Groundhog Day

So after a year or so of living life and being productive with enterprises, how are we doing with the economy and housing? My last post here was April 2010, a little over a year ago. On the surface, the economic conditions appeared to have stabilized from the crisis in 2008.

So now we’ll pop out of the groundhog den and look to see if winter is over. Today however Case-Schiller is reporting not only that a double dip in housing is confirmed, but that the level is at a new low. While CNBC says it is worse than “expected” , they must not have read this blog in 2009 when we projected exactly this result. Today the experts seem to be agreeing. David Blitzer, chairman of the index committee at S&P Indices, said in a statement. “Home prices continue on their downward spiral with no relief in sight.” “People just don’t want to own homes anymore,” he said.

To continue the metaphor, the groundhog is predicting more winter. Keep an eye on the municipal budget issue. Counties, cities, and states are still facing massive budget deficits and are cutting services like crazy. As law enforcement is one of the big areas cut, more episodes of social violence are observed. Dozens of stories of assaults, gang violence, brazen rapes, and attacks on police were on the front pages just in one weekend as unruly behavior is becoming commonplace.

Boston riots have been going on for 4 days, with the Massachusetts State Police unable to control them.

Oh yeah, food stamp use is up 40% over the past two years as well.

 

 

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~ by Dave on May 31, 2011.

2 Responses to “Groundhog Day”

  1. […] after Groundhog Day In case my “Groundhog Day” prediction from yesterday of more economic hardship to come was not enough of to convince you by itself, today we saw some […]

  2. […] Last week I mentioned a subject frequently referenced on Aware Brain; municipal budgets. This issue could be the most significant factor in the lives of Americans in the next few decades. […]

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