by Jeff Davis
The American economy keeps on getting worse and worse–but somehow we haven’t had the big stock market crash that everyone associates with a Great Depression. It’s like a falling skydiver who jumped out of the plane without his parachute. He sees the ground rushing up at him, and yet it just goes on, and on, and on…an endless fall.
California and the federal government are essentially in a permanent borrowing mode. Eventually the people loaning them money (the Chinese) will realize that California and the Obama regime can no longer pay back any more loans and the loans will stop and maybe then we’ll see the long overdue crash.
An article from Marketwatch reports: “If you thought the housing crisis was bad, think again. It’s worse. New data just out from Zillow, the real-estate information company, show house prices are falling at their fastest rate since the Lehman collapse. Average home prices are down 8% from a year ago, 3% over the quarter, and are falling at about 1% every month, according to Zillow. And the percentage of homeowners in negative-equity positions — with a home worth less than its mortgage — has rocketed to 28%, a new crisis high. Zillow now predicts prices will fall about 8% this year and says it no longer expects the market to bottom before 2012. ‘There’s no way we can get to flat, from these depreciation levels, in the last nine months of the year,’ says Zillow economist Stan Humphries. ‘Demand is a lot more anemic than we had previously thought.’ “
More people join the ranks of the long-term unemployed every day and many Americans have settled for McDonald’s and temp agency jobs since that was all they could get.
The article continues “When in 2012 does Zillow see the market bottoming out? Humphries won’t say. What a foolish boondoggle those tax breaks for home buyers have turned out to be. The government spent an estimated $22 billion between 2008 and 2010 on tax breaks to prop up the housing market. All it achieved was a brief suckers’ rally that ended last summer.”
But…but…but…I thought we were supposed to be in a recovery? Doesn’t the liberal media tell us so every night? The mainstream media wouldn’t…lie to us, would they?
It looks like we’re going to learn that you can’t spend your way out of a Depression and you can’t throw an endless party on a credit card without ever having to pay off the bill. Too bad no one checked Obama’s college records before he became president, then maybe Americans would have had a better clue he was the wrong man for the job.