Housing prices are in a near-freefall in some regions of the country. In some of those places, it might be safe to assume that nearly everyone who purchased a home in the last couple of years is now underwater on their mortgage.
The economy shrank the most it has since 1982 and consumer spending has reached a 28 year low.
Even the rich people (besides those who lost a shitload of money in the MAdoff Ponzi scheme) are spending less.
But the economists, who didn't see the current disaster coming, now see signs of a recovery beginning this summer.
I hope they're right. But if we are about to slip into a deflationary spiral, as some fear, then it could get a whole lot uglier.
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Tuesday, December 23, 2008
1 comment:
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The Federal Reserve has printed up $3 *trillion* in fresh dough that it's basically helicopter-dropping onto the heads of every financial institution and big company in America. The problem: *SEVEN* trillion dollars in housing wealth just evaporated out of the economy.
ReplyDeleteSo deflation is decidedly still a possibility. And idiots like those morons of the Party of Hoover demanding wage cuts of American workers in exchange for "bailouts" (loans to auto makers) are just feeding deflation. But hey, what do they care, it's not as if the auto workers are, like, millionaires or anything. If they were, then it'd just be all the dough they asked for, no questions asked. Class warfare, anybody?!
My captcha word: poling. Hmm.
- Badtux the Economics Penguin