Wednesday, November 29, 2006

Optimist be Damned

I guess if we examine everything, real estate has to come back, Lucent will rise back to $100 per share. And every one will retire rich and give scads of cash that is left over to the kids. The retiree's won't have to spend their own money, they have Social Security and Medicare/Medicaid to keep them from dipping into their cash reserves.

The Wizard of OZ was a great movie, but reality is a different creature. Something has gone wrong with the system and its probably going to "fix itself."

There are a lot of people out there that are stretched out to the max with one thought, "Hold on things have to get better."

The question that comes to my mind, is what will get better? Crime is down 25% in LA. What's that mean? The cop's aren't any better, there are less young people. So with less young people entering the work force, the unemployment rate drops.

Hey unemployment is low, ergo the economy must be doing good--WRONG! Actually from here in San Marcos, English is a second language at Taco Bell and other establishments. It looks like immigrants are filling the work slots because of the shortage of first time young people entering the work force.

So what happens next? Nobody that's young can afford to buy a house. Nobody American is around to fill the vacant job openings. Who's going to buy these homes priced at one half mill to one mill?

Right, reality is just around the corner, the trouble is, are you standing on the right corner?

No comments: