We’ve been hearing plenty of talk recently about a “double dip recession”. We haven’t fully recovered from the so-called Great Recession when another one may be rapidly heading in our direction. The last time this happened was in 1980 and 1981/82.
Americans are not buying things right now, and that means virtually no job creation. Big corporations are sitting on mounds of cash, waiting on folks to go out and spend. State and local governments are cutting spending in response to lower tax revenues.
Ready for something positive? The Wichita Eagle reported this week that some of the local companies that do business with the larger aircraft manufacturers are seeing their business pick up. Exacta Aerospace builds machine parts for the aviation industry. The company is planning more assembly stations and equipment, and will be running 24 hours a day, seven days a week.
Meanwhile, Wichita City Manager Robert Layton tells me a lean budget is still ahead at City Hall. He says any recovery will take 18 months to have an impact on local property values … and hence, revenue to support local government.
Our thought for today is from Warren Buffett:
“In the business world, the rearview mirror is always clearer than the windshield.”