Tuesday, September 29, 2009

All this talk of the recession having come to an end can be confusing to people and also quite deceptive. They now think that it may be time to start that ol' debt ball rolling again. Use the credit card, borrowing off the house. Get in on those cheap airfares and start my housing portfolio maybe.

But wait. What of the fundamentals. Unemployment still rising. I mean who is going to drive this recovery if jobs are disappearing? What of the commercial property price crash coming because people aren't buying as much stuff and because stimulus has created a false dawn? And what of the toxic paper still in the system, just hidden for now with clever accounting practices?

Be careful that what growth you see isn't government funded through stimulus packages. If it is, we are only in a temporary heavenly high. The devil is in the debt still languishing in the system.

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