Signs of impending doom in the economy?

http://www.investors.com/editorial/I...issue=20050927

Where do people think our economy is going? I wanted to post the link above to see what people think.

To me there is little doubt that our economy is heading toward a recession. It seems like up till now, the economy has been laughing in the face of inflation, high energy prices and the amount of money that people have leveraged. The fact that the market has done so well the past few months is a complete mystery to me.

Not only are people borrowing more for their homes with short term ARM loans, but they continue to rack up massive amounts of debt on their credit cards. When the initial low rate on the ARM is up and they are faced with a drastically higher mortgage payment, the credit card debt will only continue to increase. While in the short term they will continue to charge items they need, at some point they will no longer be able to make purchases.

Combine this with inflation and these probably here to stay gas prices, and people simply are not going to have the money to be able to support our economy with their money. I am currently building a more cash-oriented portfolio and awaiting the impending market crash, as well as increasing my stake in international markets.

re:

I got this email yesterday from briefing.com...

Word From the CEO

The Great Untold Story: Katrina and Rita have dominated the headlines. There are concerns that the direct impact may slam economic growth. High energy prices and fears that a housing bubble may burst have even led to talk that the US economy may be on the verge of a consumer led recession.

That isn't going to happen.

There is as yet no evidence whatsoever of a consumer pullback. Declines in sentiment readings simply reflect the emotional reaction to the hurricanes. Major retailers have said that store sales are on track.

It may take a few weeks of economic data to realize that economic growth in the fourth-quarter will be above long-term trends. But it will happen.

re:

Do your part for the economy and GO SHOPPING!!! I told my DH I really do need that bottle of Eau de Recolte Bleue perfume and Coach handbag... he said he really does need that Sony laptop, too... haha.