Friday, May 29, 2009

Foreclosures bottomed?Not a chance!

Here is a graph used by many to predict the future economic meltdown still to come.Obama must try to sell the public that his policies are starting to take hold and recovery is around the corner.This graph depicts some of the hard reasoning used to discredit Obama.
These figures reflect the built-in roadblocks to any recovery.The pricetag for Government being fiscally irresponsible is wide ranging and guaranteed to stunt growth.
The sub-prime mortgages may have run their course,but the ARM resets coming up will take center stage.12% of mortgages are currently behind.Inflation has already started in some segments.Gas prices are on the rise.Interest rates must rise at some point as Bernanke tries to curb inflation.We face the VAT tax which will affect every American with higher prices.The carbon tax is assured which will raise energy costs across the board.
Obama makes no bones about the fact that people must spend money to enact recovery.People are starting to save more now.Credit tightening due to regulations is underway.There are simply an overwhelming number of obstacles taking place to kill growth.None of it is a surprise to those who have watched the debacle unfold.Being right on this one doesn't make you feel one bit better as the long-term damage is nearly impossible to forecast.More to come...

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