"A Truly Extraordinary Slump": Reports of Robust Recovery Premature, James Galbraith Says. I know, I know. The sky is falling is what I will be accused of; but it is not what I am espousing. I'm just saying that we all need to be prepared for some extraordinarily rough times.
This is my opinion. The realization of what is already known by many will be brought to fruition in March 2010. At that time is when the numbers will be reported for the last quarter of 2009. Retail Sales for Christmas season will be reported and they will be horrid. The third leg down on the Adjustable Rate Mortgage collapse will take place, as these rates are reset and more people default on these loans. Finally, the first wave of the Commercial Real Estate bubble will hit, because of the retail slump brought about by the terrible Christmas sales, which is the time of year when most retail stores come to profit.
It doesn't make sense that the U.S. treasury has printed all of this cheap money that the people of this nation aren't getting any of. All we hear about is this Healthcare bill that you better come to understand is going to go through. It will be passed in this Senate this Saturday (or after a show, at least by the end of the weekend), then it will be reconciled into a monstrosity, by agreement of both Houses of Congress, and it will not be good.
Where is the bottom in the Real Estate market? If there are 10 houses for sale around me and I decide I need to move to a place where there are jobs -or- I decide I can't afford my house anymore, how do I sell it? What do I get out of it? Look at Detroit and some of the places out West. They are selling houses for pennies on the dollar. It is a buyers market, but the banks aren't lending. A true conundrum indeed.
The worst part is that the Financiers are able to take the money that has been printed and borrow it at artificially low rates of interest, set by the Federal Reserve, and invest it in foreign countries for a profit - (From Reuters: the Carry Trade). So the Wall Streeters and Foreign entities are profiting on free money that we, the American people, are going to have to pay the price for. Will the Financiers pay the price for the collapse of this bubble? Do they ever?
I ain't no Chicken Little, the sky is not falling. But American Consumerism is on its death bed. I honestly believe that whatever way you can be thrifty, you better start practicing those habits, because we are in for a ride.
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Friday, November 20, 2009
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7 comments:
Well spoken James. I watch Glenn Beck and listen to Rush Limbaugh every day. I encourage everyone else to do the same for learning the "truth".
Our Country is on a downslide.
This isn't about Rush Limbaugh or Glenn Beck. We have to leave them out of it to get people to listen. All I want is for people to start looking at the economic picture that is happening in this country. I want people to look at the impossible numbers (and statistics) that we face.
It's just the facts. We can't get around this debt. We can't continue to let our treasury be looted. We have to get back to sound money, both personally and as part of the government.
Frankly and sadly, I don't think we will. I think it will take a full blown depression to remedy the mess and it is a lot harder to get out of than it is to get into.
i am living in a depression now...how bad will it get. my cabinets are full so i wont go hungry but good lord what am i going to do for money. i just wish someone would give me the opportunity to work part time so i can make ends meet. i have talent but, who doesnt in this day and time.
I agree with the previous comment.
lets see, my house is paid for. i made double payments while i was gainfully employed. now though in unemployment i am going to struggle with property taxes and the fact that the value has not even increased $5000. in the last years. i cannot sell it because no one can afford to buy it. what good has all of my labor gotten me. i only wish someone would let me work, even part time. i have so much to offer due to years of experience in the work world. i am reduced to volunteer work...i am doing that so that maybe someone will recognize what i have to offer. where are we going in this area with so many good people suffering. does any one fathom an answer ?
I can empathize with the folks in these situations and what gets me is that some of the people who don't give a hoot about how they live (illegitimate kids, don't pay their bills, drug and alcohol abuse and more) get subsidized by taxes that people working hard pay. It's like we reward being irresponsible now. It's not just crazy it's obscene.
Food for thought:
As long as you see this country (or anything) "on a downslide" that's what you'll get. You "see" what you look for.
Healthcare: Something HAD to happen. It could not go on like it was. Now it HAS happened. Deal with it. ANY change is better.
Things are tough all over, but by GOD, DON'T WALLOW IN IT if you don't want to stay in it.
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