jump to navigation

The End is Near; Doom and Gloom, Oh My! December 10, 2008

Posted by shaferfinancial in Uncategorized.
Tags: , , , , ,
trackback

Well, well…..As the media pounds home the theme of a disastrous economy, and everyone agrees, there are little seeds of hope.  I have to be amused by the constant comments by economist working for banks and other finance companies who report an upcoming economic disaster of biblical proportion.  Are these the same economist that didn’t foresee the current recession and credit issues?????  I mean when have economist ever gotten anything right as a group? 

But I digress.  Take jobs, employment in the first quarter of 2009 (close enough to have some predictive power) is expected to rebound in many areas: Lafayette, LA (+25%), Houston Texas (+20%), Des Moine, Iowa (+16%), Rochester, NY (+12%), Washington DC (+11%) is a sampling from the latest Manpower Outlook Survey.  Sure there are some places in the country expected to decrease like Flint, Mich (-9%), Detroit (-7%), and Fort Myers, FL (-6%), but the overall expectation is positive outside of the car manufacturing,tourism, and construction.  And the stock market is bad isn’t it?  Except that there are companies reporting increasing profits like Apple, HP, Google, etc.  And housing is terrible, but the latest pending home sales index only dropped .7% from the month before, which was an improved month, surprising economist.  Prime foreclosure’s are still relatively stable at .34 Fixed and 1.77% Variable, while the 30 day delinquencies rate remains relatively low.  (This rate usually goes up in a recession) The two states making up most of the foreclosure’s, Florida and California, have seen huge job losses over the last year generally due to the construction/real estate economy tanking.  So even in the bad foreclosure data we see things aren’t as bad as one is led to believe, especially if you don’t live in Florida or California!

Yes, job layoffs are substantial.  But remember this happens at the end of a recession, not the beggining.  Now is the time to plant little seedlings that will turn into your wealth crop.  Keep your eye on your wealth building goals!

j0149055 

Don’t let the mass media get you down so you miss seeing the seedlings!

Advertisements

Comments»

1. Murray R - December 11, 2008

This is no ordinary downturn. After the biggest credit bubble in history, we face a correction on an unimaginable scale. Make no mistake about it: This is a credit-cycle bust that the government cannot stop. The losses are already catastrophic. And the economic indicators confirm that the massive unwinding is nowhere near finished yet…

2. shaferfinancial - December 11, 2008

Well different strokes for different folks. Don’t buy all this gloom and doom stuff, but time will tell.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: