Wake Up! Economic Catastrophe Ahead
America is in a dire situation with our economy imploding and the traditional tools with which to fight the crisis unavailable due to fiscal mismanagement. We are approaching a tipping point, yet nobody seems to be discussing these issues, focusing instead on tears, nuance, and innuendo. The Dow is down another 100 points this morning and over 1200 points this year-that’s in 3 short weeks. The stock market is reacting in part to the collapsing housing market and a report this week showing that new home starts are down by more than a third. Food costs are soaring as we see the impact of $100/barrel oil finally working its way through the economy. Our currency is collapsing and no longer able to withstand our countries irresponsible fiscal policy. 
The falling dollar is inflationary as it drives up the cost of imported goods. With banks mired in the sub-prime mortgage crisis and unwilling to loan money, real estate prices continue to drop with those combined factors causing foreclosures to mount. Add to that witches brew the rising unemployment rate and we have some real trouble on our hands.Rising food and energy costs, coupled with insecurity over the economy and employment prospects, coupled with declining equity and the inability to tap into our only form of savings-our real estate-to offset these forces is having a chilling effect on consumer spending-the engine that has driven this economy for several years. So we’ve heard this all before, right? The Fed will cut rates, stocks will rally, housing will pick up, and all will be like before. Lets just say Perhaps Not. Read more
