Here’s an article on the Economy. It’s from CNN and suspect out of the blocks. The headline says that consumer confidence rebounds, up from 38 to 45. That’s an increase of nearly 20%. However if you read the article, you would expect that the world has just come to an end. It’s a rehash of the last two months and how terrible everything is.
Consumers are beginning to understand that with all the hubbub, they really do have control over their own lives and with low gas prices and the fact that Wall Street doesn’t seem to be in free fall, maybe having a healthy (money wise) Christmas isn’t so bad after all.
The Stock market has had the largest two day rise in history (or recent history) and no one seems to have noticed. I guess it makes no difference. However if it drops 50 points today, the media will be telling us that the world has ceased to exist as we know it.
Oh, and I read the other day that holiday spending is expected to be UP 3% this year, but since that’s lower than the 5% last year, its touted as a 40% loss. HUH – The economic world is coming to and end and the expectations are that sales will be UP? What’s that all about?
And let’s talk about housing prices. Let’s see – if housing prices fall, back to “almost” affordable levels, what will that mean. It means that more people will be able to afford homes and first time buyers will have more opportunity in the housing market. Not a bad thing. Of course, if you paid $400,000 for your house and its now worth $300,000 you may have some concerns, but only if you sell. If you plan to live in your house for five years, who knows, just like in the past “Bubble” prices will go back up and when the kids are ready for college, you house will be ready to help pay for it. Oh, if you want to upgrade, the lower prices of the house you are buying will more than offset the losses on your existing house.
As the excess supply of houses is purchased (the market was way overbuilt, particularly in areas like Southern California and Las Vegas), and they will be purchased, prices will begin to climb again. The market works.
And how bout gas prices – I paid $1.84 a gallon for the same gasoline I paid over $4 a gallon for six months ago. Isn’t this a good thing? Oil is at $53 a barrel. The doomsayers were telling us six months ago it would be at $200 next year. What happened? No one is going back and talking to all the really knowledgeable folks who were certain oil prices would be forever high.
Live your life. Don’t read the papers. Make decisions on what makes sense to you, not what the “experts” say. Most often, they are wrong.
JVH
