The stock market has been on a rollercoaster ride lately, closing at 360.9 down in today’s session. General Motors loss a business record $38.9 billion in the third quarter. Crude oil reached a record high moving past $98 before closing lower. Time Warner Profits drops 54 percent. The housing sub prime borrowing is reported to be worst than expected. You will probably think I’m crazy when I tell you that none of the above will be the cause of the recession. Wall Street analyst will not tell you this because it probably has not occurred to them. The brokers, traders, and advisers, probably overlooked this little fact I’m about to unveil unto.

This booming economy has been a propped up phony economy from the start. It had nothing to do with the tax cuts. Once the fed cut rates low enough that the predatory lending could begin, it was the beginning of the Fake booming economy. Goods and services were up due to the new homes being built by contractors and developers. Homeowners made upgrades did repairs and added extensions to their homes funded through refinancing and equity loans. The loans enable the borrowers to add in new vehicles while getting cash out. While this was a good thing for some as we have all come to learn it has been a disaster for most. The list of victims in the sub prime lending debacle grows each and everyday.

 While refinancing to a lower rate could be seen as a good thing, the problem was most of these loans came with arms (adjusted rates mortgages). The equity loans only served to force many homeowners into refinancing, and owing more for their property than it’s actually worth. Appraisers had been assessing liberally high value to most properties. While it was a good boost to the economy, it’s also the main reason why we will be in recession by the end of January. The government will run out of ways to hide real numbers on the economy and employment. While the market and big business will not find a fall back available. Congress will try to alleviate the problem. Since this will be a federal election year the president will think he’s aiding the republicans with every use of his veto pen. When actually he will speed up the recession, while making worst the prospect of a short term recovery.