Carnac says: This is going to be one hell of a rough year for the USA. Over 14,000 businesses that operate in malls and strip centers are expected to fail this year. Many major brands are in a cash crunch and the government can only hand out welfare to a limited number before they run totally out of cash. It’s going to be a year where those who are the strongest and smartest will survive. I will anxiously await the arrival of 2010 to see what happened in 2009. Cut out all your unnecessary expenses, save your cash and watch those who are laden with debt, lose their homes and cars and jobs. It ain’t gonna be pretty.
Housing :
San Diego: Down another 15-20% by the end of the year. I don’t care how much your wife nags…………… you will regret it if you buy in San Diego or Orange County this year.
Nationwide: Down the same as San Diego in all of the big, bubble markets but down only 8-10% in the others
Jobs :
San Diego: Unemployment will hit 12-14% % by year end
Nationwide: Unemployment will hit 10-12%
Oil : Fluctuating between $30-$40 a barrel the entire year
Strength of $ towards Euro:
The Euro will drop substantially this year. The Dollar and the Euro will be trading at a one for one basis by year end. Europe is just now starting to crumble.
The Dollar will also gain strongly against the Yen.
Gold: Who knows? I’m not buying any. It’s too volatile.
