Will the Recession Really Be Over This Fall?

According to MN NBC and Wall Street the recession looks to be ending later this year. Please note a certain level of skepticism as recent events seem to indicate just the opposite. Chrysler in filing bankruptcy is now closing down over 800 dealerships. GM in an effort to at least delay their own financial doom is following suit with about 1,100 dealerships. Within the next 60 days there will be untold tens of thousands of mechanics and auto sales staff filing for unemployment on their way home from work. Not exactly an upswing in the economy as most would agree.

This is but the tip of the iceberg as we all are aware of the ripple effect when any large industry takes a serious hit. The remaining auto industry is going to be on shaky footings for years to come. The American Public has lost faith and won't be extending their debt for the sake of new untested models that assuredly will be more expensive as well they will be supported by a smaller dealership network.

Small businesses who rely on those now defunct dealerships will also go by the wayside. Be it the small restaurant that supplied lunch to former dealership employees, or the uniform cleaning service that supplied matching clothing for their staff and designer entry way door mats during the sloppy winter months. Even the local auto glass business will be loosing one of it's largest clients.

The housing market has somewhat stabilized, the stock market has slowed it's fall from its artificially inflated high perch. Beware, all is not done correcting itself in our economy. With this new rush of job loses comes a new rush of foreclosures. Now we go beyond removing the artificial inflated housing values, now we start loosing real value.

In months to come we go beyond the mess created by Wall Street and their dangerous money lending practices. Now we start the real business of a recession where honest stable working families start loosing out because their jobs dried up and blew away. Then the trickle down affect continues to grow. Schools close, small businesses close and neighborhoods loose valuable tax paying citizens.

No, it is doubtful the recession will come to an abrupt end within the next few months. It may pause for a moment, then it has great potential to worsen. This will be the time it takes to determine if the Governments policy of throwing good money after bad was the correct path.