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Posts: 4167
Join Date: Jul 2007
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This article has a video with it that's pretty interesting. It's a lot of doom and gloom in a way.
http://finance.yahoo.com/tech-ticker/article/176478/%22Worst-Is-Y ...
Quote:
There's no question the American consumer is hurting in the face of a burst housing bubble, financial market meltdown and rising unemployment.
But "the worst is yet to come," according to Howard Davidowitz, chairman of Davidowitz & Associates, who believes American's standard of living is undergoing a "permanent change" - and not for the better as a result of:
* An $8 trillion negative wealth effect from declining home values.
* A $10 trillion negative wealth effect from weakened capital markets.
* A $14 trillion consumer debt load amid "exploding unemployment", leading to "exploding bankruptcies."
"The average American used to be able to borrow to buy a home, send their kids to a good school [and] buy a car," Davidowitz says. "A lot of that is gone."
Personally, I think our biggest economic issue right now is a President that is not only spending us into a oblivion for political reasons disguised as a stimulus bill, but it's all the negativity he keeps pushing.
If I was President I'd be talking about all the people that still do have jobs. I'd be talking about the hopeful signs that the economy is on the right path instead of feeding this negative economic frenzy. The more people horde their money the worse things are going to get.
That's not to say people shouldn't save some money they most certainly should, but no spending in the marketplace is definitely going to take it's toll. The best case scenario is where I save all my money and everyone else spends theirs except on things I want so that product gets cheaper before I buy it.
__________________Lucas McCain the Rifleman: A man doesn't run from a fight, Mark...but that doesn't mean you should go running *to* one, either.
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