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As far as politics goes, everyone is wondering who will be the next president, and who will be their vice presidential running mate. It really doesn’t matter, because whoever is elected will be left with so many problems that they won’t be able to be effective. Even if they can gain consensus from Congress, the problems will be many and large. The continuation of the war in the Middle East will drain the largest part of the budget. The point will come when the U.S. can no longer afford to keep up a war and also address domestic problems. One of the biggest domestic problems will be the economy. (NEWS proof) The U.S. is at the beginning of a recession that will last for 5 years. You will also see inflation hitting most everyday commodities.
Food, gas, utilities, and commodities of all types will skyrocket in price. More people will lose their jobs when companies move all manufacturing overseas. America simply cannot compete with the emerging Asian and other economies. Wages will not go up because people will just feel lucky to have a job. Buying gas will be a bigger shock than it is now. These are all political problems. The government abandoned the automobile industry in the U.S. and allowed foreign competition to overrun the big three. When automakers needed help, Bush turned away from them. Soon, the food supply will cost even more as the U.S. chases a bad ethanol program. Ethanol and bio-fuels will not be the answer, and government has failed to fund research for other alternatives when it comes to transportation. Another problem area is the country’s aging infrastructure. Bridges and roads are desperately in need of repair. Some need to be torn down and totally rebuilt. Since the politicians haven’t done anything about controlling the price of gas, you will see shipping suffer. Things that used to be shipped by truck will now go by rail and take longer. There will be shortages of many things since they take more time to ship this way. The cost of energy will be another political hot potato. People will die from the heat because they cannot afford electricity to run their air conditioners. Senior citizens and baby boomers who thought they could retire will be strapped for money. Retiring will become something that your parents did. More problems coming than there are people and answers for. Whoever becomes president and vice president will not only have their hands full with the war but if they are not careful, will have a war domestically.
QUESTION: Will this be the longest recession in U.S. history since the Great Depression, and what is the difference, really?
ANSWER: Yes. This economic situation was brought on by corporate and political greed. (NEWS proof) The financial mess was caused by one bank or mortgage company trying to make more profits than they were entitled to. The government played a part in the scheme by allowing cheap money to be in play. The financial mess that is now crippling the banks around the world is a political problem.
QUESTION: In hindsight, will this be considered a recession or a depression?
ANSWER: Nobody will call it a depression. There are too many bad memories attached to that word. This will, however, be the worst economic times that most have seen.
QUESTION: What are your words of wisdom for the average person to survive this recession?
ANSWER: Lose your consumption mentality. You must adopt a more frugal lifestyle. You will have less money because prices will continue to climb. You will see much desperation on television, as people loot grocery stores.
QUESTION: What other countries are going to be pulled into this U.S. recession?
ANSWER: The countries that bought our bad mortgages will suffer like the U.K., France, and Germany. The U.S. will be blamed for many years that they caused a worldwide economic problem.
QUESTION: What are the chances of The U.S., Canada, and Mexico, forming some sort of a unified union similar to the European Union?
ANSWER: As the U.S. runs out of resources, Canada will become a more important neighbor. However, you will see as many Mexican people moving to the U.S. as U.S. citizen’s move to Mexico.
QUESTION: What could trigger a revolution in the U.S.?
ANSWER: Unemployment and food shortages will set off riots in the cities.
QUESTION: How will mortgage rates be affected by the new administration?
ANSWER: It will not be the mortgage rates that you have to worry about. It will be the fact that very few people will be able to get a loan.
QUESTION: Will mortgage rates go up or down during the next administration?
ANSWER: People who had an adjustable rate mortgage will see them increase greatly. Also, the home loan rate will stay about where it is now. However, you will see 20 million to 40 million people lose their homes.
QUESTION: If someone is considering selling their house now, would it be better to sell now with a loss, or wait it out?
ANSWER: If you don’t have to sell, ride it out. However, the longer you wait to sell, the harder the hit you will take.