As more and more people buy into the hype that there is some sort of financial recovery I would like to point out a few things:
* Right now, today, more people than ever in the history of The United State of America, are NOT paying their mortgages.
* There are more homes which have already been foreclosed on being held off the market than have actually been brought back on the market and sold. What does this mean for future supply and therefore pricing?
* BofA is talking about going from it's current level of 7,500 foreclosures completed/mo now to 45,000/mo by the end of the year! Again what is the future of supply?
* Tax credit just expired, rates keep sliding up and now lending guidelines are going to be tightening again. What impact will this have on demand?
* These people are instead using some of this money to buy other things which creates the illusion that they are better off financially than they really are. Where will this pattern of spending more than we are earning end up?
* The government and the media report stronger retail sales, increased auto sales, etc - Is this because every single day more and more people are choosing to ignore their mortgage payments and instead spending these saved dollars elsewhere?
* Europe is a mess, many of the countries there are edging ever closer to the much publicized situation Greece finds itself in. What happens when these dominoes start to fall?
* The European issues are minuscule when compared to those we have right here in the United States. Do you think Ouch! has been right for all these years saying that we are moving towards "The Former United States of America?"
* We are growing ever closer to the day when we will default on our debts to the rest of the world. What will happen when we can't pay our bills, social security fails, medicare fails, welfare goes away, pension funds fail? Or will we first try to throw even more money at these problems and thereby create hyperinflation?
* Many states are starting to realize that their citizens are paying twice or more in federal taxes what the state and it's citizens are receiving in real benefits. With the states struggling to stay afloat financially, how long will it be before they stop sending $2 off to DC for every $1 of benefit???
* There is an ever growing movement of those who are disgusted by how wasteful our government has become. How long will it be before someone rallies this group behind the FACTS that our baby boomers allowed us to get into this mess, now they want services and feel entitled to have others foot the bill?
* When will people simply say "the hell with it, I'm not sending one more dime to any of the large financial institutions, insurance companies or the current government?"
* What if there was a large group who simply stopped working to support others and instead pushed for a system wherein those who created the messes we have today were held accountable?
Ok, Mr/s Rocket scientist/brain surgeon - are we really in a recovery?
