Do we really have an economy anymore?
The used to say, as GM goes...so goes America. Now GM is bankrupt, most American cities, counties and states are heading that way....and most of the cars we sell these days are foreign.
Others say housing is the best indicator of the health of our economy.....whooops.....we have record foreclosures, record declines in prices, and now constructing the lowest number of new homes in history relative to our population.
Many say health care is where the growth is.....but most of health care is funded by a government running a $2 trillion dollar deficit.
Financial services.....now that is where things are really growing....heck, we went from $25 trilliion in debt in 2000 to over $50 trillion just eight years later. If you were selling debt, you were getting rich and those that borrowed were key drivers of our economy.
Now we are pretty much tapped out.....the primary borrower these days is government. Few others can or desire to borrow anymore.....just look around, how many construction projects do you see going on? Retailers are shutting down and vacancies are becoming more common than occupied units.
Instead of a private economy driving revenues to government model....we have morphed into a borrowing government allocating dollars among its population. 40,000,000 receive food stamps.....51,000,000 receive medicare.......15,000,000 receive unemployment benefits.....tens of million receive social security...........while more and more of private America shuts down day after day.
This is not the end of the world....simply the end of a world as we knew it.
Ask yourself.....how much home can a person afford if they don't have a job? We are losing 500,000 jobs per week and few are hiring as health care and government begin to increase layoffs.