Good Morning Middle America, your King of Simple News is on the air.
I searched for some good news to start out your Friday and could only come up with the facts that it is in fact Friday, and the sun once more rose in the East.
It appears that we may have turned that corner that I have been warning about, you know, dead man's curve.
We have become so hardened to bad news that we don't recognize it any longer. The papers read; 18,000 laid off by the airlines, GM to furlough 40,000 workers and bankruptcy is not out of the question, Ford to halt production in six additional plants, 50 American soldiers killed in roadside bombing, Foreclosures rise by 53% in June, Oil sets new record above $146, Employment drops 62,000 in June for the sixth consecutive month and the Americans who remain employed reply, "Did you see that they have avocados on sale at Safeway?"
I believe that we have reached the end of an era; but nothing similar to past eras. In the past, the American Revolution forged the way to a free country with unbounded hope, the horse culture gave way to the industrial revolution and was considered a step in the right direction, WWII ended and America flourished. This era will end very differently.
For the first time in the short history of this country, we will regress rather than progress. I believe that we have reached mathematical zenith for the possibility of continuing the economic basis of exponential expansion while maintaining our current lifestyle.
We can and will go on just as Calcutta, Bangladesh, Mexico City and other such impoverished areas have gone on. In fact, our policy of massive immigration and unchecked borders double guarantees that outcome. We have the remainder of the world for a living breathing model to that reality.
In my opinion, housing will never recover. Not even to a former shadow of the ruse that was perpetrated on the American public by our past leadership. Fannie Mae and Freddie Mac, who together finance some 75% of U.S. mortgages, are insolvent. The news today that our federal government may take over these beleaguered giants, is terrifying.