GeekMBA360

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Are we heading to another financial crisis?

July 30th, 2012 · No Comments

Nouriel Roubini recently predicted that Next year’s perfect global storm could be much worse than 2008.

I have to admit that I’m worried about what will happen although I don’t know what will happen. If there is one thing I learned from the 2008 financial crisis, it’s that we should not underestimate the role politics play in economy. Because politics are unpredictable, I feel it’s hard to make any prediction on the economy.

I live in an area that housing price has turned around and there has been bidding war lately on certain houses. However, I have learned this is not representative of the rest of the United States.

Last week I sat next to a retired couple from Ohio on an airplane to the mid-west. People in the battle ground state of Ohio are hurting. Government workers are only allowed to work 30 to 39 hours so that they don’t get paid any health insurance. Young college graduates are living at home and working two jobs. Housing price is so depressed that one could buy a 1.5 acre house with private lake access for under $225,000.

According to the online servce RealtyTrac the number of foreclosures in state of Georgia went up by 30% year over year in May 2012.

For those of us who work with high tech and live in the west coast high tech areas such as the SF bay area or Seattle, we might not see all of the signs of a depressed economy. But, the rest of the country is still hurting badly.

I’m afraid that we might see a big shock in the next year or two …

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