First Person: Economic Recovery Seems Phony to Me

Yahoo Contributor Network

COMMENTARY | I'm not an economist, but I am pretty good at playing poker. Some economists say the economy is recovering. I'm calling the bluff.

According to an article by Newsmaxworld, we are in the middle of a phony recovery.

The United States government keeps printing more money to boost the economy. Some experts say the government should step aside and let interest rates go up. I agree.

I haven't noticed any genuine economic recovery in my Florida suburban neighborhood.

Watching the value of my home go down

I don't believe there has been any kind of real housing recovery yet. now says my home is worth $114,000, which is $2,000 above where it touched down. It was worth more than $200,000 at the top of the bubble. I can't refinance without adding on a PMI (private mortgage insurance) payment even though I bought the house with 20 percent down. Even though there is less inventory, people I know are still having a difficult time getting a "fair" price for their homes. I still see foreclosures in my neighborhood that have been vacant now for four or more years.

Waiting for stocks to recover

Most of the stocks I own haven't fully recovered. My only consolation is the fact I purchased dividend-paying stocks and funds that provide income to somewhat counterbalance the lower value of my stocks. Fortunately, I'm years away from retirement so I can continue to dollar-cost average at the lower price points. Still, I see no signs of an economic recovery when looking at my portfolio.

Getting over the shock at the register

I am still not "recovered" from my shock whenever I see the total at the registers at different grocery and department stores. Some experts say the prices are going to skyrocket and our standard of living will continue to fall. I used to be able to get out of the grocery store for $50. I now am lucky if I only spend $80. I'm still feeding the same number of people, but inflation is stinging us.

Holding onto jobs

On the job front, most people I know are still on edge. People who have jobs are extremely grateful for the jobs they have. A lot of retired people I know, who found it difficult to live on social security, can't find work.

With the changing demographics as baby boomers retire, I think the job market will be the first thing to improve within the next five years. I don't worry about my sons getting jobs when they graduate from college in a few years.

Some people say we are entering another recession, while others' predict widespread economic destruction. I think we are just in the middle of an economic cycle. Yes, the stock market will probably drop even further and inflation will hit us hard.

But in another decade, I think the hard economic times will be behind us.

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More from this contributor:

Prosperity Guilt in a Down Economy

I Hope The Housing Market Doesn't Recover for Years

What Feng Shui Taught Me About Money


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