Sorry to break this to you, but the downward trend has been building since 2000. Here is a chart of The Fed’s balance sheet (white line) which has been growing rapidly since late 2008. The other indicators:
1. the 10 year Treasury yield (green): it has been falling steadily … until May 1st. And is now falling again.
2. Labor Force Participation rate (purple): it has been falling steadily sans a slight rally in 2007.
3. M2 Money Velocity (yellow): it has been falling steadily sans a slight rally in 2006.
And if we look at The Fed Balance Sheet against the following variables, we find that same declines:
4. Homeownership rate: it peaked in Q4 2005.
5. Mortgage lending: it peaked in 2004.
6. Mortgage purchase application: it peaked in 2005.
So, the massive expansion of The Fed’s balance sheet has helped … the stock market!
These news items about how bad the economy is doing get almost almost zero coverage by the MSM. Imagine the 24/7 coverage they’s be giving these stories if there was a Republican President.