Rolling head-long into the new decade, we are now only a few short weeks from entering into the forth quarter of 2010. The big question on the minds of millions: What is on the economic horizons? What is the financial outlook for the 4th quarter of 2010 and beyond? And, how will the economy effect you and your family? Let's take a look at these questions and more in this, A 2010 Financial Outlook: The 4th Quarter Report.
We are currently living in perhaps the most dynamic times in the history of our planet. Let's face it, our world is a mess. Physically, emotionally and financially.
Despite what governments around the globe would have us believe, the economy is not getting any better. Ever since the false, taxpayer funded, multi-trillion dollar bailout of 2008-2009 got underway, there has been no "Real" economic recovery. Facts are, we never really left the recession.
It's time we all woke up and read the writing on the out-house walls. The sugar high we've experienced over the last 18 months is over. Much like the false recovery experienced in 1931 - 1932, we will soon revisit new lows in the stock market like never before seen, ultimately breaking through those as well.
There is no denying we are treading on dark and dangerous economic times. Many now believe we have entered into the next phase of the $50 trillion wealth transfer that some economists have been predicting for years.
Soon, the focus is sure to shift to fears of global sovereign debt collapse. Euro-land, Japan, the UK, and ultimately the U.S. will be unable to pay their debts. This is when we will find out if the powers-that-be attempt to end this Depression in the same manner they did in the 1930's. The question remains. Who will become this generations Hitler? Who will take the role Germany played during those dark times?
It is apparent, businesses from all industries, and individuals alike, are now tip-toeing around on financial eggshells like back-stage ballerinas, waiting to see what the orchestra plays next.
Just in case you haven't been paying attention, the stock market is currently poised on the edge of yet another downward spiral into the murky abyss of sub 10,000. As this is being written, the DOW has lost another 140 points. Next stop, 9,600? Who knows how low we may go from there.
On the "Home Front", despite record breaking low mortgage rates, news this morning from The National Association of Realtors indicates existing home sales for the month of July fell 27.2%. Sales are now at the lowest level since the total existing-home sales series launched in 1999, and single family sales - accounting for the bulk of transactions - are at the lowest level since May of 1995.
No one can seem to qualify for a new home loan or banks just won't give them up. It's either that, or folks don't dare spend what little money they do have squirreled away in fear of what may be around the next bend.
And what about all the new jobs our leaders so boldly promised just months back? According to President Obama just a few short months ago, we were well on our way up "the road to recovery". Where is all that promised relief? Who sucked the breath out of the federal economic recovery plan this time? Or, was it simply full of hot air to begin with?
As if this weren't enough, while the unemployment rate in the U.S. continues to teeter on the edge of double digits, the number of under-employed is now reaching levels never before seen. Record numbers of folks, all around the world, are working for far less money than ever before. Making ends meet is now as hard for many as teeing off with The Pope himself. Take a closer look at these unemployment numbers you'll find, within some industries, unemployment figures are actually closer to 20%, or more. Scary stuff when you consider how many folks aren't even counted.
Many are now forced to cash in their retirement accounts just so they can put food on the table and pay the electric bill. Personal bankruptcies are spiking and more personal credit accounts are going into default than at any other time in history.
So what does all of this mean? What does a simple carpenter, with a head full hope and a heart full of hate, do about it anyway?
Oh, and how about this little news flash? Now that the federal government is considering massive principle reductions - forgiveness - on underwater mortgages. Many can soon expect to experience an overnight write-off to their home an property value the likes of which you've never seen.
Think about. If your neighbor is underwater on their mortgage, now the government steps in, essentially re-appraising the value of their home and "re-valuing" it. Now, what do you think will happen to the value of your home? Yep, you guessed it, the value of your house just fell through the floor joists like a lead brick headed to the bottom of the deep-end.
If you think the Ground Zero Mosque, or even Obama Care, is a bust with the public, you may be surprised to find that a whopping 82% of those polled believe that "principal forgiveness" is a horrible idea, bordering on the edge of lunacy.
However, since there appears to be zero limit to the amount stupidity that we are witnessing from this administration, don't write this possibility off. In fact, you should probably be surprised if they don't do it.
And get this! Word on the street, now there may be another lame brain idea in the works. Believe it or not, the next "innovative idea" coming straight down the pike from the Washington, "Bankrupt The U.S. As Quickly As Possible" playbook, could be across the board credit score increases.
What the? That's right. Assume that your credit score is 600, which means you can not buy a house unless you make a 30% down payment. Well, with this new idea, your credit score could immediately be raised by 20%, giving you a score of 720. Now, you can run right out and buy that home with just 5-10% down, possibly less, no matter what it's worth.
There's not enough time in the day to go over all the problems associated with this cock-screwed idea. Even an old wood butcher can see the slippery slope this will lead to. Let's just say, it would cause a massive drop in the value of the U.S. dollar overnight.
This crashing dollar, along with a complete loss of confidence in the U.S. economy globally, would, of course, cause real estate prices to plummet even more across the board. Subsequently, we would have a 20% increase in the value of gold and silver. That said, it now seems apparent, we're headed there anyway.
So there you go. A 2010 Financial Outlook - The 4th Quarter Report in a nut shell, straight from the blurry eyes of an old, worn-out, wood butchering, Colorado carpenter.
Deixe o seu comentario
Post a Comment