Watch the signs. The week that either (or both) Time Magazine and Newsweek publish a cover story asking, “What Went Wrong?” or “Healthcare Reform is Very Sick” or anything similar that suggests—gasp!—Obama has suffered a major political setback, you can be confident that, in their editorial board offices amidst leather chairs and a huge polished mahogany table, someone will have intoned, “It’s not going well for Obama.”
Coming to a town near you or maybe your street, will be more mortgage foreclosures. Banks are being closed and their assets sold to other banks, but while that is a palliative measure to protect customers, it doesn’t change the fact that credit flow is still a trickle. A credit card meltdown is likely on the way. Job losses? Yes, that too.