The next economic perfect storm - should start mid February.
By Daniel at 29 December, 2009, 12:11 am
--------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
it may crush the existing structure of Fannie and Freddy and drag the economy further down, no matter how many dollars the fed throws at it
here are the events:
each individual event will have no visible effect, but combined will crash the economy:
these are all pending events, many listed on MW as individual events, but no one looks at them all together - but that is how we will feel them in our wallets
financial:
- the next wave of ARMs will start to reset,
- mortgage rates will go up,
- the next wave of foreclosures will hit,
- the default on holiday expenditures will cause more chapter 7 and 13 filings,
- retailers will know how little they made, and many will go chapter 11, or just close
taxes:
- the fed will start seeing how little revenue they got from business because of COBRA extensions and funding, and push for new taxes
- states will start locking in on the lower incomes from wage taxes, and looking to raise taxes,
employment
- employer hiring will slow even more, as the employer tax mandates for health care kick in
- employers will see the new unemployment tax rates which will come due, and lay off or not hire to be able to meet those expenses
- seasonal job losses will be posted as the holiday labor surge ends
- this also be when the numbers are issued for the “new” unemployment extension enrollment and it will “true” the unemployed picture,
health reform effect:
- consumers will see the effect of the new FICA rates and cut spending even more
- the 40% luxury tax on those fine health plans will kick in, and families will see a 20 - 30 % drop in disposable income
- the insurance companies will pass on the taxes they have under the new health bill, and that will cut another 5 - 10% off of each person’s disposable income
- the manufacturers of medical products (tampons, bandages, medical wipes, chairs etc) will pass on the tax they were given, further affecting disposable income
- the Fed will have published the health bill details - and states will see how much they will have to pay, forcing tax increases
- insurance company rates will climb as a result of the new health plan taxes, effective immediately
banking:
- FDIC will collect next 3 years worth of fees to cover the depleted funds from the bank failures
- banks will tighten lending even more, as they scramble to meet the FDIC “tax”,
- 10% of banks will become financially unstable because of the depleted reserves and will be taken over by the newly funded FDIC
and so the next economic collapse happens -just in time for the elections
those that remember history will see that this perfect storm will make the impact of the “luxury” tax and it’s effect on RV’s, Boats and similar look like nothing
- P-T-Barnum-was-right
--------------------------------------------------------------------------------------
--------------------------------------------------------------------------------------
Related Posts:
Trackbacks & Pingbacks
- Pingback by The Next Global Economy » The next economic perfect storm – should start mid February. on January 4, 2010 @ 1:01 am
- Pingback by Is An Economic “Perfect Storm” Coming In February? « Midnight Approaching on January 5, 2010 @ 9:29 am
- Pingback by Economic reccession to continue into 2010 on January 14, 2010 @ 2:49 pm
- Pingback by U.S economy: Signs of digging back into recession! on January 20, 2010 @ 1:28 am
Hard to look at that data and not cringe. Best get prepared it looks like.
It isn’t possible to view the entire article on financials with this big ad on health insurance that is locked onto the page.
What in Christ’s name are you thinking by putting that goddamn shit on a supposedly viewable story?
Do you want people to read it or not?
Robert, get firefox and noscrpt, no more junk on the screen.
The perfect storm won’t happen if the Demonrats lose the Senate seat the late Kennedy used to hold. On January 19th a special election will be held and the Republican contender is right now neck-and-neck with the Demonrat, having pulled up from a 20 point deficit a month or two ago. If this trend continues, the Republican will win, and the Senate will be able to filibuster to death the health care plan.
I do hope that this information does not come to pass, that the “perfect storm” is just a worse-scene scenario, but with the looks of things around even my local environment, businesses are already closing, long-time employees are getting laid off, even entry-level jobs are difficult to find, so the future does not look that inviting, certainly not financially. I think that events may be on a downward spiral, no matter who is in “the driver’s seat”.