Eye of the storm
Are we at the eye of the storm? This economic downturn seems to have lost some of its shock value. That is if you aren’t one of the millions who got laid off. There in that storyline you definitely feel the pain. But for the other roughly 90% who are still employed, this seems like the clouds are parting, the warmth of the sun is upon us, and things might just be looking up for a change.
My guess is that this is a false recovery (in the markets at least), the banks aren’t really lending, although if you feel like you just found a bargain in a new home, all the more power to ya. The housing numbers were “not as bad as expected”.
I think that homes will be more affordable next year. Layoffs are likely going to continue, and its a supply VS demand game there. Fewer employed means less demand for home purchases. Lower home prices and money will find its way into other venues. Like the stock market.
So throwing a wild guess out there, the DOW will be flirting with 10,000 sometime in 2010 just as you discover that that phenomenally lowball bid you made on that nice home you found, gets accepted.
