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Is America`s Financial Eagle Still Flying?

How does the Dow Jones Industrial Average`s performance, as an indicator of overall American economic performance in addition to individual business performance, square with the perception held by many that the U.S. economy is ailing? In some countries, this perception has led to considerations of possibly switching foreign reserves from the dollar to the euro, or even back to the pound sterling, the currency of the United Kingdom. How is the U.S. economy really performing? While economists might differ overall, they would probably agree the U.S. is okay.

One of the biggest indicators of American economic performance is consumer confidence. That the DJIA has risen to record levels doesn`t say a lot about how the U.S. individual consumer feels, but in just a few short weeks we`ll have the Thanksgiving Day holiday upon us and with it the start of the holiday buying season. Those who want to look to the New York Stock Exchange or NASDAQ average to make a passing judgment on U.S. economic health would be wiser to just wait a bit.

There were many who were pointing to the imminent popping of the so-called housing bubble as a sign of malaise in the American economy. However, home prices have been falling due to the realization of many that some homes have been overpriced. Price wars over rent have become a staple of life not only in big cities or heavily populated states such as New York, but also as far afield as Montana and Kansas. That the American economy is chugging along at all even with an unpopular war in Iraq should be heartening to fans of the U.S.