Deflation Warning

This is not an advisory, but a warning...deflation is on its way. In all seriousness, we cannot predict the future (obviously). However, you should know this is not something new coming from this blog. We are in no way doom and gloom, but we are realists. We just cannot sustain our current spending policy; it is literally impossible. Something has to give, and it is going to give way to deflation, in our humble opinion.

Click on the title to link to a short, easy to read article regarding this. Just be educated and aware because it will certainly effect the real estate market even worse.

Stemming the Dollars Decline

Click on the title to link.

Hate To Say, "We Told You So..."

Click on the title to link. The only good thing about this article is that rates are down today because of it. Rates are down because this has given people a dose of reality regarding the economy. We have been saying we do not think we are close to recovering, and it may, in fact, get worse. But this article is pretty much saying that and people are swallowing a bitter pill.

Inflation or Deflation?

Click on the title to link to this video.

Depression?

This is certainly a concern that we have talked about before. This should not serve to freak people out because that just leads to less spending, which can easily fall into deflation. But, again, our goal is to keep you informed, educated and prepared. Contact us with questions.

Visit msnbc.com for Breaking News, World News, and News about the Economy

Here Is The Latest...

As for rates, they continue to steady out a bit after going up after the last two weeks. They did not sky rocket, but moved about .25%. However, they seem to be inching back down. If you need a rate quote call us and we will help you analyze your situation.
As for the market, see the video below on the continued decline in consumer spending. The good news is people are saving more out of necessity. The bad news is, if we are not careful (and we have talked about this plenty), we will slide into a deflationary market where people are not spending, prices are dropping, rates are dropping, but people are losing their jobs because employers cannot afford the because people are not spending and buying their products. It is a vicious cycle that is hard to break.

Visit msnbc.com for Breaking News, World News, and News about the Economy

"Bailout" Update

Here is a link to a great video update of what is happening with the $700 Billion "bailout" that was passed months ago. The women speaking is actually chairing a committee that is holding the government accountable for how this money is spent. She has a difficult task ahead since our government has no clue how to spend anything right now. Frankly, they remind me of a hamster in a wheel; a ton of furious activity that leads to nowhere. That is my frustration speaking.

On the other hand, the Feds, for example, are truly doing everything they possibly can to stimulate the economy. The problem...people are too gun shy and are holding onto their money. This is fine and dandy. But remember this, if that continues we will be sent into a deep deflationary market, and that is not a good thing to be in (obviously). So just keep this in mind and, responsibly, spend and let's all do our part to help recover the economy.

We will continue to keep you up to date on things like this so you are educated and aware of what is actually happening.

When Will Housing Recover?

Click on the title above to link to the article. Take a read and see what you think about this article in the New Mexico Business Weekly. This guy from foreclosure.com is predicting we are seeing the end of the housing debacle, and will be recovering well by summer of 2009. We are not sure we agree with this article as it is complete speculation, in our humble opinion. But we see why he is saying what he is saying. But do not get focused in on when people predict when the market with recover. We continue to hear, see, read ranges from Summer of 2009 to sometime in 2010. Point being, nobody really knows.
The way we see it, let's all do our parts to get help recover the economy by not completely hording money because that will send us into a deflationary market. We are not saying to "eat, drink and be merry". But balance is the key here, folks.

Deflation

MSNBC came out with a great article today on deflationary concerns in the economy right now. You have likely been hearing mostly about inflationary concerns. However, deflation is also a concern (not as big, but it is there). And deflation is often a bigger problem than inflation.
This is a great article because it does a good job of explaining the differences between the two, and the impact deflation would have on the economy. Be sure and read this because, believe it or not, we as consumers have a huge part in how this plays out. Click here for the link.