Recession

[dcbogey]

You're right. The US govn't has learned a lot about managing the economy from the previous recessions. It's unlikely that we'll get the major recessions that we used to.

Also, don't forget, this is an election year. The feds will be doing everything they can to keep the economy floating as high as possible, spending money, keeping interest rates artificially low, etc... The real downturn will probably start in 2009.

The problem is that people are basically sheep. This is why we have the panic selloffs and such. There is still some momentum in the economy still until the end of the year, (presidential election).

I would like to be able to say I agree but the conspiracy theorist in me sees a slightly different outlook. IF the GOP reads the tea leaves and sees that the Dems will take the presidency and more control of congress they could decide to hand them as big a mess as possible - a kind of scorched earth strategy.

I do agree that people are sheep - the emergency rate cut seems to have made people think everything is just fine. A fool and his money are soon parted.

 

[Esco!]

The credit situation is scary, frightening really. Mortgages were only the tip of the iceberg (being the largest single debt element in most households). As Top Northerner points out, credit cards are a looming risk.

I recall reading an article about auto loans as well. Apparently, rolling loans from one car to the next has been allowed in the US for some time. (e.g., if you owe $10,000 on your current car, the balance is simply added to the purchase price of your next car loan). So, now you have people who own $25,000 worth of car(s), but owe $40,000+ ?!?!?

Unreal. There's a rude awakening in store for a lot of people.

Wasnt there a guy on 60 Minutes warning about this??????