Saturday, October 23, 2010

Here Comes Your Double-Dip.

Search this blog for "double dip" and you'll see I've been predicting one since before the "end of the Great Recession" was declared - because the structural problems in the USA's economy (and the world's) have not been fixed.

Here it comes. This looks an awful lot like the corner being turned. Housing prices are (ahem) "unexpectedly" falling off a cliff, and we're set to close more banks this year than last year (with two months left to go!)

I could be wrong. It could just be the collapse of demand after government artificially inflated prices with a tax credit (a.k.a. Cash For Clunkers round II) but -20% is a low number that will "unexpectedly" a lot of people right back into being scared to spend money . . . then the winter hits and nobody is buying houses, driving prices even lower, causing greater trepidation about the economy. The socialists in the White House can try to blow the bubble again, but this is known in sober economic circles as "kicking the can down the road." It ends up accomplishing nothing good while increasing our debt.

No comments: