Economic data yesterday showed the recovery is still taking place at a slow pace. Home sales data were negative and unemployment benefits rose. It appears that confidence in the economy may be waning due to recent economic activity, despite hopeful estimates from a year ago. Lost GDP from the Gulf oil spill and economic activity related to travel may further negatively impact the economy. The stress test of 91 European banks will give short term clues about the strength of the economy and which way it may be going next. Major questions still remain about how much more stimulus -if any, is necessary to generate growth in the U.S. economy. Small businesses and investors are hoping that regulators and the federal reserve bank err on the side of short term stimulative fixes with longer term implications.
