Posted May 1st 2010 4:40PM by Connie Madon
Filed under: Market Matters, Economic Data, Federal Reserve
“It's an age-old dilemma. Congress loves to spend taxpayer money. The problem is that Congress is spending money that they don't have, racking up huge budget deficits.
Chairman Bernanke warned that high budget deficits could cause interest rates to rise and derail the economic recovery. The White House estimates that the U.S. budget deficit could reach $5.1 trillion over the next five years. This year, the deficit could set a record of $1.6 trillion.”
My editorial comments:
How could interest rates NOT go up? And, Why NOT stop spending?
The real estate industry will be further impacted – this is a vicious cycle only to be broken by constrained government spending. I think investing in hard hats is a good move because it will be a bumpy ride in 2010. Plan accordingly.
No comments:
Post a Comment