Thu
Nov
08
2007
Going down...
With the dollar losing so much value and prices in the U.S. rising the American consumer is getting poorer by the minute. Combined with rates going up regardless of what the Fed does means inflation and rising prices. Then the move afoot for international bankers investing globally instead of the U.S. explains the DJIA falling while global markets overseas are rising. A paradigm shift has occurred where the U.S. is no longer among the best places to invest.
This isn’t just a subprime meltdown, although we have a major Enron “like” situation there but a housing bubble burst combined with the above economic sentiment.
I do not attribute the entire domestic U.S. economic issue to the housing bubble bursting but is definitely the rug pulled out from under the U.S. consumer. It simply proves the U.S. has fundamental accounting issues that were temporarily patched by malinvestment and widespread credit availability ignited by a Fed instigated rate cut to 1% a few years ago. “Kaboom!” It finally blew up. Should anyone be surprised?
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