We have gone through a depression, a recession, an adjustment and a rebound; at least according the financial press. Yet, underneath all of that is a funny thing we call reality. Adjustable rate mortgages for many people will be coming up for review this year and next which could mean larger mortgage payments for many people. Which spells big trouble for the common worker as it will be hard for him or her to afford increased mortgage payments.
A large number of companies have cut salaries, gotten rid of benefits, reduced hours, and numerous other cost-cutting measures to try and stay in business. There are rumors that Blockbuster, Radio Shack, and many other long-established companies may not survive for very long, which means, thousands more people will be laid off and hundreds of thousands of people will be affected as members of their families. These people will then have to cut back on spending which means the businesses they frequent will suffer and have to lay off people and the cycle starts again.
Now is a good time to think about starting a home business or moving to a lower cost area. I have the impression tough times will be around a lot longer than many of us think.
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