Call me a naysayer but I don't see anything great happening with our country anytime soon. First we have the subprime mortgage situation. That is still working its way through the system. This has directly affected the construction industry. There are some pockets of bright spots but on the whole home building is in the pits. There has been a great push for commercial building but even those plans have been downsized or delayed.
Second we now have a credit crisis as banks wanting to cover their rears from the defaults of the subprimes are forced to tighten their lending. Adding the speculators who have pushed oil to the stratesphere the effect is a perfect storm for economic disaster. In order to try and stave off an economic downturn they lowered rates but in doing so they gave the starting gun shot for other countries to pull money out of our country and invest in more profitable ventures overseas. The intent by lowering prime rates was to get banks to start lending again. The banks however are still trying to recover and are looking to present their shareholders with a positive profit so they have tightened their lending. And as more companies belt tighten by laying off workers the economy sprirals downward even more. I saw this in the 1980's and it is happening again. But this time the safety nets are gone and the rules were changed to benefit the credit card companies. This is the main reason people are walking away from their homes but still paying their credit cards.
Then there's the airlines. With fuel prices cutting into thin profit margins and the airlines planning to cut trips and aircraft, I see no reason for the airlines to want to purchase new planes in the upcomming years. Boeing is said to have a large backlog of aircraft to build and they are actually hiring to try and meet the demand but with the situation as it is I can only see the cancellations of aircraft orders comming in the next year or two.
Then there's the auto industry. Back in the 80's when we had the opportunity to change the way we drive and the whole structure of transportation, the auto industries lulled us into that false sense of security of endless oil supplies and ever larger cars. Humvees, Suvs, pick up trucks and mini vans became the must haves of suburbia. The one or two concept cars like the EV1 that had great potential were killed at the expense of higher profits by the oil and car cos. So now the car companies are forced to rething and retool consumer needs. Problem is they are now years behind companies in Europe, China, and India who will get an easy foothold here in the U.S. and dominate our market. Luckily we have a few innovators here in this country who will be comming out with some good ideas very soon. The "big three" automakers are likely to go the way of TWA and Pan Am as they refuse to adapt in a timely manner.
So maybe as Barak Obama takes the office next year he can come up with a type of new deal to try and save this country from the mess we are now in. Don't expect miracles though it took 8 years to totally mess up our country and it may take 10 years or more to straighten things out.