Monday, August 03, 2009

Tax Revenue Falls Fastest Since the Great Depression

First, this is my 600th blog post for The Meridian!

The good news is that the S & P 500 broke the 1,000 level today or a 50% increase from the March lows. The bad news is that the economy is still very, very sick. Tax revenues have plummeted and social security and medicare are growing broke even quicker than originally thought. The structural underpinning of our economy is coming unglued...but at least the stock market is up.

I'm not convinced our economic woes are over and truthfully it would be a good thing if they weren't. If we recover to quickly and forget what happened and what led up to 2008/09, we may not attempt to fix the problems. If we don't fix the problems they will come back and much worse.

Scott Dauenhauer CFP, MSFP, AIF