Saturday, January 17, 2009

signs of the times

First sign: Circuit City is finito. All 567 stores are closing, and 34,000 employees will lose their jobs.

Second sign: foreclosures are rising. This story focuses on Southern California. One interesting tidbit that refutes the bullshit line some conservative Republicans are pushing about how this whole crisis was allegedly caused by banks being "forced" to give mortgages to people who weren't qualified is the fact that now, the Post believes, "the number of prime mortgages in delinquency exceeded the subprime loans in danger of default."

Wait till some of those adjustable rate mortgages start moving way up in 2010 and 2011. This could get much uglier.

Third sign: the New York Times writes about people Harvard bankruptcy expert Elizabeth Warren advising people to conduct "financial fire drills" in case you lose your job. Gist of the story: look for ways to cut spending (really do a married/no children couple need THREE cars?), consider borrowing, and make any investments you have more conservative.



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