Doldrums

We really don't have a chance at an economic turn around until people start to get comfortable about spending again - that includes families, and small and large business leaders.

We have a new inspirational president! That's one mark in the "pros" column.

Many, many people still don't have access to the credit they need. Here in So Cal, the housing market is being further negatively impacted because buyers cannot qualify for loans. I talked to two separate sellers that have had multiple buyers back out of deals because of a lack of financing. I didn't get the details, of course. Maybe these buyers were looking for more 100% financing??? .. or adjustable... balloon.. interest only etc.???? Maybe not. I know of others that cannot get car loans because they owned investment properties. One can argue that these are positive developments because banks are getting back to limiting risk. One can also argue that the pendulum has swung too far in that direction. Remember, banks strangulated the depression-era economy with limited credit. The evidence is indicating that this is happening again. We need to find a better balance.

Lack of *reasonable* credit is still a huge mark the the "cons" column.

It's looking like we're in for a very, very long recovery. I heard Paul Krugman forecasting an "L-shaped" recovery.. which isn't much of a recovery at all. I sure hope he's wrong.