Consumer Confidence Hits 28-Year Low
A report issued today by University of Michigan/Reuters showed that consumer confidence fell to a 28-year low in April. The drop was blamed in part on rising concerns about higher gas and food prices. Consumers, who fuel two-thirds of national economic activity through their purchases of goods and services, were in a bleak mood. The report stated: "Record numbers of consumers viewed the economy in recession and saw little hope of recovery anytime soon,". Also, The National Association of Home Builders reported Thursday that its monthly survey of builder sentiment edged down in May to a reading of 19, just above the all-time low of 18 set in December. San Diego County California real estate blog
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Consumer demand will drop. Unemployment will rise. The US will go into a recession at best, a depression at worst. Expect first stagflation (high inflation and high unemployment), both because of the increased price of imports and deliberate pump priming by the Fed, then deflation, as asset prices collapse so hard they take everything else with them. The other likely scenario is stagflation followed by hyperinflation. Formal inflation numbers put out will become not just a joke amongst market-watchers, but amongst the actual population. Same thing with unemployment numbers.
Lilly
San Diego California Bail Services
The Asian economies are not going to “decouple”, they are going to have their own financial crises and recessions. Yes, this includes China.
Paula
San Diego Vacations & Tourism
Peter Lynch has been quoted as saying the following:
“You get recessions, you have stock market declines. If you don’t understand that’s going to happen, then you’re not ready, you won’t do well in the markets.”
Peter understands this is reality. Do you? Just as there are ups and downs in the stock market, there are ups and downs in the real estate market. Welcome to reality!
Kelly
San Diego County Real Estate Agents
We are facing turbulent times with the credit crunch / liquidity crisis, a very possible recession, hedge funds collapsing, small & large banks experiencing major loses and the ups and downs of the bond and stock markets.
Kyle
San Diego County Real Estate Brokers
Stagflation is the problem going forward, not recession. If our gdp is 70% consumer spending, there is no value added to the society. The big muckimucks of wallstreet should consider how to invest in areas that increases value and not just consumer spending!! That is what will take out of stagflation.
Chris
San Diego County & Mexico Dentistry