Comment: The old rules don't apply anymore

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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 http://globaleconomicanalysis.blogspot.com/2009/11/mish-unem... 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:
http://www.oftwominds.com/blogjan09/endgame-work01-09.html