Friday, August 12, 2005

The Bubble Recession

Once the housing bubble pops, a recession is almost inevitable. Here are the factors that will contribute to a future recession:

  • High & Rising Energy Costs
  • Federal Debt & Deficit
  • Coming Housing Bust
  • High Consumer Debt
  • Large negative Trade Balance
  • Future Offshoring
  • Security Costs

So are there bright spots? Corporate profits are doing well, productivity is up. Nevertheless, the overwhelming negative economic factors will shortly ( within a year or so ) lead us into a recession. The unsustainable nature of our economy is astounding.