5 Signs that our Economy has Big Problems

http://www.alternet.org/economy/5-signs-american-economy-may-be-shakier-ground-you-think?akid=12683.294211.CCVNRs&rd=1&src=newsletter1030226&t=3

1. The middle class is still shrinking.
2. Inequality hurts economic growth.
3. State of the unions.
Unions ensure that American workers have the purchasing power they need to drive the economy. Their weakening crushes consumer demand and acts as a driving force in destabilizing economic inequality. Unfortunately, federal government labor statistics show a decade of declining union membership across the country.
4. The world economy is in trouble.
Just as the U.S. seems to be improving, the global economy is not looking so good, with the possibility of a prolonged downturn in Europe most worrisome. Europe appears to be sliding into deflation on a continent-wide basis, a problem that carries with it the prospect of a much steeper fall.
5. Another financial crisis?
When a lot of economists talk about the next financial crisis, they aren’t talking about if. They’re talking about when.
Let’s face it, too-big-to-fail banks are still a giant threat, and they are still too big to regulate. The Republicans — with many Democrats — are rolling back significant pieces of the Dodd-Frank legislation meant to curb Wall Street excess. Just two weeks ago, the banks got their way in the congressional budget, which gave them permission to move risky derivatives into the insured portions of the bank. Crank up the casino! Again