Report from Main Street | We've been in a Recession for the past year...

I'm going to step out on a limb here and say that for most people, we've been curbing our spending for the past year. There's something about $4/gallon gasoline and rising food prices that kinda puts a crimp in getting the fun little extras for yourself and your kids. So, I would like to notify all those economists out there [and government officials] -- we have been in a recession and probably by the time things start getting better, you'll finally admit it.

My personal opinion is -- as the price of gas goes down and if food prices should recede a bit -- the American lifestyle of spending will return. I'm going to go out on another limb and say that the Christmas season my not be as bit as years past, but it will be within single digit percentage points.

But just in case you live your life by the news, and need further evidence that the world is going to hell in a handbasket - then read the following news items from Google News...


AFP

Weak US output, job market point to recession
Forbes - 49 minutes ago
WASHINGTON (Reuters) - US industrial production posted the biggest monthly decline since 1974 while consumer prices were flat in September, according to reports Thursday that built a compelling argument for more interest rate cuts to slow a steep ...
Inflation in US Wanes; Consumer Prices Unchanged (Update1) Bloomberg
Inflation Pressures Eased in September Wall Street Journal
International Herald Tribune - Reuters - BBC News - Financial Times
all 541 news articles »

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WE WILL BE HEARD -- Voice of Reason from Main Street

I'm going to go out on a limb and say that for every news reporter, news analysts, politician and Wall Street Pundit [along with those currently whining about short selling bans, commodities brokers, executive compensation, etc] telling the American Public that we just don't under stand - I've got a message to you: There are a bunch of us out there that do understand - we are college educated, know how a few things about investing, understand how to manage our money and a lot of other things that you don't want to know or believe out us.

Here's a link to three "comments" on the Wall Street Journal - read them, they each state a very important idea for our current situation.

http://online.wsj.com/article/SB122368090504224785.html?mod=googlenews_wsj

Now, I'm going to state two things that our Federal Government should do immediately -- that will change everything for the better....

1. Suspend Mark-to-Market for long term investments [such as real estate loans]. If financial institutions have to continually re-evaluate their portfolio of loans based upon a "perceived" market value of the actual property, then we will continue to see problems in this area. Real Estate is a long term investment - and in the home loan business, the majority of loans are made to people that are going to pay for their homes no matter what. Does it matter that the value of their home is gone down [or up for that matter]? The only time real estate has value is when it's sold - that when things should "recalculate" on value. Mark-to-Market is there to protect people, but it has gone completely sideways - and as within anything, good "ideas" can have bad "consequences" is not properly implements.

2. Get speculators out of the commodities market. If someone does not produce the raw material, or expect to take delivery of the raw material to make something else, they should not be allowed inside the transaction. A commodity market [without the influence of speculators] will balance itself because sellers want to maximize their money and buyers want to minimize their costs. Each is looking out their own "self interest" within the transaction. It's a dance that goes on everyday in business. But, once you allow speculators into the transaction, there only motivation is to FUD [fear, uncertainty, and doubt] - either with supply [Oh no, there's going to be shortage, you better buy now] or demand [Oh no, people are buy less, you better sell now]. They make money either way -- but add no value whatsoever to the transaction. Also, because they only make money by creating FUD, they will find [or manufacturer it] and then tell the world about it.

Two simple things and neither will cost a billion dollars of tax payer money.

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