Insecure about the economy ? Not overall, but some sectors and areas have it VERY BAD.
Worst sectors are automotive and now residential real estate.
Worst areas -
1) Detroit and surrounding area - It's 1931 or 1979 in the auto industry, with no recovery in sight.
>>This is a damn serious problem that needs heavy Federal intervention soon.<< There is a risk if this spreads - we might even call it a dagger aimed at the heart of industrial America.
So far neither political party is doing diddily about this.
I think JQ Public and maybe Tommasso are near the area and could comment.
2) Lousianna has population about 4 % under pre-Katrina, significant crime problems stop people and companies from moving back. Still not recovered, local governments are broke, etc.
3) Florida, especially real estate sector. Lower US dollar will tend to help international tourism, however. Higher Hurricane related insurance costs are affecting housing sectors, higher energy prices make air conditioning very expensive. I expect Florida population growth will slow.
4) Colorado seems to have a slow economy for some reason, maybe delayed high tech slow down ? They had many hardware companies but few dot coms - and mostly dot coms have recovered.
The rest of the country is UP or flat - looking at sectors
1) Most every farm state is doing well, corn, soybeans, cotton, wheat all up.
2) Wall Street had a pretty good year, large bonuses, etc.
3) US aerospace doing well, with worldwide orders for new planes, corporate jets, military spending all up.
4) Energy and Mining sectors we already know about.
5) US exports have been growing slightly faster percentage wise than imports.
Looking at states, California is doing well, but not as good as 2005 was.
All the small population states tend to benefit from farming, mining, or energy. The larger states tend to have diversified economies, and some finance activity.
So outside of the auto industry, I feel okay near term. Not at all like 2000 or early 2001. |
