by iiivix

Created on: April 29, 2008   Last Updated: April 30, 2008

2008 came too slowly and now our economy is slumping. With gas and housing foreclosures at record highs blame games have ensued. Now that the stimulus package is coming to homes, our economy will get the medication it severely needs.

President Bush signed the stimulus into action with hopes of increased consumerism but polls are showing a motivation towards reducing debts. What does this mean in the coming weeks and months? Businesses will be competing for your dollar and black Friday might come twice this year.

Second quarter profits will rocket in financial stocks, where as housing and retail centers will show less then expected profits before July. But after the debts are paid we'll have more money to spend making sure 2008 3rd and 4th quarters get the turn around they deserve.

Stay away from retail and auto stocks in 2008 as they won't recover until 2009 when they show 2008 holiday profits. And with higher then usual base prices consumers won't be interested in buying from them until they're lowered.

On Wall Street stock volatility will boost the DOW JONES a good One to Two hundred points average by the end of the year. Housing nationally probably won't turn around for a couple years but mortgage companies should show first quarter profits in 2009. Hopefully bankruptcy cases in the financial market will slow.

Expect 2008 to be about fizzling out debts and 2009 about a massive consumerism boom. Keep your eye on summer advertising campaigns to be bigger then ever with credit card lowering their APR's. Federally interest rates should start rising by August lowering mortgage APR's in 2009 and 2010.

Don't hold your breath for slowing housing foreclosures in 2008 but small home loans could get the respect they deserve this fall. Housing centers should begin to market the idea of small home renovation starting in late June. Everything will be about improving what you all ready have.

What doe's this all mean for you in 2008? Retail will try to spike their prices through August to improve profits. Hold on to your dollar a little longer and let retail beg for it a while. Credit for economic recovery may be given to the next president but you'll deserve all the thanks.

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