Recession is coming again. Don’t let the presumed end of the Great Recession in 2009 fool you. Horrible housing market numbers from the National Association of Realtors and deplorable news in unemployment predict more instability for the economy. And as usual, providing personal finance advice, real estateReal Estate is land and anything permanently attached to it, such as buildings and improvements. advice and consumer advice on the Ilyce Glink Show June 3, 2012 on WSB Radio.
This was such a crazy week of business news, we’re still shaking from some of the reported numbers. Folks, it looks like recession is coming again, a 1930s redux.
It’s like we’re standing at the precipice of a financial cliff and I feel like the economy is about to tip. I have been saying this for two years. We technically emerged from the Great Recession in June 2009 and yet all I see and hear are people who are really worried. Let’s look at what we’ve got:
- Housing – disastrous pending home sales figures from the National Association of Realtors.
- Unemployment – dreadful numbers released Friday show that we only added 69,000 new jobs in May 2012. We need 130,000-140,000 each month just to keep up with population growth and break even.
These two statistics are linked. You cannot have a strong real estate market without jobs. When homeowners are unemployed or underemployed, they can’t pay the mortgageA Mortgage is a document granting a lien on a home in exchange for financing granted by a lender. The mortgage is the means by which the lender secures the loan and has the ability to foreclose on the home. or the rest of their bills.
There’s no doubt that the economic recovery is slowing. The Federal ReserveThe Reserve is the amount of money set aside by a condo, co-op, or homeowners' association for future capital improvements. Board is once again discussing steps. But today on the show, I’ll tell you two things you need to do to prepare for the coming recession.
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