http://www.callwriter.com/blog/2007/09/08/august-jobs-report/ Tue, 06 Jan 2009 09:42:54 +0000 http://wordpress.org/?v=2.1 http://www.callwriter.com/blog/2007/09/08/august-jobs-report/#comment-120 Jeff Sun, 09 Sep 2007 02:29:08 +0000 http://www.callwriter.com/blog/2007/09/08/august-jobs-report/#comment-120 I believe that the reduction in consumer spending hasn't started playing out yet. It could happen rather rapidly when the huge pool of discretionary income that so many folks have become accustomed to pulling from their homes is no longer available. People have treated their homes like an ATM machine, or a second job. In a lot of markets appreciation will drop off considerably, and in other areas they will experience a drop in home values. The adjustment of ARMS's will add to the fire by excellerating foreclosures and further driving prices down in some markets. I doubt it will affect the luxury market as much, except to the extent that some luxury market folks are business owners that rely on consumer spending. A lot of the money that has been spent the past several years came from home equity, and it appears that pool of capital is going to be drying up considerably. I believe that the reduction in consumer spending hasn’t started playing out yet. It could happen rather rapidly when the huge pool of discretionary income that so many folks have become accustomed to pulling from their homes is no longer available. People have treated their homes like an ATM machine, or a second job. In a lot of markets appreciation will drop off considerably, and in other areas they will experience a drop in home values. The adjustment of ARMS’s will add to the fire by excellerating foreclosures and further driving prices down in some markets. I doubt it will affect the luxury market as much, except to the extent that some luxury market folks are business owners that rely on consumer spending. A lot of the money that has been spent the past several years came from home equity, and it appears that pool of capital is going to be drying up considerably.

]]> http://www.callwriter.com/blog/2007/09/08/august-jobs-report/#comment-122 John Brasher Sun, 09 Sep 2007 16:26:33 +0000 http://www.callwriter.com/blog/2007/09/08/august-jobs-report/#comment-122 Agreed. I think the subprime/housing mess will hurt the economy and agree also with John Mauldin that we're headed for a muddle-through economy. I don't see a major recession, though anything is possible. The slowing economy will at some point send the bull packing, though. Agreed. I think the subprime/housing mess will hurt the economy and agree also with John Mauldin that we’re headed for a muddle-through economy. I don’t see a major recession, though anything is possible. The slowing economy will at some point send the bull packing, though.

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