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.

5 comments:

  1. The end result of the bubble are so complex and varied it is hard to see what will happen.
    High energy costs, debt, security costs
    trade imbalances. They all could spell disaster. I guess time will tell. Be vigil, careful and do not take anything for granted.

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  2. how soft in MD ?
    loudon co VA inventory has quadrupled

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  3. RE are somewhat less frenzied then earlier this year. Inventory is up somewehat. Not as much as Loudon County, VA.

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  4. You left out the falling dollar,
    social security coming due and
    medicare...The perfect financial
    storm!...

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  5. Great site. Couldn't agree with you more. The next president to steal, er win in 2008 is going to have buckets full of dubya's economic turd blossoms to shovel...

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