The bubble produced jobs that long-term were not sustainable.

Go to your mall. How many of those stores are selling the exact same merchandise? You could wipe out half the malls and still have plenty of merchandise to go around. If what I am saying is true, half the businesses making that merchandise will need to severely downsize. That is what is happening. Instead of making a million widgets the same company has pared down employees and thus expense and is now making 500,000 widgets. Those that can’t pare down are closing their doors and allowing other competitors making the exact same product to breath a sigh of relief.

On top of the fact that the bubble produced a glut in the same markets you also now have little demand. The demand primarily came from the baby boomers and their spoiled children that are now a lot poorer. WE HAVE NO MONEY TO SPEND. So our kids have no money to spend.

Obama isn’t to blame for any of this any more than anybody else. The problem with Obama is that his agenda is making a bad economy worse by threatening more taxes, more controls at a time when the average person already feels pressure. People are buying guns because they feel threatened. He isn’t bringing this country together with his very left agenda. Things change. He needs to realize that but he is refusing to do that. The economy is much worse than he expected. He simply cannot continue to print money and hope for a sunny day. Hope is great for campaigns, but a terrible policy in reality.

Related Posts:

• There is a huge risk of double dip recession is the government is not careful.
• Residential housing is only one part of the equation.
• Obama spoke about 3 million plus jobs only to pass the stimulus.
• Banks, FRE and FNM already face huge losses for years to come.
• Having a high savings rate is the right thing to do because it creates financial security.

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