Apr
20
Posted (Van Santos) in Business on April-20-2009

If one listens to the press, all of a sudden the economic world that was in total free fall all of two months ago is suddenly not that bad.  So, which is it?  Is the world on the verge of total economic collapse or are we all living in a world where we just might make it out alive.

I don’t know, I’m not an economist, but I will point out a few things and let you decide.

Foreclosures continue to rise while property values continue to plummet.  Not fall, plummet.  Some areas of the nation are seeing property values falling by nearly half.

Bank or America, JP Morgan Chase, Goldman Sachs and Citibank have all reported better than expected results but there is significant discussion on how and when to release the bank stress test results.  Doesn’t that seem odd to you?

Both California and North Carolina have record unemployment

General Growth Properties, the second largest shopping mall operator in the world, declared bankruptcy due to unmanageable debt and a loss of contracts.

Venture Capital investments are at their lowest in 12 years, this means new ideas are now being fueled… new businesses are not starting….

The US has lost 4,197,371 jobs since February 2008 and the layoffs continue in waves

For some reason Ben Bernanke sees positive signs in the economic situation and is “fundamentally optimistic” about where we are doing.

So, what do you think?

Maybe Bernanke and company is looking at information unavailable to the rest of the public but all that I see is negative.  I want to see true signs of recovery, I want to see that the nation – and the world – is turning around but I simply don’t.  I simply cannot believe that things have turned for the positive.  If the banks were strong – truly strong – the stress test results would be released without debate as to how to do so.  If things were bottoming – let alone growing – the layoffs would not be continuing at such a large clip.

Bottom line, for me, I think the worst is yet to come.  GM and/or Chrysler will go into bankruptcy, major banks will go under or be nationalized, and unemployment will continue to rise – I still believe 10% is going to happen this year.

So, what do you think? Am I missing something?

Related posts:

  1. Another Nouriel Roubini stock market and economic warning While I had originally doubted Nouriel Roubini, I have come...
  2. Talk about a mixed message on the economy… My views on the economy are, well, pessimistic at best and apocalyptic at worst....
  3. US investigators warn bank stress tests not enough Most people questioned the viability of the “Stress test” performed...
  4. The economic reality we live in I have no real easy way to begin this post,...
  5. Boy, what do you think this means – US to delay bank test results If you think back several weeks with me, you’ll remember...

Related posts brought to you by Yet Another Related Posts Plugin.


Comments:
OzSoapbox on April 21st, 2009 at 5:13 am #

To be honest I don’t know what to think.

I don’t have a mortgage and am debt free so I’m just saving waiting for it to come crashing down.

If you follow the media here it’s pretty much:

‘OH NO WE’RE IN A RECESSION!’

‘RECESSION OVER!’

‘OH NO RECESSION AGAIN!’

on a daily basis ad nauseum.

I actually want the world to fail a bit. A lot of people need a financial wake up call.

Van Santos on April 21st, 2009 at 7:20 am #

Well, first, congrats on the whole no mortgage/debt free thing. I have a mortgage that I’m vastly underwater in. My debt is student loans, so I am comfortable with that.

Your comment about the world failing a bit, I have to agree with you.

I feel if the economic climate were to suddenly turn positive for a long period of time people, as well as institutions, will continue on wasteful and unreasonable spending.

I am not wishing ill will or hard times on anyone, but people need to understand simply because the guy next to me has a 4000 sq foot house, that doesn’t mean I need 8,000 sq ft.

Without the experience of what we are going through, spending habits will go right back to where they were.

[...] [...]

Post a comment
Name: 
Email: 
URL: 
Comments: