1. Housing is underwater
2. Unemployment is high
3. The banks are in bad shape
4. The national debt is skyrocketing
5. Credit card rates are doubling
6. State governments are running out of funds
7. Congress has tripled spending
8. The consumer is broke
9. Fannie and Freddie need another 200 billion
10. The FDIC insurance fund is just about out of funds
11. The Federal Reserve owns 4/5’s of all the Treasury’s issued
12. Car production is way down
13. The stock market is up 20% from last year?????
14. Interest rates for home loans have never been lower?????
Then we have Congress trying to save the world from a financial meltdown. Not to mention unemployment benefits are now at 100 weeks. Banks are no longer foreclosing on homes that have been stripped. Congress has agreed to give Fannie and Freddie another 200 billion. The ”No upsided-down-homeowner-loan left behind” program is failing miserably. If you lied on your application to begin with, that problem is not going away.
I tend to agree the recession is over. From here, we start to feel the real pain of a full blown depression. My crystal ball has been fully functional with a miss or two since 2006, but in order to sell newspapers, you have to push the rosy outlook. People need to be told that things are getting better to cheer them up. Here's some "good news" from today's front page of the San Diego Tribune. The bad news is; there are a lot of people not buying into this. (Double click for a larger view)
The government's buy back of Freddie and Fannie real estate could be the straw that breaks the camel’s back. These government programs to get us back on track are like a hooker with VD—you get what you want today and end up getting what you hadn’t bargained for later. "Beware of