Reply #11: Hypothetical scenario [View All]

[cliss]

We are now fast-forwarding ourselves to November 1, 2004.

Please note I'm ignoring whoever will be chosen president next November. There are many trends which have been set into motion, which have to be dealt with, regardless of who takes office.

#1 - The budget deficit. The deficit is staggering, hard to even comprehend. I've read figures as high as $660, at this juncture alone. We have to assume that 2004 will bring more deficits. The ramifications will affect the economy in every area. Interest rates are expected to rise. This will strike a blow to home mortgages (many of which are on ARM-rates). I've read that if the interst rate goes up to 7%, then properties will lost 30% of their value.

#2 - Loss of jobs/continuing layoffs. This is a trend which is continuing. Americans who still have their jobs maybe haven't comprehended the seriousness of this. A lost job is a double drain on our economy = income taxes not paid + unemployment benefits handed out. This is going to cause mortgage defaults + foreclosures. Think of all the young people, sitting in desks at Community Colleges right now, with no job to come to when they're done.

#3 - Lack of ethics in government/business. We all know BushInc is rotten to the core. But I believe it's more prevalent than just them. There is corruption at every level of government, including the Democrats. I believe there is a lot of cheating going on in businesses. My company is involved in dishonest activity. Yet, the president (of the company) continues on his jet-setting, buying $84 bottles of wine with his dinner, oblivious to the dangers. In a word, WE as americans have become unethical.

Which one will hit first? Or be the most serious of them all?
who knows.