Happy New Year everyone!
I started this blog in May of 2006 and from my perspective, it should take two years before most people will realize that we are in a major depression. Well, we are almost half way there. It's kind of like a rear view mirror perspective, we'll see it only after it's behind us.
Real estate is not doing very well. I saw a new word the other day that was referring to the current status of property for sale "fugly." Two four letter words combined to express a diagnosis that is a bit on the strong side.
A lot of the issues point to problems further ahead, foreclosure's, refinancing and bankruptcy. These are all real estate related.
The organization that I work for has installed over 2 million dollars worth of computer equipment last year, and all of it says "Made in China." Is there anyone in the United States producing anything besides food that is making a profit?
Then you hear the speculation of the DJIA going to 20,000. I think that we have a market where speculation is King and Reason has no Consort. Very few companies even pay a dividend that would support their current price on the DJIA. Retirement time is close for the baby boomer's and if it doesn't pay a dividend, why hold it? Questions abound unanswered. Why worry the market is going up, Right! "Up what?" is question to ask! Your IRA could have a sick call like back in 2001. The 50% haircut wasn't about hair salons.