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Whispers of a Recession... I read part of the paper this morning and the headlines for this area were.. Whispers of Recession.. Lee County, has been one of the hardest hit areas in Florida. There are more foreclosures and higher unemployment rates, so much so, that it is reported in todays paper there is an increase in home invasions and robberies. The local paper quotes, Ray Kest, an economics professor at Hodges University in Fort Myers, that says he believes we are headed for a recession. He and a class he teaches for a MBA program spent the summer tracking various economics indicators. Each one of them shows a trend downward and they all show an up curve from 2003 to peak in 2005, then starts going down slightly in 2005 and a big free for all in 2006. They are all down except foreclosures. ** Foreclosures reached an all time high of 1,045 in July, more than three times the 299 from a year earlier. ** Unemployment rate was 4.7 percent in July, a total of 13,900 people were out of work! Compared to the 3.2% a year earlier, July's rate was the highest since September 2003 and above the National rate of 4.6% and the Statewide rate of 3.9%. ** Florida is a huge market for growth in the building/construction industry, but banks and other lending facilities have stopped giving loans for the most part and construction companies are going under. A total of 190 permits for single family homes was issued in July - down 77% from 833 a year earlier, and a sign there will be less home construction coming in the future months. He was quoted as saying .. it is probably more broad spread than what we're looking at on the surface, and deeper than what we want to believe. This has touched a lot of folks and it's going to get worse before it gets better. He believes it will be the end of 2008 before conditions turn around. I know speaking from family members experience that construction is so bad.. a once over worked employee has had to look for another company.. once found and hired.. just a short few months later that company went under..and now is on his 3rd company. Another family member who worked in construction found himself laid off and having to go to Georgia for work... Even the stock market have been pretty bad lately.. Things look pretty scary at times and not being educated on the subject - I was wondering what your thoughts and ideas on this subject are - Do you think we are headed for a recession? Or worse maybe? And what does that mean for our future?  ___________ Find the humor each day holds.... Gina |
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9/2/2007 11:25 am |
Recessions are cyclical, The downturn in building and foreclosure being high is a direct result of the ones who got rich off the huge increase in building and those stupid mortgages that allowed some to buy homes with nothing down using future increases in home values (future equity) to offset down payments and those really foolish flexible interest rates. So many of those mortgages are the ones that are now in default because time to pay the piper has arrived and incomes have not caught up to baloon payments and it is all a mess and the ones in foreclosure have no equity so it is very easy to walk away from their homes. I still keep asking did anyone think this was not going to happen? I personally think that those who got so rich off this sceme should be the ones who have to pay to bail us out of this problem but of course it will be the federal government that pays and who is the federal government (YOU AND I!) And I of course are so happy to have to see my hard earned tax dollars used in such a way aren't you?
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9/2/2007 11:43 am |
Traditionally, Canada has echoed the rise and fall of the U.S. economy, but Canada's economy is padded by our strong commodities market which is being bolstered by India, China and other developing third-world economies. Without that, we would be in a recession because of the drop in the U.S. housing market and loss of manufacturing jobs because of the high Canadian/low American dollar.
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9/2/2007 1:58 pm |
With world population explosion as HopSkinRun suggest.......a party that advocates more homosexuality would be Ideal........Fearing over population...and no food....and no water...I hereby declare everyone should become a homosexual Phoenix
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9/2/2007 4:00 pm |
You think its bad now? Return with me now to those thrilling days of Jimmy Carter. Try buying a house then Try repaying your 18% auto loan try feeding you family of 4 with double digit inflation. Todays economy is a streamlined jet compared to what it was back then. "The cause of America is in a great measure the cause of all mankind."....T. Paine
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