Saturday, July 29, 2006


It really could be the perfect storm hitting the economy. The housing market, combined with extravagant federal government spending, has really kept the economy going these past few years. It's done so both by providing a lot of construction jobs and also by providing people with easy credit as they pull equity out of their homes. With the construction market slowing down there are going to be a lot of out of work skilled workers whose skills won't necessarily get them jobs in other sectors. With stagnant or falling home prices people won't have that easy credit anymore. And, with ARMs and no interest loans set to reset in a massive wave soon...