We seem to be at a fork in the road economically, as the so-called surge in employment has stalled, and more and more Wall Street gurus are advising people to start selling out of the stock market.
A few big reasons, as we pointed out yesterday in BankingMyWay’s CD Trends are the “Three Gs” — Goldman Sachs (Stock Quote: GS), Greece and the Gulf of Mexico. All three issues have dominated the news cycle in recent weeks, and may point to an overall slowdown in economic activity, each for their own reasons:
Goldman Sachs: Congressional hearings on Goldman Sachs' questionable trading and investment practices poured more fuel on the Wall Street fire. Reformers point to Goldman Sachs as what’s wrong with the financial markets — but Congress could over-extend its reach and crimp Wall Street’s capitalist nature.
Greece: Drowning in debt, economists are watching Greece like a miner watches a canary. If Greece collapses, other nations may be next.
The Gulf: British Petroleum (Stock Quote: BP) seems to have gained some ground on that massive oil spill in the Gulf of Mexico. But the public relations disaster hasn’t gone away and investors have to wonder what the spill’s impact will have on U.S. energy policy.Call it bad luck or lousy timing, but the Three Gs popped up at the worst possible period for the U.S. economy. Taken together, they threaten to negatively influence consumers and investors, and bring the fragile economic recovery to a screeching halt.
If so, that would serve to keep bank interest rates down, as more people flee the stock market for the safe haven of bank deposit rates.
On that sobering note, let’s move forward with a look at some of the best deals of the week — deals that could take some of the sting out of the troubling economic news emanating from the Three Gs story.