Saturday, 9 October 2010

Recovery, NOT.............from Rico

About one third of the US has a FICO score below 620 and cannot get a loan...under ANY circumstances...which has grave implications for any housing recovery hopiness being touted in the MSM.
- Add to that unsustainable levels of personal debt and a truly crappy employment situation, and things look bad not just for the residential housing market but for Commercial Real Estate and Retailers also.

It takes money to be a consumer, and if you have a formerly-known-as consumer driven economy that is broke, you cannot have a recovery. [They must have planted those hair-plugs a little too deep (Joe Biden) for you to have been gassing-on about this being the "summer of recovery."]

Adding more humour to the joke, now our FED is whinging that Americans are saving 'too much' (a paltry 5-6%) of their money and not spending it! So, it's not the fault of the economic Nobel Prize winners in Congress and on Wall Street that we're all in the economic soup, but it's all our fault!
- I guess the next logical (snork-gasp-chortle) statement from 'Plugs" after his famous "it's patriotic to pay taxes" would be "it's patriotic to spend money you don't have to save the system."

Meanwhile, back on planet Earth [and not Uranus where the Washington-Wall Street elites live] I call what we're doing monetary seppuku, quantitative Hari Kari.


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