The Common Man, Key To Recovery
http://news.yahoo.com/s/ap/20090816/ap_on_bi_ge/us_wall_street_week_ahead;_ylt=Ar8g9i0IorQKYkLhyLW5t7iyBhIF;_ylu=X3oDMTJ1bW5jY3BuBGFzc2V0A2FwLzIwMDkwODE2L3VzX3dhbGxfc3RyZWV0X3dlZWtfYWhlYWQEY3BvcwM1BHBvcwMyBHNlYwN5bl9oZWFkbGluZV9saXN0BHNsawN3YWxsc3RyZWV0c2U-
Stimulus bills and other lofty initiatives have now been set aside. Wall Street and the rest of the country are now looking up to the average man or woman on the street to loosen his or her purse strings. This is not surprising. The United States is a country where 70% of all economic activity is dependent upon consumer spending.
Some segments of the economy, earlier terribly bruised and battered have now started sprouting green shoots. Housing being one of them. Though still beleaguered by high foreclosure levels, hope seems to be lighting a candle in this segment. For the rest to happen, the shopper has to break free. So we have an interesting situation, where Wall Street pundits are looking towards the average shopper for salvation!
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The housing "recovery" is an artifact of despair, not prosperity. This isn't the Smiths buying their dream house. This is the Smiths having lost their dream house, and now some investor is buying their dreams at an auction for pennies on the dollar.
ReplyDeleteIt's like July's "lower" unemployment. 247,000 more people out of work, but because so many hundreds of thousands of people MORE than that had benefits expire and quit even looking for a job because things are so bad, they got dropped from the calculation. So unemployment get "better" by discounting and invalidating hundreds of thousands of terminally out of work people.
These are the kind of green shoots we are seeing today. green shoots ripped from the hide of the American people.