Dar En El Clavo
For those that know Spanish, forgive my onlineTranslation for "Hit the Nail on the Head." Not sure who "flashcurious" is, but the blogger referenced a picture that I could definitely relate to:
"The U.S. economy is like Wile E. Coyote when he has just been run off a cliff by the Roadrunner (who would best fit this role, any votes?) and is desperately running in air before falling into the abyss. He will start to fall when the govmint stops stimulating and decides/is forced to raise rates. Give that drunk another drink, he’s got the DTs!"
Weblink Here: (Control F for Flashcurious) http://www.ritholtz.com/blog/2010/03/npr-the-ethics-of-mortgage-modification/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+TheBigPicture+(The+Big+Picture)
I missed the big run since March of 2009, I invested early, October of 2008 and watched as the the market collapsed furhter. I still had bullets, but kept them to the side anticipating a second leg down that never appeared. The market took off and left me scratching my head in the dust.
That said, I believe there is still time for another leg down. The government is writing $8,000 checks for first time homebuyers, and housing sales are still down, while unemployment and foreclosures continue to climb.
Where are the earnings going to come from to support current market valuations? Consumer Spending represents 70% of our economy, with 10% unemployment how is the economy going to grow? What are cities, states and the federal government going to use to replace their declining revenues?
Not to sound like chicken little or Alstry, but these will be interesting times.