Reply #55: Black Clouds

[unlawflcombatnt]

Yes, I noticed massive inventory increases. In fact, despite the given calculation of inventories (for 9 months) in the Los Angeles area, the true inventory increase over 12 months was over 100%. The same inventory increase is occurring in both Orange County, CA, and Riverside, CA.

I completely agree about how this is going to do great damage to the banking industry. As the housing bubble continues to deflate, so is the ability of home mortgage holders to continue paying on mortgages. The housing decline is going to have a much greater effect on the economy than just the housing industry alone. Over $250 billion in consumer spending was financed last year by home equity loans. That number was expected to be cut in half earlier this year. At this point, it may even go down more.

I think the black clouds are almost overhead now.

unlawflcombatnt

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The economy needs balance between the "means of production" & "means of consumption."