- Existing housing and new housing are doing poorly, indeed one at historical record lows, and this is despite government subsidies;
- ARM mortgages are reaching a high later this year, late summer, and this will lead to massive foreclosures;
- State and local governments are hemorrhaging and in dire need of cash;
- The Fed is ending certain programs that supported the U.S. Treasuries and, SURPRISE!, Treasuries are having a very bad week;
- Greece is still unsettled on what will happen there;
- Consumers resumed spending the last month or so but their debt levels are still very high, which suggests the spending is not only sh0rt lived but foolish;
- With Treasuries having massive problems there are going to be some big problems supporting our massive deficit;
- China is in a major economic bubble;
- Europe is in significantly worse shape than us between all the PIIGS;
- And the list goes on and on . . .
I am simply not yet seeing the light at the end of this tunnel. Everything I have seen has been government dollars (as in taxpayer dollars) to stimulate spending or to subsidize idiots. Either way it has not led to any sustainable progress. In my opinion, we are in a world of hurt. What I cannot tell you, given all the foolish government spending, is when. I suspect it will come to rest this Fall. We will see. It could be years away.
Disclosures: none
RI
