
<p class="wp-block-paragraph">The first two quarters of 2022 indicated that the American economy had slipped ever so slightly into a recession – according to the classic definition of two negative growth quarters. ; As anticipated by the economic gurus, the third quarter was going to have growth. ; They estimated it around 2.3 percent. ; It did better than that at 2.6 percent.</p>



<p class="wp-block-paragraph">Politically that is great news for President Biden and the Democrats. ; They can claim – on the eve of the Midterm Election – that the economy has turned around and their programs are working.</p>



<p class="wp-block-paragraph">Unfortunately, that is not the case. ; What we are experiencing is a “double-dip inflation.” ; If you look at the last month of the quarter, you will see the beginning of another slowing down. ; The Federal Reserve is still expected to increase the interest rates again by 75-basis points. ;</p>



<p class="wp-block-paragraph">If anything, the third-quarter good news is bad news in terms of inflation … and that means the Fed needs to cool down the economy … and that means a very probable future recession. ; How bad it will be is being debated by the economists, the bankers, and the politicians – but there is almost universal agreement that there will be a recession in the near future.</p>



<p class="wp-block-paragraph">The just-released economic report is a lot like the difference between today’s weather and climate change. ; The third quarter produced some sunshine, but the economic storms are still on the horizon.</p>



<p class="wp-block-paragraph">While Biden will praise and take credit for today’s good news – as any President would &#8212; ; it is still not all good news. ; The inflation is still raging – prices are still climbing. ; And the Fed’s “cure” is not going to help the average consumer in the short run.</p>



<p class="wp-block-paragraph">Raising the interest rates hits hardest on those using credit cards – or planning to make a major purchase, such as a car or a house. ; In fact, the increases in mortgage costs are already depressing the housing market.</p>



<p class="wp-block-paragraph">To understand the severity of the impact, consider this. ; Your monthly payment on a $400,000 house today would have purchased you a $700,000 home at the beginning of the Biden administration. ; Put another way, mortgage rates have almost doubled – and are likely to go higher.</p>



<p class="wp-block-paragraph">While the voters may be HEARING the good news from the economists and the Democrats, they are not experiencing it. ; The economic problem for the average American is still getting worse. ; Biden says things will now be getting better in the future. ; The economists and the bankers – even the Federal Reserve – are anticipating a worsening economic situation in the future.</p>



<p class="wp-block-paragraph">In planning your economic future, you would be wise to listen to the economists and the bankers.</p>



<p class="wp-block-paragraph">So, there ‘tis</p>

Good economic report … but it won’t last
