Words of Advice:

"If Something Seems To Be Too Good To Be True, It's Best To Shoot It, Just In Case." -- Fiona Glenanne

"Flying the Airplane is More Important than Radioing Your Plight to a Person on the Ground
Who is Incapable of Understanding or Doing Anything About It." -- Unknown

“Never argue with stupid people, they will drag you down to their level
and then beat you with experience.” -- Mark Twain

"Stay Strapped or Get Clapped." -- probably not Mr. Rogers

"Eck!" -- George the Cat

Tuesday, December 23, 2008

What About Those "Sound Fundamentals?" Chimpy? Grampaw?

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.

1 comment:

BadTux said...

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.

So 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