Saturday, May 9, 2009
Is The Recession Over?
There's a lot of talk this week about the recession possibly being over. About how we may have hit bottom and we're looking up. That's hardly the case. Unemployment has hit a 25 year high this week. Banks are still closing. Restaurants are empty. Houses aren't selling. We're a long way from a recovery.
I still don't feel like it's hit the Bay Area like the '01 crash did... but there's still time. People have been leaving San Francisco. Rents are down. I just don't buy the argument that this small stock market rally is a sign that the economy is all of the sudden looking better.
If you think about it... nothing has changed. The psyche of the American people is still in the crapper. America keeps pumping money it doesn't have into the markets. People are still getting laid off. I think we're going to be in this for a while. So strap in.