Why This Recovery Is At A Snail's Pace

Fri, 06/01/2012 - 10:02 EDT - Seeking Alpha

By Value in Stock Market:This morning, we have just witnessed dismal job creation in May. Only 69,000 jobs were added and the unemployment rate went up to 8.2%. Why is this recovery so slow and painful?The current problem in the United States is not debt; it is insufficient investment. We need more government spending.It is widely observed these days that businesses in the United States are hoarding cash. Going down the list of the Dow components, Caterpillar (CAT), Microsoft (MSFT), Johnson & Johnson (JNJ), General Electric (GE), Chevron (CVS), and even Coca-Cola (KO), are all building up cash pile without investing it to good use. The big banks, in particular Bank of America (BAC), CitiBank (C), JP Morgan Chase (JPM), and Wells Fargo (WFC) are all not lending enthusiastically.Why? There are a few reasons.First, uncertainty in the economy still exists. The Eurozone is a mess. Fear of bank runs hasComplete Story »

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