Saturday, November 17, 2007

Are we headed for a Recession?

by Nancy Woodward

Consumer spending accounts for two thirds of the economic activity in the nation. Last year, payrolls grew by 189,000 a month. this year the number is closer to 125,000.

Spending power is definitely eroding. This is caused in part by rising energy costs. Since tigher lending practices now pervail, homeowners will be less able to drain the equity in their home and increase their spending power.

You should consider your entire financial position prior to seeking additional funding. Should inflation continue to rise, it is possible we will see a recession.

As usual, I recommend you do your due dilligence prior to making significant changes to your financial situation.

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