Wow, can you believe the Fed riding in like the night on a white horse and throwing $200 Billion dollars at the credit markets trying to stave off a market crash. Whewwwww, it worked for all of 24 hours.
For all you surfers out there get your surf boards waxed up because not only is the surf up in the credit crisis ocean, but there is a Tsunami building and it is going to be huge! Everyone has been thinking that all this turmoil would roll past in a short period of time, but what they failed to take into account is that we are in a perfect economic storm here in the US and it is mostly, okay alllllll man made. What you say how could that be? I thought the credit crisis was over, what are you talking about?
As I said, the surf is up but we have only begun to see the long term effects of the credit crisis, and only 30% is even visible now. Drive down streets anywhere in America except for a few micro markets, and what do you see? For sale signs and for sale signs by the banks, house after house. Seriously take a drive thru different neighbor hoods and; you will see exactly what I am talking about. The number of homes falling into foreclosures, or short sales is not subsiding it is increasing! That means that the economic wave is still building and gaining strength. It seems that everyone thought that the credit crisis was going to be this little blip, and be done, oh contraire, the size and the magnitude of this economic tsunami have not been seen before in US history. Wow, that's right in US history, the long term economic effects are going to be deeper and longer lasting than the good old days we refer to as the "Great Depression" (by the way, what was so great about the depression) read more at www.davidharper.info
Let me hit a few high points of the current perfect economic storm; First, we have the "man made" credit crisis that occurs as American last fall was wallowing in a recession, and kicked us deeper into the mire. Secondly, we have consumer confidence at an all time low, spending today is dropping like a rock, but not because of the credit crisis because; thirdly, the cost of gasoline at the pumps is crushing the average American household, think about the impact of filling your tank, and each time it costs $60 to $80, this has chewed up any extra money people had to spend at Wal-Mart, its gone to the oil companies. So this week a new record, a barrel of oil surges over $107, and this is only greeted by great glee by the oil companies reporting record profits. Fourthly, the dollar isn't just floundering to other currencies it is getting hammered, losing ground on a daily basis and probably will stay that way for the foreseeable future. Now take all this into account and look at the poor American investor losing his hard earned pensions in the stock market and well known funds like Carlyle Capital bond fund going out of business and shutting the fund down.(Hmmm, I thought you couldn't lose all your money in a mutual fund, sorry)
So I could go on ranting and raving and I have only scratched the surface, but let's be really clear, the Tsunami is coming the wave is building, we are going to see much more on the sub prime credit crisis than you will ever want to in the coming months. So in conclusion, wax up your surf board even if you don't surf, because there is a huge economic tsunami building right now in your back yard, so you might as well enjoy the ride otherwise you will just be crushed into the bottom of the economic recession.
Cowabunga Dude
Tune into the Money Matters Network show hosted by David Harper on Real Coaching Radio Network, Mondays at 2:30 PM Mountain, 1:30 PM Pacific, 4:30 PM Eastern.
David Harper and Coach Steve Toth
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