Barrels of ink have been spilled, and millions of keystrokes have been struck by people trying to figure out why the economy isn’t clicking on all cylinders.
We could probably save a lot of trouble by declaring the obvious: a perfect storm has emerged, fueled by a confluence of economic factors that threaten to throw the U.S. economy back into recession – or worse.
Such factors include:
- A weak job market – The private sector only created 83,000 jobs in June, according to the U.S. Labor Dept. We’ll need at least 200,000 jobs created every month to get us back to pre-recession job levels, and that could take a decade, some economists say.
- A limp housing market – Mortgage applications continue to slide, according to the Mortgage Bankers Association’s most recent survey.
- A “white-knuckle” global debt crisis – The debt crisis that is threatening Greece may spill over into other Euro counties, and maybe even the United States.
- A tepid consumer confidence landscape – The latest Conference Board consumer confidence number is down to 52.9 – down from 62.7 in May.
Any one of these scenarios – if they worsened – could derail any economic momentum. That would be bad news indeed for bank rate savers. When the economy is down, the Federal Reserve will almost certainly look to keep rates as low as possible. When interest rates are low, bank rates are sure to follow.
While all of this news is thin gruel for bank investors, there are some slivers of sunlight. More specifically, there are still some surprisingly good deals out there on the market – and BankingMyWay has dug up a few for you this week.
Bank Rewards Checking
Massachusetts-based South Shore Savings Bank has unleashed the hounds with a great new deal – open a new rewards checking account and get not only a 3.69% interest rate, but also a $200 bonus for opening the account.