This is like nothing I have ever seen before in 50 years of looking at the economy. We are in a very serious situation.-Former Federal Bank governor Lyle Gramley, yesterday, on the seriousness of the fiscal crisis.
Brent and I don't own, so the housing and mortgage crisis hasn't hit us directly. However, a friend told us last week that the already inflated rents in San Francisco have moved significantly higher in the last couple of months. Thus, it wouldn't surprise me if we see a big uptick in our rent come summer. I am thisclose to suggesting to Brent that we move into the Alameda area in the East Bay. Rents there are more manageable, and if they take a leap up they would still be much lower than the city's.
I'm no economist, but this downturn has the smell of depression written all over it. The Bush administration's raid of the U.S. Treasury, deregulated banking, collapsing investment firms, gas prices creeping up near $5 a gallon in some places...it's all piling up to the point where we're all really, really fucked.
Just like his father (and to be sure, just like President Hoover), President Bush can't seem to acknowledge the seriousness of the problem. Those $600.00 IRS checks? Please! Those aren't going to help the Americans who have tens of thousands of dollars in overdue mortgage payments!
It's time to get really, really frugal folks! And then hang on for dear life...cuz the coming downturn is going to make the Carter, Reagan, and Bush I downturns look like economic booms.
