9 Comments

1. 

   Chuck Ponzi on June 22, 2010 at 5:07 pm

   Note her frustration when she exclaims “people still debate whether there’s a double dip in housing!”

   Of course, we all know San Diego is immune. Or so we’ve been told.

2. 

   shadash on June 22, 2010 at 5:15 pm

   Wow, mainstream is starting to listen.

   I agree with everything Whitney stated.

3. 

   Daniel on June 22, 2010 at 5:15 pm

   “(R)otting assets on bank balance sheets…”
   They are not on the balance sheets after the banks were allowed to avoid mark to market. That was the biggest kicking of the can the government did in this mess.

4. 

   Bobo on June 22, 2010 at 6:11 pm

   Hmm don’t know, once it becomes main stream then it is likely about over.

   OK to take a somewhat modified Contrarian view,

   I will agree that many sales were move forward into April by the Tax credit, and that will make the next few months slower than they would have been,

   But I would also think that the market will start to return after a few months, unless the state is not bailed out and they start laying off teachers, Police Firemen etc…

   If the State does not receive a bail out before the end of summer, all bets are off, and buckle up.

5. 

   Consultant on June 22, 2010 at 6:35 pm

   Bobo,

   Buckle up.

6. 

   common-sense on June 22, 2010 at 6:50 pm

   Gawd, she’s hot! 😉

7. 

   tj & the bear on June 22, 2010 at 9:19 pm

   Bobo,

   If the Feds bail out the state, it’s game, set & match — we’re Greece. Do you prefer a bankrupt state or a bankrupt country?

8. 

   chrisanthemama on June 22, 2010 at 9:44 pm

   Well, the states cannot run deficits–and the fed gov can. As long as the fed’s printing presses are going, the fed won’t go bk. Fed deficits in the short term are not the same issue as long-term deficits.

   But there’s no reason to believe that WA is riding to the states’ aid. The states will cut programs and hours/lay off workers/increase fees. Buckle up, indeed.

9. 

   CA renter on June 24, 2010 at 3:22 am

   What’s funny is that so many people think that the recession is behind us.

   IIRC, tj and I were talking about the govt-led portion of the downturn many years ago on the HBB. (cheers, tj!). 😉

   BTW, it’s not a matter of *if* we’ll see a govt-led downturn, but when. State workers are already being notified about actual pay cuts (as opposed to furloughs) and workers across the state (state and local) are going to be contributing much more to their retirements (in addition to pay cuts). This could result in a 10-25% effective cut in pay/benefits (possibly more in some cases), and we’ll probably see a potential 33% cut in retirement benefits.

   Hunker down…