Fortune Telling

Some bloggers, and some I respect, are making excuses for the way Obama handled this most recent teaparty induced crisis.  Some folks call those bloggers Obamabots.  I will not do that.

Matt Taibbi echos my sentiments only he says much better than I could ever hope to say it.

Commentators everywhere are killing the president for his seemingly astonishing level of ball-less-ness.

But, the deed is done.

How long will it take to reach 12% unemployment?

Short term there will be a barely noticeable contraction.  The long term unemployed will remain unemployed.  The few getting unemployment benefits will see their last check in January 2012.

The tide of home foreclosures will not slow down.  If banks think they have their hands full of houses now, just wait.  And the commercial real estate market will be taking another dive.

If you think the short term looks grim, long term is gloomier by a whole nother magnitude.  People are going to have to work much later in life.  Folks will not be able to afford to hang it up at age 62.  A piddlin’ 401-K and reduced Social Security benefits means many more years of scrimping & saving in order to retire.  And that $32,000 new pick-up truck you wanted?  Be happy with a used Ford Focus.

Of course, with more folks out of work, that means less money chasing all the imports from China.  Maybe that is the only good news.

For those of us, like the ol’ Chief that were around before WW2, we will not see how this ends.  With you younger whipper-snappers that have at least a 30 – 40 year time horizon, you’ll be able to see how this plays out.

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