"Today I am going to do something really amazing. I am going to tell you that in my opinion the U.S. economy has not entered a second recession; it never came out of the first one. Well, before you professional economists start writing me that the Webster’s definition of a recession is two consecutive quarters of negative growth I will simply say for who? Indeed there are many Americans who have been so economically ravaged by this crisis that they have not lived through a recession - they have endured a depression. A Gallup poll that was released in April (when the DOW was 800 points higher than today’s close) said that 29% of the people polled didn’t care what the definition of a recession was. They said they were in a depression. Add to that, another 26% polled said that they felt they had never come out of the original recession.
Please ask yourself if it is any wonder that most Americans believe that an economic downturn is still in progress? One only has to look around to see all the evidence they need to draw that conclusion. Home prices are at levels we have not seen since 2002 and add to that in many parts of the country like Florida, California, Nevada and Arizona values of homes have dropped a staggering 50 percent. According to the National Association of Realtors home prices will likely drop another ten 10 % nationwide. They also reported a staggering statistic. If you had bought a home under the program set forth by President Obama that gave you $8500.00 towards the purchase of a home, and if you had put down an additional 20% towards the purchase of the home you would now be underwater on your mortgage.
It is painfully evident to most average Americans that there are signs that a full blown recession is firmly in place. I guess it is harder for the myriad of professional economists hired by the Fed to see the forest for the trees..."
at http://www.marketoracle.co.uk/Article29679.html
Please ask yourself if it is any wonder that most Americans believe that an economic downturn is still in progress? One only has to look around to see all the evidence they need to draw that conclusion. Home prices are at levels we have not seen since 2002 and add to that in many parts of the country like Florida, California, Nevada and Arizona values of homes have dropped a staggering 50 percent. According to the National Association of Realtors home prices will likely drop another ten 10 % nationwide. They also reported a staggering statistic. If you had bought a home under the program set forth by President Obama that gave you $8500.00 towards the purchase of a home, and if you had put down an additional 20% towards the purchase of the home you would now be underwater on your mortgage.
It is painfully evident to most average Americans that there are signs that a full blown recession is firmly in place. I guess it is harder for the myriad of professional economists hired by the Fed to see the forest for the trees..."
at http://www.marketoracle.co.uk/Article29679.html
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