- Aug 21, 2003
- Reaction score
- Chattanooga, TN
The video is important to watch as well (wish it was captioned)..."Worst Is Yet to Come:" Americans' Standard of Living Permanently Changed
Posted Feb 17, 2009 12:53pm EST by Aaron Task in Investing, Recession Related: WMT, WFMI, FDO, ^GSPC, ^DJI, RTH, TGT
There's no question the American consumer is hurting in the face of a burst housing bubble, financial market meltdown and rising unemployment. But "the worst is yet to come," according to Howard Davidowitz, chairman of Davidowitz & Associates, who believes American's standard of living is undergoing a "permanent change" - and not for the better as a result of:
"The average American used to be able to borrow to buy a home, send their kids to a good school [and] buy a car," Davidowitz says. "A lot of that is gone."
- An $8 trillion negative wealth effect from declining home values.
- A $10 trillion negative wealth effect from weakened capital markets.
- A $14 trillion consumer debt load amid "exploding unemployment", leading to "exploding bankruptcies."
Time to start stocking up on dried foods, foods that can maintain a long shelf life... food may be THE most important commodity but it's also going to be the most scarce.
Those who are wealthy enough to weather this storm should do well to do the same I think. It's going to get rougher.
Are you prepared to do with LESS... a LOT less? Ask yourself before replying.