GREAT TIMES ARE COMING, THE RECESSION IS OVER, BOOM TIMES AHEAD....OR NOT!

I was watching a financial news show this morning while eating my fruit and oatmeal. To the shock of the regular hosts, the guest who was a person of substantial past financial clout and a co-president of a major investment firm shocked them.

He saw nothing in the future indicating a recovery, totally contradicting the news of the day. He also added that he thought that the mortgages that are now owned by government agencies ( 60% of all mortgages) will be showing very high default rates next year and into the future, thus causing more financial problems for the economy.

They sat there, mouths open, wondering what to say.

He then added that with tight credit for business, and tight credit for consumers, we can kiss the recovery good-bye. More shock! One of the hosts then said how people had their credit lines frozen or decreased on the credit cards...and it all spiraled down from there.

Is this the real forecast, or is this not?

If we analyze closely the numbers in all categories of consumer spending, this guess may be quite correct.

All the major indications of activity have slowed down...you name it, housing starts, housing prices, factory output, salaries, -people working less, more part times who can not find the additional part time job, etc....does that foretell an economic boom or bust?

Lastly, the government from the federal to the state to the local level is seeking to raise taxes to make up budget shortfalls, a move that has historically been proven to kill or slow down any economic recovery.

What indicator is going to start the recovery?

None. However, watch out for bargains in all the key assets like purchasing that vacation home, or a new home or a resale home for less than you expected, if you have a means to finance it.

So, depending on your financial position, this may be a great time for you...or the worst time......