Back Again...

It has been a long time since my last post. I am getting back in the mood to begin posting again.

My last post was in August 2009. A year has gone by. What has changed? It seems not much.
The economy is where it was. Though theoretically, the recession ended last June. Wow, what a relief!!!

It is amusing that only a few weeks ago, the talk was about double-dip and the fear of that happening has not subsided. Treasury is planning to buy debt to increase money supply. Increase in money supply may post an inflation threat but inflation is the least of our problems now. Given that one out of every seven American is living in poverty, unemployment has remained at high level, foreclosures continue as they did and consumers are spooked. And add to that a possibility that over the next two years, the US government may become the largest obstacle in fixing the economy. The problem is not be that the fear of inaction, but rather the fear of action.

And even when the effects of the last bubble is not yet past, the next bubble is already shaping up in several sectors - green economic segment, education loans, etc. etc. etc..

The largest possibility is education sector, as the guaranteed student loans come up for payment and there are no jobs to enable the borrowers to pay back. The for-profit education sector has been working hard at making profits, while "helping" the lay people to get loans and see the dreams. When the time comes, there will be no need for corporate bailout - that has already happened. The bailout will have to be for middle-class people. And the same questions will be arising again - did they not know before taking these loans? What were they thinking?

deja vu...