Comment: The old rules don't apply anymore

(See in situ)

The old rules don't apply anymore

Here's why:
- The retail sector has massive overcapacity. We do not need more Home Depots, WalMarts, Lowes, Sears, Pizza Huts, Targets, Safeways, etc etc.
- Commercial real estate is flooded with vacant offices and plagued by falling rents.
- Housing inventory is enormous.
- Boomers will be looking to downsize their lifestyles.
- There is not going to be another internet boom.

This was cited from Mish's article at written in 2009 but unfortunately still holds true.

He goes on to say:
The peak growth in jobs, based on an analysis of jobs that are never coming back is clearly in.
- The internet boom peaked at 264,000 jobs per month in 1999.
- The housing bubble boom peaked at 212,000 jobs per month in 2005.
- The commercial real estate boom peaked at 178,000 jobs per month.
- The next peak will be lower yet.

You can also read articles by Charles Hugh Smith like this one which give additional details: