ChickenLips

A Reality Check on U.S. 'Economic Recovery'

My mortgage becomes variable in March and I CAN'T qualify for refinancing even if I wanted to, trust me I've been rejected. My payments are current but I don't know what's going to happen next year when my rate resets.

How is it beneficial to the economy and society if I foreclose on my home and walk away? How come the wealthy bank owners get bailouts but there aren't any refinancing programs to help people like me keep their homes and society stable?

I guess the economy and the stock market CAN grow if the middle class is decimated. At least that's what my government is telling me.

When Will the Market Turn Negative Again?

Population growth will get us out of this mess? That's amusing. I guess all these babies come out of the womb with wads of cash attached to their feet. Babies do demand more services and products, but if their parents are broke and don't have any disposable income, does an increase in population really help the economy? Look at third world countries.

Seriously, what concerns me the most is that most of my laid off friends are draining their 401k accounts to supplement their weak unemployment benefits. According to our government statistics, nearly 10% of the population is unemployed. If the unemployed drain their retirement accounts (which we all know what is happening since their incomes are falling), that's 10% more people who will definitely be dependent on the government in the future too. Where is the recovery in that? The stock market has to dip soon, this foolishness can't go on any further.

How High Will Unemployment Go?

Why do all these analysts expect a recovery in a couple of months? For the past year, we have been reading articles just like this one, all we need is a "couple of more months to recover". This recovery will take years and requires long-term planning, I hope Obama's administration is effective in their long-term execution. But it appears to me that this administration is going to be yet another conservative disappointment. Same ol' BS.

Are New Market Lows Likely in 2009?

We still haven't seen the effects from post-Christmas layoffs. Don't forget, The Big 3 are still collapsing. Corporate earnings will decline rapidly this year as more and more people lose their jobs and tighten their spending. We all want to be optimistic, but the fundamentals don't support it yet.