[driftless2]

My son-in-law was hired the same day he was interviewed as a computer expert in La Crosse. His growing firm is now seeking to expand dramatically. They actually told him to contact anyone he knew with computer expertise to come in for an interview. I believe the unemployment rate in the area is under four percent which is just a little less than the Wisconsin ue rate. Things are sure horrible. (smirk)

[chuckles]

The economic trouble we are in isn't the normal trouble the average person can see. We are NOT in an economic crisis, we are in a CREDIT crisis. This affects no one, until they try to get a loan. While financial institutions are experiencing projectile vomiting, the average Joe is fat and happy. The weakness in banks may start showing up when a few large ones fold up. The dollar is falling faster than planned, inflation is getting worse, and Bernanke has no more bullets. He is FORCED to lower interest rates to try to keep the plates spinning, but the falling dollar and inflation is tying his hands. We either accept the recession, or have $200 oil and $1500 gold. It won't affect the consumer till much later. The obvious effect would be the consumer collapses and the jobs start to fold.

When do you refuse to buy gas or what luxury to you cut first. A good example is Harley Davidson. They were flying high till things started to tighten. The first thing to go in bad times is a $25k motorcycle. They have fallen from $60+ to $35 in just a few months. We will still buy bread, even for $4 a loaf, but we will look to cut everything else first. When the consumer goes, the economy goes.

Keep your eyes on the plates.