What to expect of 2011 and on?
2011 will be a great year.
The economy will stop dropping, will touch bottom. It will most likely remain there for a few years; For some areas of the economy and the Country, it will probably continue to drop throughout 2011 and part of 2012. These unlucky areas will be the areas that have not been greatly affected so far, like the big homes, the expensive condos, etc... In communities where prices have not dropped more than 10 or 20%.
I think we will see the typical 50% drop in prices throughout the Country, not only in a few areas, so if you have been spared, brace yourself.
The Government will continue to inject money into the economy, to boost what would eventually should pull us out of this depression, but in general, it won't be effective, the most it will be able to do, is to keep it sort of stable. We will learn to adjust to the world as we had it in 2009, and we will adjust, it will help us be more conscious of our spending, will teach us to save, to use credit wisely, to buy what we need, not what we want. Our nation will become better, we will be more critical of our government, the abuse by big companies. We will see many, many changes in technologies, in the energy sources, in the finance world, and all those changes will be good, citizens will again become important, big companies will have to deal with what Americans want and stop trying to get our last penny.
The big Oil, insurance, pharmaceuticals, banks will become less and less popular, and the voters will become more and more indignant of the damage these companies have inflicted.
Americans will be more and more entrepenurial, as the best and more effective strategy against unemployment and sub-employment, from 15% entrepeneurs we will go to 25% in this decade.
Business that create efficiency, that save money, that create solutions instead of products, business that care about consumers, products that are basic, products that are trully useful will thrive and will become strong and lead the way.
In the end, we will be better, every year we will improve, while our economy absorbs the abuse of the last decade. That will be the theme of the decade.....ABSORTION.