer workers are being laid off and fired as a result of companies losing money due to impacted sales and that could mean the United States, and other westernized countries are gaining financial footing once again.

The first sign of improvement is felt in the job market. There are fewer Americans being fired today that one year ago. While this does not mean the companies are able to rehire the lost employees, it does mean that the bottom has been reached in regards to firing employees in order to meet the financial goals of the companies. When that bottom is reached, the only thing left is a climb toward a more populated work force.

The price of household items is also a good indication of market and financial conditions. Inflation rates are lower which means companies are trying to lure the economy to a more thriving condition by making the price of household goods affordable for families even if the credit crunch is still controlling most of the spending habits of the consumer. While prices are certainly lower today for common goods than before the recession began, the rates are nowhere near those of the Great Depression.

Interest rates, in an attempt to mark a rise in the financial market, raised briefing in the late summer months. The rise was not beneficial for consumers so the numbers fell back to lower than average numbers soon after. When interest rates are low, the consumer has more buying ability in terms of larger debt. Home and car purchases are more affordable and the market places great weight on these buying activities when predicting the future of westernized economy.

The housing market is also showing signs of rebound. Fewer homes are listed on the market when compared to listings from one year ago. Mortgage applications and approvals are also on the rise. Consumers are spending more money on high priced purchases, more than likely due to the lower interest rates and positive reports by economists.

As the end of the year approaches, many of the United States induced tax cuts and rebates will push the economy even farther toward recovery. While the Cash for Clunkers program was an instant rebate, many of the governmental programs are associated with filing income taxes for the year before. The holiday season is when many companies post their highest gains, which is something the government is hoping will continue this year. The promise of rebates on tax returns could be enough to ease shipping tension and push the consumer back into the holiday spirit.

Nearly everyone has felt the impact of the worldwide recession. Economists believe the bottom has been reached and the only thing left to do is climb out of the negative hole the consumers and businesses have fallen into. While the climb may be treacherous and time consuming, there is little doubt that the American people and the people of the world are ready to jump back into spending and return the economy to its once thriving state.