I ’m just flooded with news about just how bad the economy is, and am continually wondering how it will all end. Examples are not difficult to find.
32.6% of new mortgages and home-equity loans in 2005 were interest only.
43% of first-time home buyers in 2005 put no money down.
15.2% of all 2005 home buyers owe at least 10% more than their home is worth.
10% of all home owners with mortgages have no equity in their homes.
$2.7 trillion in loans will adjust to higher rates in 2006 and 2007.
In many parts of the country, real estate prices are down well over 40% and going lower.
So tell me how this can unwind in a nice way? Other than hyper-inflating the economy, and if that will help, it will have to end in an absolute bust. Only my opinion, but I would like someone to tell me of another solution, occurrence, or government action that can stop the economy from being in more serious trouble than it already is. The DOW is far too high, by at least 7,000 points. Why? How long can the pump handle be pumped by the PPT (Plunge Protection Team) and media, before is all comes down?
I will have my cell phone on my trip, but cannot guarantee service. 1-970-596-1600. Try if absolutely necessary. My web site will not be updated, and I will have no information on shipping. I understand that markets change, and action is necessary, and that’s why I will have my cell phone.
Last column till Monday, September 11th. Closed Friday, 9/1, and all week of 9/4-8. Have a great labor day weekend, and if you love machinery as I do, and are near Mt. Pleasant Iowa, the Old Thresher’s Reunion is a grand place to visit Friday, Saturday, or Sunday.
P.S. And about Iran’s refusal to stop enriching uranium. So what? How about Israel’s numerous atomic bombs and missiles? Anyone who would drop an atomic bomb on another nation is sealing their own doom and perhaps the rest of us after everyone else gets into the action. Unfortunately, America is a paper tiger who is way over-extended, owes everyone, and is becoming a laughing stock around the world. How tragic. We used to be so powerful, rich, inventive, and prosperous. Sic transit gloria mundi.