Since my last post, the global economic picture can be compared to that of Dorian Gray. The pundits and media talking heads may talk about “gains”, however the reality is uglier than admitted.
As of now, 39% of Americans believe the economy’s in permanent decline (Huffington Post 6/30/2011). CoreLogic, Inc. released data March 8, 2011 stating 23.1% (or 11 million) US residential mortgages were underwater (where the mortgage value exceeded the property value). We have Greece’s financial woes that could have a domino effect on the rest of Europe, if Greece should default. Almost 10% of Americans are unemployed. And if all that doesn’t make you happy, we have a debt crisis looming here in the Good Ol’ US of A if not addressed by August 2nd could have a crippling effect on our credit rating and our society as a whole.
All of the above reminds me of seeing smoke on the horizon. You may not see the fire, but you know its there due to the smoke. What’s scary is that this is not some small fire, but a quickly growing forest fire (like those recently battled in Arizona).
And those who need to pay attention are not! From cries of “austerity” in Europe to the possible cutting of Social Security/Medicare benefits in America, everyone in power is in total disconnect. It would be like if the firefighters and affected residents in aforesaid Arizona sat around and debated how to deal with the growing fires.
You see the smoke; the fire’s quickly approaching. If we don’t act now, we’ll be burned alive in a financial conflagration that will take a long time to recover from (if ever).