Time for your daily dose of reality:
Actually a really good read. They outline the same four concerns that I’ve been advancing at this lowly blog (and at my bro’s blog since 2008), namely the ongoing economic woes of our largest trading partner; our bubblicious housing market; our debt-drunk consumers; and the waning stimulus.
I particularly liked this quote:
“The cooling in real estate also suggests that future consumer purchases will be more closely linked to underlying growth in employment and overall income”.
Translation: The days of tapping home equity for crap you don’t need are over. And so is the consumer-debt-driven pseudo economy of the past 5 years. Time to pay the piper.
“The industry consensus is both prices and activity will decline the rest of this year. The only argument is by how much.”
“TD Bank Financial Group economist Francis Fong weighed in yesterday with a forecast that sales will drop by 20% and prices by 7% on a national basis in 2011.”
Scared consumers don’t buy our stuff. Not good.
I’ll be posting another primer later this weekend. Stay tuned….