I predicted a long period of stagnation that will in essence bring us back to Year 2000 prices.
White collar professional jobs will be hit next.
If you are waiting for lower housing prices (real adjusted prices), be patient and enjoy watching the events unfold before your eyes.
I don’t think that we will have outright deflation, but very low inflation with stagnant wages. That will, over a decade, bring other productive economies’ wages and prices closer to ours.
As long as the wars in Iraq and Afghanistan continue, our economy will suffer. Superimpose the wars’ timeline to the economy and you see our economic decline.
Our leadership has been distracted away from economics to security and we are paying the price.
An American lost decade? Time will tell….
U.S. may face deflation, a problem Japan understands too well
Economists worry that America could be edging closer to the trap that cost the other nation more than a decade of growth.
San Diego has a lot of government jobs and the government seems to be expanding. You could have a couple that work for the government pulling 65K each, extend themselves with FHA pickup something for 650K keeping the party going.
There’s also the same gov’t workers that bought a long time ago who don’t have to go anywhere.
