Comments on: On the Verge of an Economic Boom?

By: Earth to GOP: Push the Balanced Budget Amendment « The Daily Plunge

Earth to GOP: Push the Balanced Budget Amendment « The Daily Plunge — Sat, 03 Apr 2010 12:38:50 +0000

[...] for months Americans aren’t really angry with the White House, they’re angry about the economy. The Republicans should quit banking on the economy staying in the tank forever and come up with a [...]

By: Reconciliation or Suicide? « The Daily Plunge

Reconciliation or Suicide? « The Daily Plunge — Sat, 20 Feb 2010 01:53:44 +0000

[...] large and the productivity of the American worker will eventually push growth. As I’ve stated before my issues with the White House are the long-term implications of the President’s economic [...]

By: Edward J. Dodson

Edward J. Dodson — Mon, 17 Aug 2009 05:30:23 +0000

Sadly, nothing I have heard or read indicates the President or his team of economic advisers really understands the fundamental causes of the current economic downturn.
For one thing, the last time that income and wealth was this concentrated in the U.S. was in 1929. Real household savings in the U.S. has been negative for the last two years, and nominal net worth for most of the 120 million or so owners of residential property has falled by one-third or more. For those who purchased properties at the height of the property market or refinanced mortgage loans, their net worth is negative.
Now, we are seeing a deepening level of mortgage defaults on conventional (i.e., non sub-prime) mortgages. And, the number defaults of mortgages on commercial properties is skyrocketing. Many banks not overly exposed to losses from residential mortgage defaults are exposed on commercial mortgages.
U.K. economist Fred Harrison (view his weekly programs at his “Renegade Economist” website) forecasts the bottom will be reached in 2010 but that we will remain at the bottom for as long as 4-5 years — if government action does not exacerbate the problems.